I recommend waiting for a better discount before investing in Ares Capital Corporation (ARCC).

The price of Ares Capital Corporation (NASDAQ: ARCC) closed at 18.52 in the last session, down -0.54% from day before closing price of $18.62. In other words, the price has decreased by $-0.10 from its previous closing price. On the day, 1884433 shares were traded. ARCC reached its highest trading level at $18.91 during the session, while it also had its lowest trading level at $18.52.

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Ratios:

We take a closer look at ARCC’s different ratios to gain a better understanding of the stock.

Upgrades & Downgrades

On April 27, 2022, JP Morgan Upgraded its rating to Overweight which previously was Neutral but kept the price unchanged to $22.

On March 07, 2022, Hovde Group started tracking the stock assigning a Market Perform rating and target price of $22.50.Hovde Group initiated its Market Perform rating on March 07, 2022, with a $22.50 target price.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Sep 14 when ROLL PENELOPE F bought 2,500 shares for $19.04 per share. The transaction valued at 47,600 led to the insider holds 54,500 shares of the business.

HENSON MARY BETH bought 9,000 shares of ARCC for $177,930 on Aug 31. The Director now owns 20,000 shares after completing the transaction at $19.77 per share. On Aug 03, another insider, ROLL PENELOPE F, who serves as the Chief Financial Officer of the company, bought 25,000 shares for $19.77 each. As a result, the insider paid 494,250 and bolstered with 52,000 shares of the company.

Valuation Measures:

As of this moment, Ares’s Price-to-Earnings (P/E) ratio for their current fiscal year is 8.42, and their Forward P/E ratio for the next fiscal year is 8.95. For the stock, the TTM Price-to-Sale (P/S) ratio is 4.95 while its Price-to-Book (P/B) ratio in mrq is 0.98.

Stock Price History:

Over the past 52 weeks, ARCC has reached a high of $22.89, while it has fallen to a 52-week low of $17.00. The 50-Day Moving Average of the stock is 19.71, while the 200-Day Moving Average is calculated to be 20.25.

Shares Statistics:

According to the various share statistics, ARCC traded on average about 2.52M shares per day over the past 3-months and 2.53M shares per day over the past 10 days. A total of 505.44M shares are outstanding, with a floating share count of 497.17M. Insiders hold about 1.40% of the company’s shares, while institutions hold 33.74% stake in the company. Shares short for ARCC as of Jul 14, 2022 were 20.71M with a Short Ratio of 7.24, compared to 20.02M on Jun 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 4.17% and a Short% of Float of 4.20%.

Dividends & Splits

The forward annual dividend rate for ARCC is 1.72, which was 1.20 in the trailing 12 months. Against a Trailing Annual Dividend Yield of 6.44%, it implies a Forward Annual Dividend Yield of 8.87%. The stock’s 5-year Average Dividend Yield is 9.16.

Earnings Estimates

The company has 13 analysts who recommend its stock at the moment. On average, analysts expect EPS of $0.48 for the current quarter, with a high estimate of $0.52 and a low estimate of $0.43, while EPS last year was $0.47. The consensus estimate for the next quarter is $0.5, with high estimates of $0.55 and low estimates of $0.44.

Analysts are recommending an EPS of between $1.94 and $1.75 for the fiscal current year, implying an average EPS of $1.85. EPS for the following year is $2.04, with 13 analysts recommending between $2.31 and $1.76.

Revenue Estimates

According to 11 analysts, the current quarter’s revenue is expected to be $498.94M. It ranges from a high estimate of $540M to a low estimate of $446.6M. As of the current estimate, Ares Capital Corporation’s year-ago sales were $442M, an estimated increase of 12.90% from the year-ago figure. For the next quarter, 11 analysts are estimating revenue of $515.29M, a decrease of -23.50% less than the figure of $12.90% in the same quarter last year. There is a high estimate of $557.61M for the next quarter, whereas the lowest estimate is $464.84M.

A total of 12 analysts have provided revenue estimates for ARCC’s current fiscal year. The highest revenue estimate was $2.01B, while the lowest revenue estimate was $1.79B, resulting in an average revenue estimate of $1.93B. In the same quarter a year ago, actual revenue was $2.68B, down -27.90% from the average estimate. Based on 12 analysts’ estimates, the company’s revenue will be $2.11B in the next fiscal year. The high estimate is $2.3B and the low estimate is $1.93B. The average revenue growth estimate for next year is up 9.20% from the average revenue estimate for this year.