Ares Capital stock: buy or sell?
December 6th, 2019
Should I buy Ares Capital stock?Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Having a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
None of our preferred buy setups matches with Ares Capital stock situation right now, therefore this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Ares Capital stock a buy?
Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness.Unfortunately, we couldn't detect any rating for AFC stock for the last month.
Ares Capital stock analysis
Shares of Ares Capital grew a tiny 0.39% and closed at $25.85.
Ares Capital shares grew 0.39% to $25.85 on December/6. Since last Oct/31 when AFC stock price broke down the SMA100d line, it slid $-0.71 per share (-2.67%). On Oct/28, AFC hit new all time highs, pushing higher previous ATH of $27.20 recorded on October. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Ares Capital ended this week at $25.85 and stayed stable a slightly fine 0.43%.
Having descending tops is not good news for the long side. Although it's only a warning signal, eyes should be on alert during next weeks to identify possible new risks. Loosing its previous bottom at would confirm the downtrend path. Not so far away is the last price record Ares Capital marked late October. Late December 2018 AFC price bounced up over the SMA of 40 weeks that acted as support stopping new slides.
Ares Capital stock price history
Ares Capital stock went public on April 17th, 2007 with a price of $8.731. Since then, AFC stock grew a 196.10%, with a yearly average of 16.30%. If you had invested $1,000 in Ares Capital stock in 2007, it would worth $1,961.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Ares Capital stock historical price chart
AFC stock reached all-time highs on Oct 28th with a price of $27.20.
Ares Capital stock price targetHow much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we have not detected any price forecast for Ares Capital stock by any trusted analyst.
Financials and fundamental analysis
Earnings date and Earnings per Share, when Ares Capital published its last earnings report, it . As soon as we get its posted EPS from the earnings report, we will extend this review.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, Ares Capital annual turnover rocketed an outstanding 15.58% to $1,261.00 M dollars from $1,091.00 marked in 2017. Improving that, its profit margin (compared to sales) rose to 68.04%, that is $858.00 million. Ares Capital fiscal year ends in December, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Ares Capital TTM sales up to June 2018 were $2,078.00 and earnings $867.00 M USD. If we compare this TTM figures with the last reported annuality, we can esteem Ares Capital business evolution since December 2018: Annual turnover up to June, compared to lastest yearly report, climbed a super good 64.79%. In contrast, profit margin (net income/sales) collapsed at 68.04%.
|2013||$945 M||-||$489 M51.7%||-|
|2014||$989 M||4.60%||$591 M59.8%||20.97%|
|2015||$669 M||-32.32%||$379 M56.6%||-35.92%|
|2016||$806 M||20.43%||$474 M58.8%||25.17%|
|2017||$1,091 M||35.36%||$667 M61.1%||40.72%|
|2018||$1,261 M||15.58%||$858 M68.0%||28.64%|
|TTM||$2,078 M||64.79%||$867 M41.7%||1.05%|
Quarterly financial resultsAres Capital reported $364.00 million in revenues for 2018-Q2, a 2.54% improvement compared to previous quarter. Reported quarter earnings marked $254.00 M with a profit margin of 69.78%. Profit margin raised a 1.61% compared to previous quarter when profit margin was 68.17%. When comparing sales to same quarter last year, Ares Capital sales marked a terrible correction and dropped a -8.08%.
|2017-Q2||$396 M||-||$178 M44.9%||-|
|2017-Q3||$294 M||-25.76%||$139 M47.3%||-21.91%|
|2017-Q4||$1,065 M||262.24%||$232 M21.8%||66.91%|
|2018-Q1||$355 M||-66.67%||$242 M68.2%||4.31%|
|2018-Q2||$364 M||2.54%||$254 M69.8%||4.96%|
|2018-Q3||$307 M||-15.66%||$209 M68.1%||-17.72%|
|2018-Q4||$235 M||-23.45%||$153 M65.1%||-26.79%|
|2019-Q1||$319 M||35.74%||$214 M67.1%||39.87%|
Ares Capital ownershipWhen you are planning to invest in shares of a stock, it's worth to have a look its ownership structure.
Ares Capital shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a of all shares.
For a better understanding, the following table shows ownership data compared to other related stocks:
|Market cap||$0.0 M|
|Total shares||0.0 M|
|Float shares||0.0 M|
|- Institutional holdings (%)||0.0%|
|- Insider holdings (%)||0.0%|
|Shares in short selling||0.0%|
Ares Capital summary
|Friday, December 6th, 2019|
|Day range||$25.79 - $25.89|
|Average true range||$0.16|
|50d mov avg||$26.38|
|100d mov avg||$26.22|
|200d mov avg||$25.61|
Ares Capital performanceStocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. In the following table, we compare Ares Capital performance to :