Analyst Valuation and EPS Growth for Ares Capital (NASDAQ:ARCC)

Earnings results for Ares Capital (NASDAQ:ARCC)

Ares Capital Corporation is expected* to report earnings on 02/10/2021 before market open. The report will be for the fiscal Quarter ending Dec 2020. According to Zacks Investment Research, based on 7 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.4. The reported EPS for the same quarter last year was $0.45.

Ares Capital last announced its earnings data on November 1st, 2020. The investment management company reported $0.39 earnings per share for the quarter, beating analysts’ consensus estimates of $0.38 by $0.01. The firm had revenue of $352 million for the quarter, compared to analysts’ expectations of $343.90 million. Its revenue for the quarter was down 9.0% on a year-over-year basis. Ares Capital has generated $1.89 earnings per share over the last year and currently has a price-to-earnings ratio of 24.0. Ares Capital has confirmed that its next quarterly earnings report will be published on Wednesday, February 10th, 2021. Ares Capital will be holding an earnings conference call on Wednesday, February 10th. Interested parties can register for or listen to the call using this link.

Analyst Opinion on Ares Capital (NASDAQ:ARCC)

10 Wall Street analysts have issued ratings and price targets for Ares Capital in the last 12 months. Their average twelve-month price target is $16.19, predicting that the stock has a possible downside of 10.17%. The high price target for ARCC is $17.50 and the low price target for ARCC is $15.00. There are currently 2 hold ratings and 8 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Ares Capital has received a consensus rating of Buy. The company’s average rating score is 2.80, and is based on 8 buy ratings, 2 hold ratings, and no sell ratings. According to analysts’ consensus price target of $16.19, Ares Capital has a forecasted downside of 10.2% from its current price of $18.02. Ares Capital has only been the subject of 3 research reports in the past 90 days.

Dividend Strength: Ares Capital (NASDAQ:ARCC)

Ares Capital is a leading dividend payer. It pays a dividend yield of 8.84%, putting its dividend yield in the top 25% of dividend-paying stocks. Ares Capital has only been increasing its dividend for 1 years. The dividend payout ratio of Ares Capital is 84.66%. Payout ratios above 75% are not desirable because they may not be sustainable. Based on EPS estimates, Ares Capital will have a dividend payout ratio of 96.39% in the coming year. This indicates that Ares Capital may not be able to sustain their current dividend.

Insiders buying/selling: Ares Capital (NASDAQ:ARCC)

In the past three months, Ares Capital insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $115,780.00 in company stock. Only 0.60% of the stock of Ares Capital is held by insiders. Only 31.33% of the stock of Ares Capital is held by institutions.

Earnings and Valuation of Ares Capital (NASDAQ:ARCC

Earnings for Ares Capital are expected to grow by 4.40% in the coming year, from $1.59 to $1.66 per share. The P/E ratio of Ares Capital is 24.03, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 25.76. The P/E ratio of Ares Capital is 24.03, which means that it is trading at a more expensive P/E ratio than the Finance sector average P/E ratio of about 22.94. Ares Capital has a P/B Ratio of 1.03. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

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