2,446,785 Shares in Ares Capital Corporation $ARCC Acquired by BlackRock Inc.

Key Points

• BlackRock acquired 2.45 million Ares Capital shares worth approximately $45.3 million during the second quarter, giving it a 0.34% stake. Institutional investors collectively own 27.38% of ARCC.
• Analysts maintain a generally positive view, with eight Buy ratings and three Holds. Ares Capital has a “Moderate Buy” consensus rating and an average price target of $20.40, despite several recent target reductions.
• Ares Capital reported quarterly EPS of $0.47, matching estimates, and announced a $0.48 quarterly dividend. The dividend implies an annualized payout of $1.92 and a yield of approximately 9.6%.

BlackRock Inc. bought a new position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 2,446,785 shares of the investment management company's stock, valued at approximately $45,339,000. BlackRock Inc. owned approximately 0.34% of Ares Capital at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. AQR Capital Management LLC grew its holdings in shares of Ares Capital by 6.5% during the 1st quarter. AQR Capital Management LLC now owns 16,502 shares of the investment management company's stock valued at $365,000 after purchasing an additional 1,000 shares during the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in Ares Capital in the first quarter worth $273,000. Goldman Sachs Group Inc. lifted its stake in Ares Capital by 14.5% in the first quarter. Goldman Sachs Group Inc. now owns 2,835,007 shares of the investment management company's stock worth $62,824,000 after purchasing an additional 358,829 shares during the last quarter. Empowered Funds LLC boosted its position in Ares Capital by 139.9% during the first quarter. Empowered Funds LLC now owns 27,655 shares of the investment management company's stock valued at $613,000 after buying an additional 16,128 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC bought a new position in shares of Ares Capital during the first quarter valued at about $14,766,000. 27.38% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of research firms have recently weighed in on ARCC. Weiss Ratings reissued a "hold (c)" rating on shares of Ares Capital in a research note on Tuesday, June 9th. JPMorgan Chase & Co. reduced their price target on Ares Capital from $19.00 to $18.50 and set an "overweight" rating on the stock in a research report on Thursday, July 2nd. Truist Financial decreased their price target on Ares Capital from $22.00 to $21.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Keefe, Bruyette & Woods lowered their price objective on Ares Capital from $21.00 to $20.00 and set an "outperform" rating for the company in a research report on Thursday, July 30th. Finally, Wells Fargo & Company reissued an "equal weight" rating and set a $19.00 price objective (down from $20.00) on shares of Ares Capital in a research note on Friday, June 12th. Eight equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $20.40.

Ares Capital Stock Performance

Shares of NASDAQ:ARCC opened at $20.07 on Tuesday. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 1.14. The company has a 50-day moving average price of $19.14 and a 200-day moving average price of $18.84. The company has a market cap of $14.41 billion, a price-to-earnings ratio of 14.87 and a beta of 0.56. Ares Capital Corporation has a 12 month low of $17.40 and a 12 month high of $22.51.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its earnings results on Wednesday, July 29th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.47. Ares Capital had a return on equity of 9.80% and a net margin of 30.91%.The company had revenue of $768.00 million for the quarter, compared to analysts' expectations of $770.19 million. During the same period last year, the firm earned $0.50 earnings per share. As a group, equities analysts anticipate that Ares Capital Corporation will post 1.91 EPS for the current year.

Ares Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be paid a dividend of $0.48 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.92 annualized dividend and a dividend yield of 9.6%. Ares Capital's payout ratio is 142.22%.

Ares Capital Profile

Ares Capital Corporation NASDAQ: ARCC is a publicly traded business development company (BDC) that specializes in providing debt and equity financing solutions to U.S. middle-market companies. As a BDC, Ares Capital offers investors access to a diversified portfolio of tailored credit investments, including senior secured loans, unitranche financing, mezzanine debt and equity co-investments. The firm's flexible capital structures are designed to support companies seeking growth capital, refinancing or strategic acquisitions.

Through its credit platform, Ares Capital focuses on originations, underwriting and portfolio management across a range of industries, with a particular emphasis on sectors such as healthcare, technology, industrials and business services.

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