Ares Capital Co. (NASDAQ:ARCC) announced a quarterly dividend on Wednesday, October 31st, RTT News reports. Stockholders of record on Friday, December 14th will be paid a dividend of 0.39 per share by the investment management company on Friday, December 28th. This represents a $1.56 dividend on an annualized basis and a dividend yield of 9.09%.
Ares Capital has a payout ratio of 98.7% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Analysts expect Ares Capital to earn $1.66 per share next year, which means the company should continue to be able to cover its $1.56 annual dividend with an expected future payout ratio of 94.0%.
Shares of NASDAQ:ARCC opened at $17.16 on Thursday. Ares Capital has a one year low of $15.03 and a one year high of $17.58. The firm has a market cap of $6.94 billion, a PE ratio of 12.35, a P/E/G ratio of 3.42 and a beta of 0.65. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.35 and a quick ratio of 1.35.
In other news, Director Bates Ann Torre bought 9,000 shares of the business’s stock in a transaction on Wednesday, August 29th. The shares were bought at an average cost of $17.44 per share, with a total value of $156,960.00. Following the purchase, the director now directly owns 20,000 shares in the company, valued at $348,800. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Eric B. Siegel bought 6,990 shares of the business’s stock in a transaction on Wednesday, September 12th. The shares were purchased at an average cost of $17.30 per share, for a total transaction of $120,927.00. Following the completion of the purchase, the director now owns 36,630 shares in the company, valued at $633,699. The disclosure for this purchase can be found here. Over the last three months, insiders have acquired 16,590 shares of company stock worth $288,055. Company insiders own 0.49% of the company’s stock.
ARCC has been the subject of a number of recent research reports. Citigroup initiated coverage on Ares Capital in a research report on Thursday, August 23rd. They set a “buy” rating and a $19.00 price objective for the company. BidaskClub raised shares of Ares Capital from a “sell” rating to a “hold” rating in a research note on Thursday, July 19th. National Securities reissued a “buy” rating and set a $19.00 target price on shares of Ares Capital in a research note on Monday, August 6th. Finally, Zacks Investment Research raised shares of Ares Capital from a “hold” rating to a “buy” rating and set a $18.00 target price on the stock in a research note on Wednesday, October 24th. Two research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and a consensus price target of $18.28.
About Ares Capital
Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.
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