Alan Rechtschaffen, senior portfolio manager at UBS Global Wealth Management, remains bullish on the stock market ( SP500 ), ( COMP:IND ), ( DJI ) despite gold prices ( XAUUSD:CUR ) surging past $5,000. In an interview with CNBC, Rechtschaffen argued that elevated gold prices ( XAUUSD:CUR ) are not incompatible with continued equity gains, maintaining that multiple transformational forces will pus...
Alan Rechtschaffen, senior portfolio manager at UBS Global Wealth Management, remains bullish on the stock market ( SP500 ), ( COMP:IND ), ( DJI ) despite gold prices ( XAUUSD:CUR ) surging past $5,000. In an interview with CNBC, Rechtschaffen argued that elevated gold prices ( XAUUSD:CUR ) are not incompatible with continued equity gains, maintaining that multiple transformational forces will push stocks higher through year-end. The strategist projects a base case of 7,700 for the S&P 500 ( SP500 ) by the end of the year, and in a more optimistic scenario, Rechtschaffen sees the index potentially reaching 8,300 to 8,400 if market conditions align favorably. Rechtschaffen identified what he calls a “trio of opportunities” driving the market higher: artificial intelligence, longevity, and power. These transformational themes will benefit not only technology creators but also end users across every industry. While acknowledging that many investors are using gold ( XAUUSD:CUR ) as a hedge amid civil discontent and other uncertainties, Rechtschaffen maintained his conviction that risk-on and risk-off assets can rise simultaneously. “But we don’t believe that a high gold price of $5,000 [per ounce] is incongruous with a higher stock market,” he said. “Gold ( XAUUSD:CUR ) is being used as a hedge by a lot of people, and that’s why it’s over 5,000.” More on the markets Another Government Shutdown Looms, I'm Buying Gold Traders Defensively Positioned As Equities Retrace From Record Highs Whale's Methodology: Investing Through The Lens Of Volatility (I) Morgan Stanley’s 10 predictions for investing in 2026 Earnings season has been good but not great, BofA says
Quantum computing firm IonQ has agreed to buy SkyWater Technology in a $1.8 billion cash-and-stock deal. IonQ CEO Niccolo de Masi discusses the reasoning behind this latest acquisition with Caroline Hyde and Ed Ludlow on “Bloomberg Tech.” (Source: Bloomberg)
Quantum computing firm IonQ has agreed to buy SkyWater Technology in a $1.8 billion cash-and-stock deal. IonQ CEO Niccolo de Masi discusses the reasoning behind this latest acquisition with Caroline Hyde and Ed Ludlow on “Bloomberg Tech.” (Source: Bloomberg)
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In trad...
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In trading on Monday, shares of Coinbase Global Inc (Symbol: COIN) entered into oversold territory, hitting an RSI reading of 29.4, after changing hands as low as $210.89 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 56.0. A bullish investor could look at COIN's 29.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of COIN shares: Looking at the chart above, COIN's low point in its 52 week range is $142.58 per share, with $444.645 as the 52 week high point — that compares with a last trade of $213.93. Find out what 9 other oversold stocks you need to know about » Also see: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In trad...
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In trading on Monday, shares of Verra Mobility Corp (Symbol: VRRM) entered into oversold territory, hitting an RSI reading of 29.97, after changing hands as low as $20.50 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 56.0. A bullish investor could look at VRRM's 29.97 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of VRRM shares: Looking at the chart above, VRRM's low point in its 52 week range is $19.51 per share, with $27.20 as the 52 week high point — that compares with a last trade of $20.60. Find out what 9 other oversold stocks you need to know about » Also see: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The Conservatives have withdrawn a claim that Suella Braverman’s defection to Reform UK on Monday was connected to her mental health after criticism from across the political spectrum. Earlier, in an official statement it now says was “sent out in error”, the party said: “It was always a matter of when, not if, Suella would defect. The Conservatives did all we could to look after Suella’s mental h...
