ARCC stock: buy or sell?
January 24th, 2020
Should I buy ARCC stock?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to choose your own trading strategy that matches with 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 work for 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 published 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 slightly fell -1.15% to $18.90 after yesterday all time highs.
After topping to all time highs on Thursday, Ares Capital slightly fell -1.15% on Jan/24 to $18.90. On Thursday, ARCC hit a new all time high, pushing higher than on Wednesday tops. Check different trading setups that use ATHs as triggers.
Despite of the red candle ($18.90, -0.32%), Ares Capital peaked new all time high at $19.20.
ARCC shows a strong mid-term uptrend with several rising tops and rising bottoms. Since its last bottom late September 2019, ARCC climbed unceasignly breaking out to new all time highs. Since late January 2019 when ARCC stock price broke up the SMA40w line, it gained $4.22 (28.75%). Late February 2019, SMA10w and SMA20w crossed up triggering a rise of 18.87%.
ARCC stock price history
ARCC stock went public on October 5th, 2004 with a price of $2.891. Since then, ARCC stock grew a 554.00%, with an average of 36.90% per year. If you had invested $1,000 in ARCC stock in 2004, it would worth $5,540.00 today.
1: Adjusted price after possible price splits or reverse-splits.
ARCC stock historical price chart
ARCC stock reached all-time highs on Thursday with a price of $19.20.
ARCC stock price target is $19.80Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We have 4 price targets for ARCC stock released in the last month:
|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 ShareAres Capital presented beatiful results for 2018-Q4 on February. Ares Capital raised Earnings per Share (EPS) by 9.80%, beating analysts estimates of $0.41. Ares Capital posted $0.45.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, Ares Capital annual sales boosted an outstanding 15.58% to $1,261.00 million dollars from $1,091.00 marked in 2017. 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 posted $235.00 million in sales for 2018-Q4, a -23.45% less compared to previous quarter. Reported quarter income marked $153.00 million with a profit margin of 65.11%. Profit margin declined a -2.97% compared to previous quarter when profit margin was 68.08%. When comparing revenues to same quarter last year, Ares Capital sales marked a spooky loss and collapsed a -77.93%. Looking back to recent quarterly results, Ares Capital posted 2 negative 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 a stock, it's worth to overview 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, 0.52% of all outstanding shares are owned by its staff.
In case of Ares Capital stock, 36.39% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions).
For a better context understanding, the following table shows ownership data compared to other related stocks:
|Market cap||$8.1 B|
|Total shares||427.2 M|
|Float shares||0.0 M|
|- Institutional holdings (%)||36.4%|
|- Insider holdings (%)||0.5%|
|Shares in short selling||0.0%|
|Friday, January 24th, 2020|
|Day range||$18.89 - $19.17|
|Average true range||$0.17|
|50d mov avg||$18.55|
|100d mov avg||$18.35|
|200d mov avg||$17.70|
Ares Capital performanceTo better understand Ares Capital performance you must becnhmark its gains with other related stocks in same sector or industry. In the following table, we compare Ares Capital performance to :