The stock price of Ares Capital Corp (NASDAQ: ARCC) has surged by 1.30 when compared to previous closing price of 20.71, but the company has seen a -0.24% decline in its stock price over the last five trading sessions. fool.com reported 2024-07-22 that Hercules Technology Growth Capital makes loans to emerging technology businesses. Ares Capital offers a unique suite of financial products to lower-middle-market businesses.
Is It Worth Investing in Ares Capital Corp (NASDAQ: ARCC) Right Now?
Ares Capital Corp (NASDAQ: ARCC) has a price-to-earnings ratio that is above its average at 7.16x. The stock has a 36-month beta value of 1.05. Opinions on the stock are mixed, with 6 analysts rating it as a “buy,” 4 as “overweight,” 4 as “hold,” and 0 as “sell.”
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The public float for ARCC is 609.92M, and at present, short sellers hold a 2.84% of that float. On July 23, 2024, the average trading volume of ARCC was 3.27M shares.
ARCC’s Market Performance
ARCC stock saw an increase of -0.24% in the past week, with a monthly gain of 1.94% and a quarterly increase of 1.89%. The volatility ratio for the week is 1.04%, and the volatility levels for the last 30 days are 0.90% for Ares Capital Corp (ARCC). The simple moving average for the last 20 days is 0.36% for ARCC stock, with a simple moving average of 3.46% 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 -0.56% 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 -3.94% of loss for the given period.
Volatility was left at 0.90%, however, over the last 30 days, the volatility rate increased by 1.04%, as shares surge +1.94% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +0.96% upper at present.
During the last 5 trading sessions, ARCC fell by -0.24%, which changed the moving average for the period of 200-days by +11.71% in comparison to the 20-day moving average, which settled at $20.92. In addition, Ares Capital Corp saw 4.74% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for ARCC
Current profitability levels for the company are sitting at:
- 0.83 for the present operating margin
- 0.97 for the gross margin
The net margin for Ares Capital Corp stands at 0.93. The total capital return value is set at 0.06.
Based on Ares Capital Corp (ARCC), the company’s capital structure generated 0.5 points at debt to capital in total, while cash flow to debt ratio is standing at -0.03. The debt to equity ratio resting at 0.99. The interest coverage ratio of the stock is 2.78.
Currently, EBITDA for the company is 1.29 billion with net debt to EBITDA at 11.25. When we switch over and look at the enterprise to sales, we see a ratio of 13.2. The receivables turnover for the company is 3.94for trailing twelve months and the total asset turnover is 0.08.
Conclusion
To sum up, Ares Capital Corp (ARCC) has seen a better performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others 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.
