Ares Capital Corporation (NASDAQ:ARCC) sank as low as $16.3 Thursday before getting settled at $16.71. The -1.24 percent decrease called for market cap to move at $7.12B. The price went up as high as $16.3 before retreating. Trading activity significantly improved as the volume at ready counter increased to 4,765,798 shares versus 1,997,775 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,883,901 shares. The stock is now 11.18% above against its bear-market low of $15.03 on February 06, 2018. It has retreated -5.51% since it’s 52-week high of $17.63 reached in November. Now the market price is up 3.79% on the year and up 6.3% YTD.
ARCC’s 50 day simple moving average (SMA 50) price is $16.88 and its 200-day simple moving average (SMA 200) price is $16.67. The company’s stock currently has a total float of 0 shares. Its weekly volatility is hovering around 1.74% and felt 1.43% volatility in price over a month. On the upside, the share price will test short term resistance at around $16.99. On a downside, the stock is likely to find some support, which begins at $16.37. The failure to get near-term support could push it to $16.02.
Separately, it has been reported that multiple insider activity took place at Ares Capital Corporation (ARCC). CFO Roll Penelope F sold 6,000 shares for $67,452 in transaction occurred on 2018/11/20. After making this transaction, the CFO owns a direct stake of 100,560 shares, worth $1,127,123, as per the last closing price. On 2018/11/20 Bartlett Steve, Director at ARCC, purchased 200 shares at an average price of $17.08 per share. The new stake is valued at $177,126.
Director, Bartlett Steve had invested in 200 shares for $10,400 through a trade on 2018/10/22. Following this activity, the insider holds 3,260 shares worth $173,784 as of recent close. Wall Street’s most bullish Ares Capital Corporation (NASDAQ:ARCC) analysts are predicting the share price to blow past $20 per share during the next 12 months. The current median share price forecast by them is $18.5, suggesting that the stock could increase 10.71% in that time frame. The average price target of $18.44 calls for a nearly 10.35% increase in the stock price.
It had seen a new analyst call from Citigroup, which initiated the stock at Buy on August 23. Analysts at Compass Point, started covering the stock on December 06 with a Buy rating. Analysts at Oppenheimer, made their first call about the stock on September 21, recommending it is Outperform. National Securities, released new analyst coverage on June 28, calling the stock is Neutral.
When looking at valuations, Ares Capital Corporation (ARCC) has a cheap P/E of 9x as compared to industry average of 10.06x. Moreover, it trades for 9.83 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.99x price/book and 5.69x price/sales.
Shares of Ares Capital Corporation (ARCC) have gained 4% since the company’s last earnings report. Over the past 12 fiscal quarters, Ares Capital Corporation (NASDAQ:ARCC) has topped consensus earnings estimates in 8 quarters (66%), missed earnings in 3 quarters (25%), whereas at 1 occasion EPS met analyst expectations. ARCC last reported earnings on October 31, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.45 per share, -96.63% change on the same period last year. That was better than consensus for $0.4. Revenue for the recent quarter stood at $342 million, up 16% on last year and above the $318.51 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $318.47 million to $344.98 million, which should be compared with $327.75 million generated last year. EPS is seen in a range of $0.39 to $0.44, against the $0.41 reported a year ago.