Ares Capital stock: buy or sell?

AFC stock price: $25.85 0.39% At close on December 6th, 2019

Updated on:
December 6th, 2019

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Shares of Ares Capital grew a tiny 0.39% and closed at $25.85.

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

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

Daily outlook

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.

AFC stock chart (daily)

Weekly outlook

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.

AFC stock chart (weekly)

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 target

How 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.
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

In 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%.

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 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%.
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 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:

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

Friday, December 6th, 2019
Open$25.75
Close$25.85
Day range$25.79 - $25.89
Previous close$25.75
Session gain0.39%
Average true range$0.16
50d mov avg$26.38
100d mov avg$26.22
200d mov avg$25.61
Daily pattern
Weekly pattern lt01a

Ares Capital performance

Stocks 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 :
Stock3m6m12m
AFCAres Capital-2.12%4.11%9.35%

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.