Ares Capital Corporation (NASDAQ: ARCC) has a price-to-earnings ratio of 7.50x that is above its average ratio. Additionally, the 36-month beta value for ARCC is 1.03. There are mixed opinions on the stock, with 6 analysts rating it as a “buy,” 4 rating it as “overweight,” 4 rating it as “hold,” and 0 rating it as “sell.”
The public float for ARCC is 602.53M and currently, short sellers hold a 4.65% ratio of that float. The average trading volume of ARCC on March 25, 2024 was 3.82M shares.
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ARCC) stock’s latest price update
The stock price of Ares Capital Corporation (NASDAQ: ARCC) has jumped by 0.60 compared to previous close of 19.99. Despite this, the company has seen a gain of 0.30% in its stock price over the last five trading days. Seeking Alpha reported 2024-03-24 that BDCs, including Ares Capital, are expected to do well in a lower-rate environment due to their ability to generate higher returns and dividends compared to risk-free assets. ARCC has shown strong financial performance, with a high operating margin and profit margin, and has experienced consistent top-line growth. ARCC’s dividend track record and stable financials make it an attractive investment option, especially as capital flows back into the markets from money market accounts.
ARCC’s Market Performance
ARCC’s stock has risen by 0.30% in the past week, with a monthly drop of 0.00% and a quarterly rise of 2.50%. The volatility ratio for the week is 0.99% while the volatility levels for the last 30 days are 0.93% for Ares Capital Corporation The simple moving average for the past 20 days is -0.70% for ARCC’s stock, with a 2.56% 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 “Neutral.” The predicted price for ARCC in the upcoming period, according to B. Riley Securities is $21 based on the research report published on January 08, 2024 of the current year 2024.
B. Riley Securities, on the other hand, stated in their research note that they expect to see ARCC reach a price target of $20.50. The rating they have provided for ARCC stocks is “Buy” according to the report published on June 16th, 2023.
Wells Fargo gave a rating of “Equal Weight” to ARCC, setting the target price at $18 in the report published on April 18th of the previous year.
ARCC Trading at -0.65% 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 -3.57% of loss for the given period.
Volatility was left at 0.93%, however, over the last 30 days, the volatility rate increased by 0.99%, as shares surge +0.12% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -1.01% lower at present.
During the last 5 trading sessions, ARCC rose by +0.22%, which changed the moving average for the period of 200-days by +5.60% in comparison to the 20-day moving average, which settled at $20.25. In addition, Ares Capital Corporation saw 0.40% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
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 ’23. After this action, SCHNABEL MICHAEL KORT now owns 15,000 shares of Ares Capital Corporation, valued at $267,600 using the latest closing price.
Stock Fundamentals for ARCC
Current profitability levels for the company are sitting at:
- 0.88 for the present operating margin
- 0.75 for the gross margin
The net margin for Ares Capital Corporation stands at 0.93. The total capital return value is set at 0.06.
Based on Ares Capital Corporation (ARCC), the company’s capital structure generated 0.52 points at debt to capital in total, while cash flow to debt ratio is standing at 0.04. The debt to equity ratio resting at 1.07. The interest coverage ratio of the stock is 2.71.
Currently, EBITDA for the company is 1.29 billion with net debt to EBITDA at 7.91. When we switch over and look at the enterprise to sales, we see a ratio of 14.43. The receivables turnover for the company is 6.26for trailing twelve months and the total asset turnover is 0.07.
Conclusion
In conclusion, Ares Capital Corporation (ARCC) has seen better performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