The Conservatives have withdrawn a claim that Suella Braverman’s defection to Reform UK on Monday was connected to her mental health after criticism from across the political spectrum. Earlier, in an official statement it now says was “sent out in error”, the party said: “It was always a matter of when, not if, Suella would defect. The Conservatives did all we could to look after Suella’s mental health, but she was clearly very unhappy.” The statement was shared with journalists by a Conservative party spokesperson and swiftly condemned by MPs, peers and mental health charities for its brutality and indiscretion, as well as for trivialising and weaponising mental health struggles. Speaking to GB News after the statement was released, Nigel Evans, a former Conservative MP, said it was an “absolute disgrace” and “completely underhand”. Stewart Jackson, a Tory peer, wrote on X: “What a nasty and unpleasant statement from @Conservatives. That’s another few thousand votes they’ve lost.” The Conservative spokesperson subsequently apologised for the error and circulated a statement that omitted the reference to Braverman’s mental health. Sojan Joseph, a Labour MP and the chair of the all-party parliamentary group on mental health, described the comments as “frankly appalling”. He added: “Conflating a political defection with mental illness downplays an incredibly important issue and undermines the hard work of mental health staff and the genuine struggle of people living with mental health issues.” A Reform source told the Guardian that the Tory statement was “not true” and “a gross affront to millions of people in this country”. The source said: “Whether you like Suella or not, she is a Cambridge-educated barrister who has served in a series of extraordinary senior positions in this country. “To just throw around a wild claim of this nature – it goes without saying that she has never been diagnosed with a mental health condition. It is a testament to the extent to which t...
The wide theatrical release is unusual for documentaries. Amazon is hoping it will prove a solid draw in the middle of the country, where such films often don’t do well.
The wide theatrical release is unusual for documentaries. Amazon is hoping it will prove a solid draw in the middle of the country, where such films often don’t do well.
Without Braverman and Robert Jenrick, and their divisive rhetoric, Kemi Badenoch is free to return to the political mainstream At a time of bleak headlines, there was at least some good news for Conservatives earlier today: Suella Braverman has finally left the party . As with the defection of Robert Jenrick earlier this month, the continued “self-purge” of the “out-Reform Reform” brigade can only...
Without Braverman and Robert Jenrick, and their divisive rhetoric, Kemi Badenoch is free to return to the political mainstream At a time of bleak headlines, there was at least some good news for Conservatives earlier today: Suella Braverman has finally left the party . As with the defection of Robert Jenrick earlier this month, the continued “self-purge” of the “out-Reform Reform” brigade can only help the electoral fortunes of the Conservative party. As I said in a previous article, “ wreckers like Braverman are why the public don’t like us ”. For those of us who have long pointed out the utter failure of their strategy, it’s schadenfreude to see them leave a ship they themselves so effectively torpedoed. Reform UK is welcome to them. I suspect Nigel Farage will rue the day they came on board. Many Conservatives will hope they have the same record of failure at their new party as they did at their last. Do you have an opinion on the issues raised in this article? If you would like to submit a response of up to 300 words by email to be considered for publication in our letters section, please click here . Continue reading...
Sly Dunbar, the Jamaican musician and producer who created generations of global hits as one half of production duo Sly and Robbie, has died aged 73. His wife, Thelma, told Jamaican newspaper the Gleaner that she found him unresponsive on Monday morning, with doctors later pronouncing him dead. Other sources close to Dunbar confirmed the news to the Guardian, adding that Dunbar had been unwell for...
Sly Dunbar, the Jamaican musician and producer who created generations of global hits as one half of production duo Sly and Robbie, has died aged 73. His wife, Thelma, told Jamaican newspaper the Gleaner that she found him unresponsive on Monday morning, with doctors later pronouncing him dead. Other sources close to Dunbar confirmed the news to the Guardian, adding that Dunbar had been unwell for some months. Among those paying tribute was the British dub and reggae DJ David Rodigan, who called him a “true icon … one of the greatest drummers of all time who played on literally thousands and thousands of recordings”. Those thousands of sessions were across multiple decades and made with an astonishing range of musical names: stars from the reggae scene such as Black Uhuru, Bunny Wailer and Chaka Demus & Pliers, but also ones from across the pop sphere, from Mick Jagger to Grace Jones, No Doubt and Serge Gainsbourg. View image in fullscreen Dunbar with Robbie Shakespeare. Photograph: Lynn Goldsmith/Corbis/VCG/Getty Images Born Lowell Fillmore Dunbar in Kingston, Jamaica, he started out playing on his school desk and on tin cans. Still in his teens, he and bassist Robbie Shakespeare – who died in 2021 – formed the rhythm section of the group the Revolutionaries (also going under other names such as the Aggrovators), who became one of the key backing bands in Jamaican reggae that decade, as well as putting out their own music. Dunbar’s insistent shuffling “rockers” drum pattern – an early showcase for which was on Dave and Ansell Collins’ Double Barrel, a UK No 1 in 1971 and Dunbar’s first appearance on a song – became hugely influential and soon underpinned whole swathes of roots reggae. View image in fullscreen Thirteen-time Grammy nominee … Dunbar. Photograph: David Corio/Redferns A 1978 tour with the Rolling Stones inspired a harder, more energetic sound for albums by the likes of Black Uhuru. By the end of the 70s Dunbar and Shakespeare had earned enough to form t...
