ARCC stock: buy or sell?

ARCC stock price: $11.29 -5.29% At close on March 27th, 2020

Updated on:
March 27th, 2020

2

After boosting an astounding 6.04% on Mar 26th, Ares Capital closed yesterday at $11.29 and plunged a dreadful -5.29%.

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.

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 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

Daily outlook

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.

ARCC stock chart (daily)

Weekly outlook

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 chart (weekly)

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 target

Nobody 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 Share

Ares 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.
ARCC earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.45n/a
2017-Q32017-11-020.350.362.9%
2017-Q42018-02-130.370.382.7%
2018-Q12018-05-020.370.395.4%
2018-Q22018-08-010.390.390.0%
2018-Q32018-10-310.40.4512.5%
2018-Q42019-02-120.410.459.8%
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 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%.

ARCC 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%

Quarterly financial results

Ares 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.
ARCC 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 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:

ARCC
Market cap$4.9 B
Total shares431.1 M
Float shares0.0 M
  - Institutional holdings (%)36.1%
  - Insider holdings (%)0.5%
Shares in short selling0.0%

ARCC summary

Friday, March 27th, 2020
Open$11.53
Close$11.29
Day range$10.72 - $12.38
Previous close$11.92
Session gain-5.29%
Average true range$2.08
50d mov avg$16.34
100d mov avg$17.13
200d mov avg$17.20
Daily patternlt03a
Weekly pattern

Ares Capital performance

Stocks 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.
Stock3m6m12m
ARCCAres Capital-37.66%-36.68%-27.44%

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.