Ares Capital Corporation (NASDAQ:ARCC) has a 12-month trailing P/E ratio of 5.49. The stock’s Relative Strength Index (RSI) is 40.85, with weekly volatility at 1.96% and ATR at 0.32. The ARCC stock’s 52-week price range has touched low of $13.15 and a $20.10 high. Its shares traded lower over the last trading session, losing -1.76% on 06/18/21. The shares fell to a low of $18.91 before closing at $19.00. Intraday shares traded counted 4.14 million, which was -104.08% lower than its 30-day average trading volume of 2.03M. ARCC’s previous close was $19.34 while the outstanding shares total 437.36M.
Investors have identified the Asset Management company Ares Capital Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $8.31 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Potential earnings growth for Ares Capital Corporation (ARCC)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/04/2021 quarter of the year, Ares Capital Corporation recorded a total of 390.0 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 5.38% coming in sequential stages and their sales for the 08/04/2021 quarter reducing by -12.82%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 241.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 149.0 million. This allows shareholders to hold on to 437.36M with the recently reported earning now reading 0.87 cents per share. This is a figure that compared to analyst’s prediction for their 08/04/2021 (0.43 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.78 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on ARCC sounds very interesting.
Is the stock of ARCC attractive?
In related news, Chief Financial Officer, ROLL PENELOPE F sold 7,000 shares of the company’s stock in a transaction that recorded on Nov 23. The sale was performed at an average price of 16.54, for a total value of 115,780. As the sale deal closes, the General Counsel, VP & Sec., Bloomstein Joshua M now bought 3,000 shares of the company’s stock, valued at 41,250. Also, General Counsel, VP & Sec., Bloomstein Joshua M bought 2,000 shares of the company’s stock in a deal that was recorded on Oct 28. The shares were price at an average price of 13.82 per share, with a total market value of 27,640. Following this completion of acquisition, the Executive Vice President, Arougheti Michael J now holds 10,000 shares of the company’s stock, valued at 139,200. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.63%.
10 out of 13 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Ares Capital Corporation. 0 analysts has assigned a Sell rating on the ARCC stock. The 12-month mean consensus price target for the company’s shares has been set at $20.22.