Ares Capital stock: buy or sell?

AFC stock price: $26.33 -1.27% At close on February 25th, 2020

Updated on:
February 25th, 2020

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After several days of continuous hikes in past weeks, Ares Capital depreciated -1.27% to $26.33. Tuesday was the third red session in a row, sliding in full a -2.78%.

Should I buy Ares Capital stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. That's why is so important to choose your own trading plan that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, 2 buy setups match with Ares Capital stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Ares Capital stock a buy?

Financial institutions and banks post stock ratings everyday. Unfortunately, we couldn't detect any rating for AFC stock for the last month.

Ares Capital stock analysis

Daily outlook

Ares Capital depreciated -1.27% today to $26.33 after topping to all time highs on Friday.

Ares Capital depreciated -1.27% to $26.33 after topping to all time highs on Friday. For the last 33 days when SMA50d and SMA100d crossed up, AFC price slipped $-0.62 per share (-2.30%). On December AFC price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock. On Friday, AFC hit new all time highs, pushing higher previous ATH of $27.13 recorded on February 11th. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

AFC stock chart (daily)

Weekly outlook

Ares Capital shares declined -2.23% this week, ending at $26.33.

Ares Capital stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last all-time high Ares Capital marked last week. Since mid January when SMA10w and SMA20w crossed up, AFC price slipped $-0.54 per share (-2.01%). Since late December 2019 when AFC stock price broke up the SMA20w line, it gained $0.51 (1.98%).

AFC stock chart (weekly)

Ares Capital stock price history

Ares Capital IPO was on April 17th, 2007 at $8.59 per share1. Since then, AFC stock grew a 206.50%, with an average of 17.20% per year. If you had invested right after AFC's IPO a $1,000 in Ares Capital stock in 2007, it would worth $2,065.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Ares Capital stock historical price chart

AFC stock reached all-time highs on Friday with a price of $27.16.

Ares Capital stock price target

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. 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. You should not follow the analysts' AFC stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we have not found any price target for Ares Capital stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

After publishing its last earnings report , Ares Capital . As soon as we get its posted EPS from the earnings report, we will extend this review.
AFC earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/an/an/a
2017-Q3-n/an/an/a
2017-Q42018-02-28n/an/an/a
2018-Q1-n/an/an/a
2018-Q22018-09-26n/an/an/a
2018-Q3-n/an/an/a
2018-Q4-n/an/an/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual revenues report draw an extraordinary growth of 15.58% to $1,261.00 million USD. In contrary, its income margin (compared to revenues) soared to 68.04%, that is $858.00 million.

Ares Capital presents anual results in December, and to evaluate 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 dollars. If we compare this TTM figures with the last reported annuality, we can esteem Ares Capital business evolution since December 2018: Annual revenues up to June, compared to lastest yearly report, boosted an amazing 64.79%. By contrast, profit margin (net income/sales) plummed at 68.04%.

AFC annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$945 M-$489 M51.7%-
2014$989 M4.60%$591 M59.8%20.97%
2015$669 M-32.32%$379 M56.6%-35.92%
2016$806 M20.43%$474 M58.8%25.17%
2017$1,091 M35.36%$667 M61.1%40.72%
2018$1,261 M15.58%$858 M68.0%28.64%
TTM $2,078 M64.79%$867 M41.7%1.05%

Quarterly financial results

Ares Capital reported $364.00 M in revenues for 2018-Q2, a 2.54% up compared to previous quarter. Reported quarter income marked $254.00 M with a profit margin of 69.78%. Profit margin stepped up a 1.61% compared to previous quarter when profit margin was 68.17%. When comparing revenues to same quarter last year, Ares Capital sales marked a terrible slide and slipped a -8.08%.
AFC quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$396 M-$178 M44.9%-
2017-Q3$294 M-25.76%$139 M47.3%-21.91%
2017-Q4$1,065 M262.24%$232 M21.8%66.91%
2018-Q1$355 M-66.67%$242 M68.2%4.31%
2018-Q2$364 M2.54%$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 M35.74%$214 M67.1%39.87%

Ares Capital ownership

When you are planning to buy a company, it's worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Ares Capital, of all outstanding shares are owned by its staff.

For a better context understanding, the next table shows ownership data compared to other related companies:

AFC
Market cap$0.0 M
Total shares0.0 M
Float shares0.0 M
  - Institutional holdings (%)0.0%
  - Insider holdings (%)0.0%
Shares in short selling0.0%

Ares Capital summary

Tuesday, February 25th, 2020
Open$26.80
Close$26.33
Day range$26.33 - $26.80
Previous close$26.67
Session gain-1.27%
Average true range$0.19
50d mov avg$26.62
100d mov avg$26.26
200d mov avg$25.79
Daily pattern
Weekly pattern lt06a

Ares Capital performance

To better understand Ares Capital performance you must becnhmark its gains with other related stocks in same sector or industry. We selected as the bechmarking frame for Ares Capital stock.
Stock3m6m12m
AFCAres Capital3.99%3.17%9.25%

Ares Capital competitors

Unfortunately, we could not find any public company that could be defined as Ares Capital competitor. This doesn't mean Ares Capital does not have any competitor in the market, it's just we could not detected it.