kasezo Jefferies turned more positive on the European luxury sector on Monday. The firm reiterated a bullish view on Compagnie Financiere Richemont ( CFRUY ) ( CFRHF ) and upgraded Hermès International ( HESAY ) ( HESAF ) to a Buy rating after having it set at Neutral. Analyst James Grzinic and his team think Compagnie Financiere Richemont ( CFRUY ) ( CFRHF ) and Hermès International ( HESAY ) ( H...
kasezo Jefferies turned more positive on the European luxury sector on Monday. The firm reiterated a bullish view on Compagnie Financiere Richemont ( CFRUY ) ( CFRHF ) and upgraded Hermès International ( HESAY ) ( HESAF ) to a Buy rating after having it set at Neutral. Analyst James Grzinic and his team think Compagnie Financiere Richemont ( CFRUY ) ( CFRHF ) and Hermès International ( HESAY ) ( HESAF ) stand out because of their greater bias to more affluent shoppers. Amid the flurry of tariff headlines, European luxury stocks were noted to have fallen to valuation levels well below the pre-COVID and post-COVID periods. The firm's improved outlook for the sector is also hinged on stronger U.S. demand, although the sustainability of that trend was noted to be still up for debate. Compagnie Financière Richemont ( CFRUY ) ( CFRHF ) was down 1.3% in Zurich trading, while Hermès International ( HESAY ) ( HESAF ) rose 0.6% in Paris action. More on European luxury stocks Richemont: Q3 Delivery Supports Our Positive Stance Richemont: One For The Investment Watchlist Hermes: A Core Long-Term Holding In The Luxury Sector Seeking Alpha’s Quant Rating on Hermès International Société en commandite par actions Historical earnings data for Hermès International Société en commandite par actions
Image source: The Motley Fool. Wednesday, Oct. 23, 2024 at 10:00 a.m. ET Call participants President & Chief Executive Officer — Aurelio Aleman Chief Financial Officer — Orlando Berges Chairman — Ramon Rodriguez Need a quote from a Motley Fool analyst? Email [email protected] Takeaways Net income -- $73.7 million, equating to $0.45 per share, with a return on assets of 1.55%. -- $73.7 million, equ...
Image source: The Motley Fool. Wednesday, Oct. 23, 2024 at 10:00 a.m. ET Call participants President & Chief Executive Officer — Aurelio Aleman Chief Financial Officer — Orlando Berges Chairman — Ramon Rodriguez Need a quote from a Motley Fool analyst? Email [email protected] Takeaways Net income -- $73.7 million, equating to $0.45 per share, with a return on assets of 1.55%. -- $73.7 million, equating to $0.45 per share, with a return on assets of 1.55%. Adjusted pretax pre-provision income -- $112.0 million, down slightly due to increased expenses. -- $112.0 million, down slightly due to increased expenses. Net interest income -- $202.1 million, up $2.5 million sequentially, driven by a $3.8 million increase in loan interest income and a $1.2 million benefit from an extra day in the quarter. -- $202.1 million, up $2.5 million sequentially, driven by a $3.8 million increase in loan interest income and a $1.2 million benefit from an extra day in the quarter. Net interest margin -- 4.25%, up 3 basis points from the previous quarter, reflecting favorable asset mix shifts. -- 4.25%, up 3 basis points from the previous quarter, reflecting favorable asset mix shifts. Total loan portfolio -- Grew by $63 million, despite $102 million in unexpected commercial loan prepayments. -- Grew by $63 million, despite $102 million in unexpected commercial loan prepayments. Loan growth guidance -- Management now expects 4% growth for the full year, revised from prior 5%, due to prepayment activity. -- Management now expects 4% growth for the full year, revised from prior 5%, due to prepayment activity. Core deposits (excluding broker and government) -- Remained stable at $12.7 billion. -- Remained stable at $12.7 billion. Efficiency ratio -- Maintained at approximately 52%, consistent with prior guidance. -- Maintained at approximately 52%, consistent with prior guidance. Nonperforming assets -- Decreased to 63 basis points of total assets, following asset sales and improved credit qu...
