What Analysts Say about the Ares Capital Corporation (ARCC) Stock


Ares Capital Corporation (NASDAQ:ARCC) saw a downside of -0.05% to close Tuesday at $19.46 after subtracting -$0.01 on the day. The 5-day average trading volume is 3,000,280 shares of the company’s common stock. It has gained $19.53 in the past week and touched a new high 3 times within the past 5 days. An average of 3,242,595 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,734,728.

ARCC’s 1-month performance is 4.46% or $0.78 on its low of $18.39 reached on 12/28/22. The company’s shares have touched a 52-week low of $16.51 and high of $22.86, with the stock’s rally to the 52-week high happening on 01/12/23. YTD, ARCC has achieved 5.36% or $0.99 and has reached a new high 4 times. However, the current price is down -14.86% from the 52-week high price.

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Valuation Metrics

Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 5.07 while the price-to-book (PB) in the most recent quarter is 1.05.

The firm’s gross profit as reported stood at $770.0 million against revenue of $1.82 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Analysts expected ARCC to announce $0.49 per share in earnings in its latest quarter, but it posted $0.5, representing a 2.00% surprise. EBITDA for the quarter stood at more than $429.0 million. Shareholders hold equity totaling $508.26 million.

Let’s look briefly at Ares Capital Corporation (ARCC) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 63.08% to suggest the stock is trending Neutral, with historical volatility in this time period at 28.47%.

The stock’s 5-day moving average is $19.13, reflecting a +3.02% or $0.57 change from its current price. ARCC is currently trading +7.04% above its 20-day SMA, -1.02% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +2.21% and SMA200 by-7.86%.

Stochastic %K and %D was 75.34% and 57.95% and the average true range (ATR) pointed at 0.37. The RSI (14) points at 58.71%, while the 14-day stochastic is at 86.67% with the period’s ATR at 0.38. The stock’s 9-day MACD Oscillator is pointing at 0.17 and 0.34 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Ares Capital Corporation (NASDAQ: ARCC), Hovde Group upgraded it to an Outperform rating. They previously had a Market perform rating on the stock. Analysts offering their rating for ARCC stock have a consensus rating for the stock as Buy. Currently, 0 brokerage advisors rate ARCC as a “sell,”, while 1 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 1 rates the stock as overweight while 12 have offered a “buy” rating.

What is ARCC’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $20.00 and a high of $22.00, with their median price target at $21.00. Looking at these predictions, the average price target given by analysts is for Ares Capital Corporation (ARCC) stock is $20.92.


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