Ares Capital Corporation (NASDAQ: ARCC) has experienced a rise in its stock price by 0.36 compared to its previous closing price of 19.65. However, the company has seen a gain of 0.61% in its stock price over the last five trading days. The Motley Fool reported 2023-11-19 that Ares Capital provides flexible debt and equity solutions to businesses. The stock currently has a dividend yield of 10% and trades at a price-to-book multiple right in the middle of its public company peers.
Is It Worth Investing in Ares Capital Corporation (NASDAQ: ARCC) Right Now?
The price-to-earnings ratio for Ares Capital Corporation (NASDAQ: ARCC) is above average at 8.54x, while the 36-month beta value is 1.04.Analysts have differing opinions on the stock, with 13 analysts rating it as a “buy,” 1 as “overweight,” 2 as “hold,” and 0 as “sell.”
The average price point forecasted by analysts for Ares Capital Corporation (ARCC) is $20.94, which is $1.32 above the current market price. The public float for ARCC is 565.27M, and currently, short sellers hold a 3.35% ratio of that floaft. The average trading volume of ARCC on November 20, 2023 was 2.67M shares.
ARCC’s Market Performance
ARCC’s stock has seen a 0.61% increase for the week, with a 4.95% rise in the past month and a 3.41% gain in the past quarter. The volatility ratio for the week is 0.74%, and the volatility levels for the past 30 days are at 1.30% for Ares Capital Corporation The simple moving average for the past 20 days is 2.01% for ARCC’s stock, with a 4.05% simple moving average for the past 200 days.
Analysts’ Opinion of ARCC
Many brokerage firms have already submitted their reports for ARCC stocks, with B. Riley Securities repeating the rating for ARCC by listing it as a “Buy.” The predicted price for ARCC in the upcoming period, according to B. Riley Securities is $20.50 based on the research report published on June 16, 2023 of the current year 2023.
ARCC Trading at 2.28% from the 50-Day Moving Average
After a stumble in the market that brought ARCC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -2.23% of loss for the given period.
Volatility was left at 1.30%, however, over the last 30 days, the volatility rate increased by 0.74%, as shares surge +4.94% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +0.65% upper at present.
During the last 5 trading sessions, ARCC rose by +0.71%, which changed the moving average for the period of 200-days by +0.25% in comparison to the 20-day moving average, which settled at $19.38. In addition, Ares Capital Corporation saw 6.77% in overturn over a single year, with a tendency to cut further gains.
Reports are indicating that there were more than several insider trading activities at ARCC starting from SCHNABEL MICHAEL KORT, who purchase 15,000 shares at the price of $17.84 back on May 02. After this action, SCHNABEL MICHAEL KORT now owns 15,000 shares of Ares Capital Corporation, valued at $267,600 using the latest closing price.
ROLL PENELOPE F, the Chief Financial Officer of Ares Capital Corporation, purchase 3,000 shares at $17.44 during a trade that took place back on Mar 16, which means that ROLL PENELOPE F is holding 60,500 shares at $52,320 based on the most recent closing price.
Stock Fundamentals for ARCC
Current profitability levels for the company are sitting at:
- +53.30 for the present operating margin
- +78.60 for the gross margin
The net margin for Ares Capital Corporation stands at +27.50. The total capital return value is set at 5.55, while invested capital returns managed to touch 2.92.
Based on Ares Capital Corporation (ARCC), the company’s capital structure generated 128.94 points at debt to equity in total, while total debt to capital is 56.32. Total debt to assets is 55.00, with long-term debt to equity ratio resting at 120.92. Finally, the long-term debt to capital ratio is 52.82.
When we switch over and look at the enterprise to sales, we see a ratio of 9.82, with the company’s debt to enterprise value settled at 0.57. The receivables turnover for the company is 10.86 and the total asset turnover is 0.10.
In a nutshell, Ares Capital Corporation (ARCC) has experienced a better performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.