Anxiety in Labour as by-election set to go ahead 2 hours ago Share Save Henry Zeffman , Chief political correspondent and Jennifer McKiernan , political reporter Share Save Reuters The by-election to replace former Labour MP Andrew Gwynne is likely to take place at the end of February, after the process to hold the poll was begun. On Monday, government chief whip Jonathan Reynolds asked for the wr...
Anxiety in Labour as by-election set to go ahead 2 hours ago Share Save Henry Zeffman , Chief political correspondent and Jennifer McKiernan , political reporter Share Save Reuters The by-election to replace former Labour MP Andrew Gwynne is likely to take place at the end of February, after the process to hold the poll was begun. On Monday, government chief whip Jonathan Reynolds asked for the writ for the Gorton and Denton constituency to be issued in Parliament. The by-election has to take place between 21 and 27 working days from the issuing of the writ, so the poll is likely to fall on Thursday 26 February. Sir Keir Starmer has opted for the fastest possible by-election timetable in the seat, amid anxiety in the Labour Party about the bitter fallout from a potential defeat. The Greater Manchester constituency has been represented continuously by Labour for more than 90 years but sources from different wings of the party fear that the by-election could be won by either Reform UK or the Greens. The rapid timetable is designed to constrict the amount of time the two parties have to build a campaigning infrastructure in the constituency. While the decision by the prime minister and other officers from Labour's ruling national executive to block Andy Burnham, the mayor of Greater Manchester, from becoming the candidate for the seat has been criticised by some MPs, the backlash has not been as great as some allies of Sir Keir feared. However, several MPs - including MPs who supported the decision to exclude Burnham - said they now believed that if Labour lost the by-election it would trigger a destabilising burst of leadership speculation surrounding the prime minister because he is so closely associated with the decision to bar Burnham. While a by-election defeat in a formerly safe seat would not be unheard of for a governing party, it would raise the political stakes even further for Sir Keir ahead of the May elections, where the Scottish and Welsh parliaments as w...
Image source: The Motley Fool. Thursday, Feb. 27, 2025 at 8:30 a.m. ET Call participants Chief Executive Officer — Ole Rosgaard Chief Financial Officer — Larry Hilsheimer Takeaways Adjusted EBITDA -- $145 million, representing a $7 million increase year over year and meeting management's expectations for the quarter. -- $145 million, representing a $7 million increase year over year and meeting ma...
Image source: The Motley Fool. Thursday, Feb. 27, 2025 at 8:30 a.m. ET Call participants Chief Executive Officer — Ole Rosgaard Chief Financial Officer — Larry Hilsheimer Takeaways Adjusted EBITDA -- $145 million, representing a $7 million increase year over year and meeting management's expectations for the quarter. -- $145 million, representing a $7 million increase year over year and meeting management's expectations for the quarter. Adjusted EPS -- $0.39, which declined from the prior year due primarily to a $48 million one-time tax benefit in the comparison period and $14 million higher interest expense from acquisitions. -- $0.39, which declined from the prior year due primarily to a $48 million one-time tax benefit in the comparison period and $14 million higher interest expense from acquisitions. Adjusted Free Cash Flow -- Net outflow of $62 million, which was slightly higher than prior year, mainly because of increased interest expense. -- Net outflow of $62 million, which was slightly higher than prior year, mainly because of increased interest expense. Segment Margins -- Gross profit margins improved year over year in three of four segments due to cost management and gains from the GBS 2.0 initiative; Integrated Solutions gross profit margin declined due to product mix. -- Gross profit margins improved year over year in three of four segments due to cost management and gains from the GBS 2.0 initiative; Integrated Solutions gross profit margin declined due to product mix. SG&A Costs -- SG&A expenses were elevated compared to the prior year, attributed to the IPACKCHEM acquisition and reorganization, with $11 million incremental cost from IPACKCHEM (including $5 million amortization), and a $3 million quarterly shift from cost of goods sold due to organizational realignment. -- SG&A expenses were elevated compared to the prior year, attributed to the IPACKCHEM acquisition and reorganization, with $11 million incremental cost from IPACKCHEM (including $5 mi...
