ARCC stock: buy or sell?
March 27th, 2020
Should I buy ARCC stock?Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
Currently, Ares Capital stock doesn't match any of these trading strategies, so our recommendation is not to buy.
|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 posted by financial analysts to indicate a particular stock's attractiveness.Unfortunately, we couldn't detect any rating for ARCC stock for the last 30 days.
ARCC stock analysis
After boosting an astounding 6.04% on March/26, Ares Capital closed yesterday at $11.29 and plunged a dreadful -5.29%.
After boosting an astounding 6.04% on March/26, Ares Capital closed yesterday at $11.29 and plunged a dreadful -5.29%. Since price and SMA200d lines crossed down on Mar/5, ARCC fell $-6.23 per share (-35.56%). On February, ARCC hit new all time highs, pushing higher previous ATH of $18.78 recorded on February. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
After sliding a dreadful -41.00% in a week last week, Ares Capital closed this week at $11.29 and boosted an extraordinary 8.66%.
Not so far away is the last price record Ares Capital marked by mid February, but since then it dropped a 39.91%. Since price and 40-weeks moving average lines crossed down late February, ARCC fell $-7.18 per share (-38.87%). Stocks below the 40w moving average line are usually not recommended for average traders.
ARCC stock price history
ARCC stock went public on October 5th, 2004 with a price of $2.811. Since then, ARCC stock surged a 301.80%, with a yearly average of 20.10%. If you had invested $1,000 in ARCC stock in 2004, it would worth $3,018.00 today.
1: Adjusted price after possible price splits or reverse-splits.
ARCC stock historical price chart
ARCC stock reached all-time highs on February with a price of $18.79.
ARCC stock price targetNobody can reliably foresee how stock prices may evolve in the future. 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 prediction for Ares Capital stock by any trusted analyst.
Financials and fundamental analysis
Earnings date and Earnings per ShareAres Capital presented nice results for 2018-Q4 . Ares Capital stepped up Earnings per Share (EPS) by 9.80%, beating experts of $0.41. Ares Capital posted $0.45.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, Ares Capital annual revenues rocketed a super good 15.58% to $1,261.00 M USD from $1,091.00 marked in 2017. When comparing 2018 vs 2017, nonetheless, profit margin (that is, the net income divided by revenues) soared a 6.90% to 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%|
Quarterly financial resultsAres Capital reported $235.00 million in sales for 2018-Q4, a -23.45% decline compared to previous quarter. Reported quarter income marked $153.00 M with a profit margin of 65.11%. Profit margin slightly fell a -2.97% compared to previous quarter when profit margin was 68.08%. When comparing sales to same quarter last year, Ares Capital sales marked a scary correction and collapsed a -77.93%. Looking back to recent quarterly results, Ares Capital posted 2 positive quarters in a row.
|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 buy shares of a stock, it's always worth to review its ownership structure.
Ares Capital shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.52% of all shares.
In case of Ares Capital stock, 36.12% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions).
The following table compares ownership indicators for other stocks related to Ares Capital:
|Market cap||$4.9 B|
|Total shares||431.1 M|
|Float shares||0.0 M|
|- Institutional holdings (%)||36.1%|
|- Insider holdings (%)||0.5%|
|Shares in short selling||0.0%|
|Friday, March 27th, 2020|
|Day range||$10.72 - $12.38|
|Average true range||$2.08|
|50d mov avg||$16.34|
|100d mov avg||$17.13|
|200d mov avg||$17.20|
Ares Capital performanceStocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We selected as the bechmarking frame for Ares Capital stock.