JP Morgan raised the price target for the Ares Capital Corporation (NASDAQ:ARCC) stock from “an Overweight” to “a Neutral”. The rating was released on December 10, 2020. We previously noted in another research note published on December 10, 2020 by Barclays that downgraded the stock from an Overweight to an Equal weight with a price target of $17 for ARCC stock. The stock was upgraded by Raymond James, who disclosed in a research note on April 16, 2020, from Mkt Perform to Outperform and set the price objective to $14. In their research brief published April 13, 2020, BofA/Merrill analysts upgraded the Ares Capital Corporation stock from Neutral to Buy with a price target of $16.
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Historical Earnings Surprises and Revenue Forecasts
Profit is the most critical financial performance measure. Every investor in a business is looking forward to the earnings report as stock price to increase when earnings exceed market expectations and progressively decrease when earnings do not meet expectations. The firm reported an earnings per share (EPS) of $0.43 during the last quarter as opposed to a consensus estimate of $0.42, which indicates the company beat its estimate by $0.01, which implies that the company surprised the market by 2.40%. It appears that the average earnings per share estimate for the current quarter (ending in Jun 2021) is $0.43. This is an average of 15 analysts’ earnings, where the high earnings per share estimate is $0.45 and the low earnings per share estimate is $0.41. According to 9 analyst estimates, an average revenue estimate of $387.96M is projected for the current quarter with a high revenue estimate of $396.79M and a low estimate of $380.21M.
The latest trade, Performances and Moving Averages give us the following Picture
The share price of Ares Capital Corporation (NASDAQ:ARCC) dipped -1.84% to close Friday’s market session at $19.25, lower as compared to yesterday’s close. The stock price fluctuated between $19.23 and $19.65 throughout the trading session with the volume trading being 2402483 shares, which represented a significant variation when compared to the three months average volume of 2.23 million shares. The firm’s stock price fluctuated -1.58% within the last five trades and 2.89% within the last 30 trades, which was a significant change from the beginning of this year. Despite the fact that the share price increased 38.49% in the last 6 months and 11.27% was added to its value over the previous 3 months. ARCC stock is trading at a margin of -0.70%, 2.07% and 18.14% apart from the 20-Day, 50-Day and 200-Day Simple Moving Average prices.
As of the close of trading, ARCC deals in the Financial domain. The stock is trading -2.58 percent below its 52-week high and 61.36 percent above its 52-week low. For example, looking both at the price and the high and low measurements of 52 weeks will give you a clearer picture of the direction the price is heading. The firm’s Weighted Alpha is 43.53. A positive weighted alpha indicates the firm has done well over the course of the year, whereas one below 0 indicates that the firm has done poorly.
What Does Ares Capital Corporation’s Profitability and Valuation Ratios Tell Us About the Stock?
The stock’s market cap achieved a total value of $8.42 billion as of the last trading session. Market capitalization is the total value of all outstanding shares of a corporation and it is used to measure a company’s market value. The price-to-earnings ratio for Ares Capital Corporation (NASDAQ:ARCC) is 16.89. The price-to-earnings ratio is a method of assessing corporate values by comparing them to their per-share profit. Forward P/E stands at 10.81. Forward price-to-earnings is calculated using predicted earnings for the next financial year’s P/E determination. The stock has achieved an effective Price-to-Sales Ratio of 5.57 that mirrors the cost to be found for sales by the market. The firm managed a Price-to-Book ratio of 1.13, which equates the market value of a stock with its book value.
Is Insider Trading a Real Thing?
Almost all investors and traders prefer to invest in shares controlled by the management of a corporation as a management company will be more likely to run the business itself and to never conduct things against the management’s desires and will always try to do what is best for their shareholders. Currently, 0.63 percent of Ares Capital Corporation shares are owned by insiders, and 31.66 percent are held by financial institutions. ROLL PENELOPE F, the Chief Financial Officer at Ares Capital Corporation (ARCC) has sold 7,000 shares of firm on Nov 23 at a price of $16.54 against the total amount of $0.12 million. In another inside trade, Bloomstein Joshua M, General Counsel, VP & Sec. of Ares Capital Corporation (NASDAQ:ARCC) bought 3,000 shares of the firm on Oct 30 for a total worth of $41250.0 at a price of $13.75. An inside trade which took place on Oct 28, General Counsel, VP & Sec. of Ares Capital Corporation Bloomstein Joshua M bought 2,000 shares of firm against total price of $27640.0 at the cost of $13.82 per share.