Image source: The Motley Fool. Trustmark (TRMK) Q3 2025 Earnings Call Transcript Wednesday, October 29, 2025 at 9:30 a.m. ET Call participants Chief Executive Officer — Duane Dewey Chief Financial Officer — Thomas Owens Chief Credit and Operations Officer — Barry Harvey Chief Accounting Officer — Tom Chambers Need a quote from a Motley Fool analyst? Email [email protected] Takeaways Loans Held for...
Image source: The Motley Fool. Trustmark (TRMK) Q3 2025 Earnings Call Transcript Wednesday, October 29, 2025 at 9:30 a.m. ET Call participants Chief Executive Officer — Duane Dewey Chief Financial Officer — Thomas Owens Chief Credit and Operations Officer — Barry Harvey Chief Accounting Officer — Tom Chambers Need a quote from a Motley Fool analyst? Email [email protected] Takeaways Loans Held for Investment -- Increased $83 million, or 0.6% sequentially, and $448 million, or 3.4%, year over year, led by growth in commercial and industrial (C&I), municipal, and real estate secured lending. -- Increased $83 million, or 0.6% sequentially, and $448 million, or 3.4%, year over year, led by growth in commercial and industrial (C&I), municipal, and real estate secured lending. Total Deposits -- Grew $550 million, or 3.4%, sequentially, with noninterest-bearing deposits rising $186 million, or 5.9% quarter over quarter. -- Grew $550 million, or 3.4%, sequentially, with noninterest-bearing deposits rising $186 million, or 5.9% quarter over quarter. Net Income -- Reported at $56.8 million with fully diluted EPS of $0.94, up 2.2% sequentially and 11.9% year over year. -- Reported at $56.8 million with fully diluted EPS of $0.94, up 2.2% sequentially and 11.9% year over year. Net Interest Margin -- Increased 2 basis points sequentially to 3.83%; net interest income was $165.2 million, up 2.4% from the prior quarter. -- Increased 2 basis points sequentially to 3.83%; net interest income was $165.2 million, up 2.4% from the prior quarter. Noninterest Income -- Reached $39.9 million, up 0.1% sequentially and 6.3% year over year. -- Reached $39.9 million, up 0.1% sequentially and 6.3% year over year. Noninterest Expense -- Rose by $5.8 million, or 4.7%, sequentially, including $2.3 million in nonroutine costs such as a $1.4 million ORE reserve and $900,000 in professional fees for a state charter conversion and corporate initiatives. -- Rose by $5.8 million, or 4.7%, sequentially,...
Retail investors get to submit questions to be answered by the Tesla CEO. Their votes show shareholders are most interested in how they’ll be prioritized if SpaceX goes public.
Retail investors get to submit questions to be answered by the Tesla CEO. Their votes show shareholders are most interested in how they’ll be prioritized if SpaceX goes public.
Universal Pictures and Illumination dropped a new trailer for the upcoming Super Mario Galaxy Movie, and gaming fans will no doubt be delighted at the news that Yoshi, the little green dinosaur, features prominently, along with plenty of other Easter eggs for sharp-eyed fans. As previously reported , the first attempt at a Super Mario movie adaptation in 1993 was notoriously a dismal failure , alt...
Universal Pictures and Illumination dropped a new trailer for the upcoming Super Mario Galaxy Movie, and gaming fans will no doubt be delighted at the news that Yoshi, the little green dinosaur, features prominently, along with plenty of other Easter eggs for sharp-eyed fans. As previously reported , the first attempt at a Super Mario movie adaptation in 1993 was notoriously a dismal failure , although it still has its ’90s-nostalgic fans. But 2023’s Super Mario Bros. Movie won over gaming fans who were skeptical about another adaptation— including Ars Senior Gaming Editor Kyle Orland. The 2023 film reintroduced Mario and Luigi, two tight-knit but struggling Brooklyn plumbers who got separated when they unexpectedly fell into the fantastical Mushroom Kingdom. Mario sought Princess Peach’s help to rescue his brother from the evil clutches of Bowser, ruler of the Dark Lands, who was keen to marry Peach and threatened to destroy the Mushroom Kingdom with a Super Star if she refused him. So Peach led Mario on a quest to recruit allies and stop Bowser for good. They succeeded, shrinking Bowser and imprisoning him in a jar. Mario and Luigi moved to the Mushroom Kingdom and continued their plumbing work there. Read full article Comments
Jeremy Poland/iStock via Getty Images By Stacey Morris, CFA Nuclear power has enjoyed unique bipartisan support from the federal government across the Trump and Biden Administrations. However, states are also focused on supporting nuclear development. The state-level emphasis on nuclear comes as states vie for economic opportunities, including hosting data centers, while leaders are also sensitive...
