ARCC stock: buy or sell?
August 23rd, 2019
Should I buy ARCC 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. 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. 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 right now:
|New all-time high||Yes|
|New 52 week high||Yes|
|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.At Stocks2.com, we gathered 5 ratings published for ARCC stock in the last month. The general sentiment of these ratings is bullish for ARCC stock, with 4 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-8-19||BMO Capital Markets||Market Perform||Outperform|
|2019-2-13||JMP Securities||Market Outperform||Market Outperform|
ARCC stock analysis
Ares Capital eased -1.69% to $18.57 after yesterday all time highs.
Ares Capital eased -1.69% to $18.57 after reaching all time highs yesterday. From a daily perspective, ARCC is in a short term uptrend after plotting its last bottom ($18.28, on August/14) higher than the previous bottom, and its last top ($19.02, on Monday) also over the previous top. Now trading in between its last bottom and last top ARCC might consolidate in a plain range, waiting to break out over $19.02 or down under $18.28. Yesterday, ARCC hit a new all time high, pushing higher than on Monday tops. Check different trading setups that use ATHs as triggers.
Ares Capital closed this week at $18.57 after reaching a new all time high ($19.02) even it couldn't close with gains and remained constant an ugly -0.38%. After 4 weeks soaring, this week declined a -0.38%.
Observing the weekly chart, ARCC marked an uptrend of rising tops and rising bottoms. Since its last top late July at $18.83, price slid and bounced up back from $17.96. Breaking down under $17.96 would cancel the current uptrend and it might test lower supports. Note that $18.83 might act as a resistance line. Late January ARCC price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Late February, SMA10w and SMA20w crossed up triggering a rise of 11.73%.
ARCC stock price history
ARCC IPO was on October 5th, 2004 at $3.02 per share1. Since then, ARCC stock surged a 514.90%, with a yearly average of 36.80%. If you had invested right after ARCC's IPO a $1,000 in ARCC stock in 2004, it would worth $5,149.00 today.
1: Adjusted price after possible price splits or reverse-splits.
ARCC stock historical price chart
ARCC stock reached all-time highs yesterday with a price of $19.02.
ARCC stock price target is $19.80Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. 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 found 4 price forecasts for ARCC stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-8-19||BMO Capital Markets||Upgrades||$19.00||$20.00||5.3%|
|2019-7-31||Raymond James||Raises Target||$19.00||$19.50||2.6%|
|2019-2-13||National Securities||Raises Target||$19.00||$20.00||5.3%|
|2019-2-13||JMP Securities||Raises Target||$19.00||$19.50||2.6%|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn February, Ares Capital reported its latest financial data, posting a beatiful gain for the Earnings per Share (EPS). Analyst were expecting $0.41 per share, but Ares Capital posted $0.45.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual turnover report draw an outstanding increase of 15.58% to $1,261.00 M USD. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) rose 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 earnings marked $153.00 million 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 hair-raising correction and plunged 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 invest in shares of a stock, it's 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 0.48% of all shares.
In case of Ares Capital stock, 40.30% 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||$7.9 B|
|Total shares||426.3 M|
|Float shares||0.0 M|
|- Institutional holdings (%)||40.3%|
|- Insider holdings (%)||0.5%|
|Shares in short selling||0.0%|
|Friday, August 23rd, 2019|
|Day range||$18.50 - $18.87|
|Average true range||$0.27|
|50d mov avg||$18.25|
|100d mov avg||$17.75|
|200d mov avg||$16.80|
Ares Capital performanceTo better understand Ares Capital performance you must compare its gains with other related stocks in same sector or industry. For Ares Capital, the comparison is made against .