Ares Capital Corporation (NASDAQ: ARCC) has seen a decline in its stock price by -0.05 in relation to its previous close of 20.57. However, the company has experienced a 0.83% gain in its stock price over the last five trading sessions. 24/7 Wall Street reported 2024-04-06 that Investors love dividend stocks because they provide dependable income and a great opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation.
Is It Worth Investing in Ares Capital Corporation (NASDAQ: ARCC) Right Now?
The price-to-earnings ratio for Ares Capital Corporation (NASDAQ: ARCC) is 7.67x, which is above its average ratio. Moreover, the 36-month beta value for ARCC is 1.03. Analysts have varying opinions on the stock, with 6 analysts rating it as a “buy,” 4 as “overweight,” 4 as “hold,” and 0 as “sell.”
The public float for ARCC is 602.53M and currently, short sellers hold a 3.02% of that float. On April 09, 2024, ARCC’s average trading volume was 3.74M shares.
ARCC’s Market Performance
ARCC’s stock has seen a 0.83% increase for the week, with a 0.49% rise in the past month and a 0.73% gain in the past quarter. The volatility ratio for the week is 0.90%, and the volatility levels for the past 30 days are at 1.11% for Ares Capital Corporation The simple moving average for the last 20 days is 1.10% for ARCC stock, with a simple moving average of 4.47% for the last 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 1.46% 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 -1.44% of loss for the given period.
Volatility was left at 1.11%, however, over the last 30 days, the volatility rate increased by 0.90%, as shares surge +0.24% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +0.34% upper at present.
During the last 5 trading sessions, ARCC rose by +0.83%, which changed the moving average for the period of 200-days by +10.60% in comparison to the 20-day moving average, which settled at $20.34. In addition, Ares Capital Corporation saw 2.65% 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 14.6. The receivables turnover for the company is 6.26for trailing twelve months and the total asset turnover is 0.07.
Conclusion
To wrap up, the performance of Ares Capital Corporation (ARCC) has been better in recent times. The stock has received a bullish of “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.
