14,502 Shares in Ares Capital Corporation $ARCC Purchased by Grimes & Company Inc.

Key Points

• Grimes & Company Inc. has purchased 14,502 shares of Ares Capital Corporation ($ARCC) in the second quarter, valued at approximately $318,000.
• Ares Capital's recent quarterly earnings report showed an EPS of $0.50, missing expectations, with a revenue of $614 million compared to analyst estimates of $748.76 million.
• The company recently announced a quarterly dividend of $0.48 per share, translating to an annualized yield of 9.7%, with a payout ratio of 93.66%.

Grimes & Company Inc. bought a new position in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The firm bought 14,502 shares of the investment management company's stock, valued at approximately $318,000.

A number of other hedge funds have also made changes to their positions in ARCC. Kingstone Capital Partners Texas LLC acquired a new stake in shares of Ares Capital during the 2nd quarter worth about $877,203,000. HighTower Advisors LLC increased its position in shares of Ares Capital by 87.2% during the 1st quarter. HighTower Advisors LLC now owns 2,621,109 shares of the investment management company's stock worth $58,084,000 after purchasing an additional 1,220,570 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new stake in Ares Capital in the 1st quarter valued at about $14,766,000. CCLA Investment Management increased its position in Ares Capital by 26.5% in the 1st quarter. CCLA Investment Management now owns 2,799,023 shares of the investment management company's stock valued at $62,026,000 after acquiring an additional 587,068 shares in the last quarter. Finally, SCS Capital Management LLC acquired a new stake in Ares Capital in the 1st quarter valued at about $11,778,000. Institutional investors and hedge funds own 27.38% of the company's stock.

Wall Street Analysts Forecast Growth

ARCC has been the subject of several research reports. Weiss Ratings restated a "buy (b)" rating on shares of Ares Capital in a research report on Saturday, September 27th. Wall Street Zen upgraded shares of Ares Capital from a "sell" rating to a "hold" rating in a research report on Saturday, August 16th. B. Riley upgraded shares of Ares Capital from a "neutral" rating to a "buy" rating and raised their price objective for the company from $22.50 to $23.50 in a research report on Wednesday, July 30th. Citigroup restated an "outperform" rating on shares of Ares Capital in a research report on Thursday, July 31st. Finally, Wells Fargo & Company raised their price objective on shares of Ares Capital from $22.00 to $23.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th. Eight equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, Ares Capital has an average rating of "Moderate Buy" and an average target price of $22.86.

Ares Capital Stock Down 1.3%

Shares of NASDAQ:ARCC opened at $19.86 on Wednesday. Ares Capital Corporation has a one year low of $18.26 and a one year high of $23.84. The company has a 50 day moving average of $21.81 and a 200-day moving average of $21.69. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.14 and a quick ratio of 1.14. The stock has a market cap of $14.01 billion, a price-to-earnings ratio of 9.69 and a beta of 0.68.

Ares Capital (NASDAQ:ARCC - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The investment management company reported $0.50 EPS for the quarter, missing the consensus estimate of $0.51 by ($0.01). Ares Capital had a return on equity of 10.48% and a net margin of 44.94%.The business had revenue of $614.00 million for the quarter, compared to analyst estimates of $748.76 million. During the same quarter in the prior year, the firm earned $0.61 EPS. On average, sell-side analysts forecast that Ares Capital Corporation will post 2.19 earnings per share for the current year.

Ares Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Monday, September 15th were issued a dividend of $0.48 per share. The ex-dividend date was Monday, September 15th. This represents a $1.92 dividend on an annualized basis and a yield of 9.7%. Ares Capital's payout ratio is currently 93.66%.

Ares Capital Profile

Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.

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