Ares Capital Corporation (ARCC): A Technical View


As of Friday close, Ares Capital Corporation’s (NASDAQ:ARCC) stock was down -$0.36, moving down -2.02 percent to $17.43. The average number of shares traded per day over the past five days has been 5,797,820 shares. 1 time new highs have been achieved over the past 5 days, with a -$0.24 fall in that time frame. In the last twenty days, the average volume was 4,126,655, while in the previous 50 days, it was 3,594,142.

Since last month, ARCC stock retreated -11.48%. Shares of the company fell to $17.19 on 03/16/23, the lowest level in the past month. A 52-week high of $22.54 was reached on 02/07/23 after having rallying from a 52-week low of $16.51. Since the beginning of this year, ARCC’s stock price has dropped by -5.63% or -$1.04, and marked a new high 9 times. However, the stock has declined by -22.68% since its 52-week high.

Top 5 EV Tech Stocks to Buy for 2023

According a new report published by BloombergNEF on investment in the energy transition, annual spending on passenger EVs hit $388 billion in 2022, up 53% from the year before. Like we said, the boom is accelerating – and the time to buy EV-related tech stocks is now.

Click Here to Download the FREE Report.


ARCC stock investors should be aware that Ares Capital Corporation (ARCC) stock had its last reported insider trading activity 2 days ago on Mar 16. ROLL PENELOPE F, the Chief Financial Officer of the company, purchased of 3,000 shares for $17.44 on Mar 16. It resulted in a $52,320 investment by the insider. ROLL PENELOPE F added 3,000 shares at an average price of $17.50 on Mar 15. The insider now owns 57,500 shares following the transaction. On Sep 14, Chief Financial Officer ROLL PENELOPE F bought 2,500 shares at $19.04 apiece. The transaction was valued at $47,600.

Valuation Metrics

Right now, Ares Capital Corporation (ARCC) has a P/E ratio of about 15.29. Besides these, the trailing price-to-sales (P/S) ratio of 4.42, the price-to-book (PB) ratio of 0.95.

The latest dividend of $0.48 per share was paid out, remained unchanged from last year’s $0.48. On Wednesday February 9 2022, a $0.45 dividend increase was announced.

Financial Health

Based on annual data, ARCC earned $1.15 billion in gross profit and brought in $2.1 billion in revenue.

According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. While analysts expected Ares Capital Corporation to report $0.56 quarterly earnings, the actual figure was $0.63 per share, beating the consensus estimate by 12.50%. During the quarter, the company generated $515.0 million in EBITDA. The value of shareholders’ equity is $531.37 million.

Technical Picture

This quick technical analysis looks at Ares Capital Corporation’s (ARCC) price momentum. With a historical volatility rate of 32.12%, the RSI 9-day stood at 25.69% on 17 March.

With respect to its five-day moving average, the current Ares Capital Corporation price is down by -1.36% percent or -$0.24. At present, ARCC shares trade -11.79% below its 20-day simple moving average and -2.19% percent below its 100-day simple moving average. However, the stock is currently trading approximately -7.58% below its SMA50 and -10.06% below its SMA200.

Stochastic coefficient K was 13.38% and Stochastic coefficient D was 16.78%, while ATR was 0.48. Given the Stochastic reading of 9.42% for the 14-day period, the RSI (14) reading has been calculated as 28.47%. As of today, the MACD Oscillator reading stands at -0.55, while the 14-day reading stands at -1.02.

Analyst Ratings

Hovde Group upgraded its rating on Ares Capital Corporation (NASDAQ: ARCC) to an Outperform in a note to investors on April 28, 2022. The analysts firm previously had a Market perform rating on the stock.Ares Capital Corporation (ARCC) has been rated Buy by analysts. According to 0 brokerage firms, ARCC is a sell, and 1 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Ares Capital Corporation stock as buy, with 13 recommending it as overweight.

With a median target price of $21.00, the current consensus forecast for the stock is $20.00 – $24.00. Based on these forecasts, analysts predict Ares Capital Corporation (ARCC) will achieve an average price target of $21.13.


Please enter your comment!
Please enter your name here