Earnings results for Ares Capital (NASDAQ:ARCC)
Ares Capital last released its quarterly earnings results on February 9th, 2021. The investment management company reported $0.54 earnings per share for the quarter, topping the consensus estimate of $0.40 by $0.14. The business earned $440 million during the quarter, compared to analysts’ expectations of $359.17 million. Its quarterly revenue was up 14.0% 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 26.1. Ares Capital has confirmed that its next quarterly earnings report will be published on Wednesday, April 28th, 2021.
Analyst Opinion on Ares Capital (NASDAQ:ARCC)
7 Wall Street analysts have issued ratings and price targets for Ares Capital in the last 12 months. Their average twelve-month price target is $17.75, predicting that the stock has a possible downside of 9.44%. The high price target for ARCC is $20.00 and the low price target for ARCC is $15.50. There are currently 2 hold ratings and 5 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 2.71, and is based on 5 buy ratings, 2 hold ratings, and no sell ratings. According to analysts’ consensus price target of $17.75, Ares Capital has a forecasted downside of 9.4% from its current price of $19.60. Ares Capital has only been the subject of 2 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 8.21%, 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 not sold or bought any 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 26.13, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 24.36. The P/E ratio of Ares Capital is 26.13, which means that it is trading at a more expensive P/E ratio than the Finance sector average P/E ratio of about 23.12. Ares Capital has a P/B Ratio of 1.12. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.
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