Jeremy Poland/iStock via Getty Images By Stacey Morris, CFA Nuclear power has enjoyed unique bipartisan support from the federal government across the Trump and Biden Administrations. However, states are also focused on supporting nuclear development. The state-level emphasis on nuclear comes as states vie for economic opportunities, including hosting data centers, while leaders are also sensitive to upward pressure on utility bills. Notable news from New York and Illinois this month can help pave the way for the addition of new nuclear capacity in those states. New York Raises Nuclear Target In a speech on January 13, New York Governor Kathy Hochul announced a target of five gigawatts (GW) of new nuclear capacity for her state. This is up materially from a goal last summer to add one GW of nuclear power. The new target follows a robust response to the New York Power Authority’s recent solicitations of interest from communities and developers for advanced nuclear power development. New York plans to create a new nuclear workforce development program to support this effort. Currently, New York has three reactors operating with a combined capacity of 3.4 GW. The nuclear plants operating in the state are owned by Constellation Energy ( CEG ). Illinois Lifts Moratorium on New Large Reactors Illinois also saw a notable policy development for nuclear power this month. Governor JB Pritzker signed the Clean and Reliable Grid Affordability Act, which lifts the state’s moratorium on new large reactors. The ban on new reactors had been in place since 1987. State legislation in 2023 had previously allowed for new small modular reactors (capacity of 300 megawatts or less) to begin construction in 2026. Despite the ban of the last 36 years, Illinois leads the U.S. in nuclear power. The state has six nuclear plants encompassing 11 reactors, all owned by CEG. This includes the Clinton Clean Energy Center, from which Meta ( META ) will purchase power over a period of 20 years beginn...
Ares Capital is in a strong position to continue growing shareholder value. Ares Capital (ARCC 2.41%) spent much of last year trading above $22 per share. However, it dipped below that price point in late fall and hasn't been back since. As a result, the business development company's (BDC) dividend yield is above 9%. That's multiples above the S&P 500's 1.2% dividend yield. Here's a look at wheth...
Ares Capital is in a strong position to continue growing shareholder value. Ares Capital (ARCC 2.41%) spent much of last year trading above $22 per share. However, it dipped below that price point in late fall and hasn't been back since. As a result, the business development company's (BDC) dividend yield is above 9%. That's multiples above the S&P 500's 1.2% dividend yield. Here's a look at whether the BDC is worth buying while it's below $22 a share. Growing bigger and better amid falling rates Ares Capital provides capital (direct loans and other investments) to private middle market companies ($100 million to $1 billion in annual revenue) to support their business needs. Those investments generate interest and dividend income for the company. As a regulated investment company, Ares must distribute 90% of its taxable net income to investors via dividend payments to remain in compliance with IRS regulations. Expand NASDAQ : ARCC Ares Capital Today's Change ( -2.41 %) $ -0.50 Current Price $ 20.28 Key Data Points Market Cap $15B Day's Range $ 20.25 - $ 20.73 52wk Range $ 18.26 - $ 23.84 Volume 171K Avg Vol 4.6M Gross Margin 76.26 % Dividend Yield 9.24 % Given its dividend requirements, the BDC must regularly raise capital to make new investments. It has a strong record of growing its portfolio and shareholder value over the years, despite constantly evolving market conditions. For example, Ares has grown the value of its investment portfolio from $25.9 billion in the third quarter of 2024 to $28.7 billion in the third quarter of last year. While the weighted average yield of its investments has fallen over the past year (from 11.7% to 10.6%), the company's net asset value (NAV) per share has risen from $19.77 to $20.01. Even though the company's current NAV is above its recent share price, that premium has narrowed over the past year. That arguably makes Ares Capital a better value today than it was a year ago. Lower interest rates over the past year have acted as ...