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Ares Capital to Offer 10M Common Stock; Shares Fall

Shares of Ares Capital Corporation (Nasdaq:ARCC) dropped 2.5% in Wednesday’s extended trading session after it announced plans to make a public offering of 10 million shares of its common stock.

Ares Capital is a specialty finance company that provides direct loans and other investments in private middle-market companies. The company has given the underwriters an option to purchase up to an additional 1.5 million shares of common stock.

Ares Capital seeks to utilize net proceeds from the shares sale to repay certain outstanding indebtedness under its debt facilities.

Notably, Morgan Stanley & Co. LLC, BofA Securities, UBS Investment Bank, RBC Capital Markets, LLC and Wells Fargo Securities are acting as joint lead book-running managers for this offering.

Ares Capital Earnings

The company’s EPS for the fourth quarter of 2021 is estimated to reach $0.47. ARCC stock earnings have surpassed estimates in all quarters since the second quarter of 2020. Given the impressive earnings surprise history, the company is expected to beat estimates again in the upcoming results.

Overall, the analysts are bullish on the stock and have a Strong Buy consensus rating based on 9 Buys and 1 Hold.

Positive Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Ares Capital, with 5% of investors on TipRanks increasing their exposure to ARCC stock over the past 30 days.

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