Financial Management Network Inc. Invests $4.26 Million in Ares Capital Corporation (NASDAQ:ARCC)

Key Points

• Financial Management Network Inc. has purchased 192,019 shares of Ares Capital Corporation, valued at approximately $4.26 million, making it the 29th largest position in their investment portfolio.
• Ares Capital reported $0.50 earnings per share for the last quarter, missing analysts' estimates, with revenue of $599 million, compared to the forecast of $769 million.
• The company announced a quarterly dividend of $0.48 per share, representing an annualized yield of 8.31% and a dividend payout ratio of 93.66%.

Financial Management Network Inc. acquired a new position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 192,019 shares of the investment management company's stock, valued at approximately $4,255,000. Ares Capital comprises approximately 0.9% of Financial Management Network Inc.'s portfolio, making the stock its 29th largest position.

Several other hedge funds and other institutional investors have also modified their holdings of ARCC. Montag & Caldwell LLC acquired a new stake in shares of Ares Capital in the 4th quarter valued at $33,000. Continuum Advisory LLC boosted its stake in shares of Ares Capital by 320.7% in the 1st quarter. Continuum Advisory LLC now owns 1,628 shares of the investment management company's stock valued at $36,000 after purchasing an additional 1,241 shares in the last quarter. Investment Management Corp VA ADV boosted its stake in shares of Ares Capital by 193.9% in the 1st quarter. Investment Management Corp VA ADV now owns 1,828 shares of the investment management company's stock valued at $41,000 after purchasing an additional 1,206 shares in the last quarter. PSI Advisors LLC boosted its stake in shares of Ares Capital by 121.1% in the 1st quarter. PSI Advisors LLC now owns 2,100 shares of the investment management company's stock valued at $47,000 after purchasing an additional 1,150 shares in the last quarter. Finally, Archer Investment Corp lifted its position in Ares Capital by 281.3% during the 1st quarter. Archer Investment Corp now owns 2,440 shares of the investment management company's stock worth $54,000 after buying an additional 1,800 shares in the last quarter. Institutional investors and hedge funds own 27.38% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on ARCC shares. UBS Group upped their price target on shares of Ares Capital from $22.00 to $22.50 and gave the stock a "neutral" rating in a research report on Wednesday, July 16th. Wells Fargo & Company upped their price target on shares of Ares Capital from $22.00 to $23.00 and gave the stock an "overweight" rating in a research report on Wednesday. B. Riley upgraded shares of Ares Capital from a "neutral" rating to a "buy" rating and upped their price target for the stock from $22.50 to $23.50 in a research report on Wednesday. JPMorgan Chase & Co. reduced their price target on shares of Ares Capital from $24.50 to $22.00 and set an "overweight" rating on the stock in a research report on Thursday, April 24th. Finally, Keefe, Bruyette & Woods upped their price target on shares of Ares Capital from $22.00 to $23.00 and gave the stock an "outperform" rating in a research report on Wednesday. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $22.86.

Ares Capital Trading Down 0.1%

Shares of NASDAQ:ARCC traded down $0.03 during mid-day trading on Thursday, reaching $22.61. The stock had a trading volume of 3,334,508 shares, compared to its average volume of 4,605,151. The firm has a market cap of $15.69 billion, a PE ratio of 11.05 and a beta of 0.67. The firm has a 50 day simple moving average of $22.22 and a two-hundred day simple moving average of $22.05. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 1.02. Ares Capital Corporation has a twelve month low of $18.26 and a twelve month high of $23.84.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its earnings results on Tuesday, July 29th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.51 by ($0.01). Ares Capital had a return on equity of 10.63% and a net margin of 44.94%. The business had revenue of $614.00 million for the quarter, compared to the consensus estimate of $748.76 million. During the same period in the previous year, the company posted $0.61 earnings per share. On average, research analysts predict that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be paid a dividend of $0.48 per share. The ex-dividend date of this dividend is Monday, September 15th. This represents a $1.92 dividend on an annualized basis and a yield of 8.49%. Ares Capital's payout ratio is 93.66%.

Ares Capital Company 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.