Ares Capital Corporation (NASDAQ: ARCC) Is Either An Instant Disaster Or A Huge Opportunity.

In the latest trading session, 1.58 million Ares Capital Corporation (NASDAQ:ARCC) shares changed hands as the company’s beta touched 1.03. With the company’s most recent per share price at $20.33 changing hands around $0.09 or 0.44% at last look, the market valuation stands at $12.34B. ARCC’s current price is a discount, trading about -2.56% off its 52-week high of $20.85. The share price had its 52-week low at $17.53, which suggests the last value was 13.77% up since then. When we look at Ares Capital Corporation’s average trading volume, we note the 10-day average is 3.88 million shares, with the 3-month average coming to 3.79 million.

Ares Capital Corporation (NASDAQ:ARCC) trade information

Instantly ARCC is in green as seen in intraday trades today. With action 1.96%, the performance over the past five days has been green. The jump to weekly highs of 20.40 added 0.44% to the stock’s daily price. The company’s shares are showing year-to-date upside of 1.50%, with the 5-day performance at 1.96% in the green. However, in the 30-day time frame, Ares Capital Corporation (NASDAQ:ARCC) is 0.54% up. Looking at the short shares, we see there were 28.0 million shares sold at short interest cover period of 6.47 days.

Ares Capital Corporation (ARCC) estimates and forecasts

Data shows that the Ares Capital Corporation share is performing relatively much better than most of its peers within the same industry. As can be gleaned from the statistics, the company’s share value shot 5.78% over the past 6 months, a -1.27% in annual growth rate that is considerably higher than the industry average of -4.90%. Moreover, analysts have looked to higher expectations by upgrading its fiscal year 2024 revenue estimates. The rating firms predict current quarter revenue for Ares Capital Corporation will rise 3.50%, while the growth in revenue is estimated to hit 3.40% for the next quarter. Year-over-year growth is forecast to reach -2.40% down from the last financial year.

Consensus estimates given by 9 financial analysts project the company’s revenue in the current quarter to hit an average of $699.55 million. 9 analysts are of the opinion that Ares Capital Corporation’s revenue for the quarter ending Jun 2024 will be $705.12 million. The company’s revenue for the corresponding quarters a year ago was $618 million and $622.05 million respectively. According to analysts, the company will likely register a growth in its current quarter sales, forecast at 13.20%. The estimates for the next quarter sales put growth at 13.40%.

ARCC Dividends

Ares Capital Corporation is expected to release its next quarterly earnings report between April 23 and April 29. The 9.44% annual yield figure for the share gives it an annual dividend of 1.92. It is important to note, however, that the 9.44% dividend yield ratio should serve as a guide only, as you should also take into consideration many other aspects of a company’s operations and fundamentals before making any investment decision.

Ares Capital Corporation (NASDAQ:ARCC)’s Major holders

If we look at who the major shareholders are, we find that insiders hold 0.59% of Ares Capital Corporation shares while 29.32% of the shares are in the hands of institutional holders. The share float percentage for the stock currently stands at 29.50%. There are 29.32% institutions holding the Ares Capital Corporation stock share, with Royal Bank of Canada the top institutional holder. As of Jun 29, 2023, the company held 2.15% of the shares, roughly 12.0 million ARCC shares worth $225.47 million.

Morgan Stanley holds the second largest percentage of outstanding shares, with 2.02% or 11.25 million shares worth $211.4 million as of Jun 29, 2023.

Among Mutual Funds, the top two as of Sep 29, 2023 were VanEck ETF Trust -VanEck BDC Income ETF and Columbia Fds Ser Tr II-Columbia Flexible Capital Income Fd. With 7.43 million shares estimated at $144.61 million under it, the former controlled 1.33% of total outstanding shares. On the other hand, Columbia Fds Ser Tr II-Columbia Flexible Capital Income Fd held about 0.14% of the shares, roughly 0.8 million shares worth around $14.99 million.