Tempus Wealth Planning LLC Takes Position in Ares Capital Corporation (NASDAQ:ARCC)

Key Points

• Tempus Wealth Planning LLC acquired a new stake in Ares Capital Corporation during the 1st quarter, purchasing 53,642 shares valued at approximately $1,189,000.
• Ares Capital recently reported earnings of $0.50 per share, falling short of analysts' expectations, and had a revenue of $599 million, significantly below the predicted $769.32 million.
• The firm announced a quarterly dividend of $0.48 per share, with an annualized dividend yield of 8.31% and a payout ratio of 93.66%.

Tempus Wealth Planning LLC acquired a new stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) during the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor acquired 53,642 shares of the investment management company's stock, valued at approximately $1,189,000.

Other large investors have also recently added to or reduced their stakes in the company. Allspring Global Investments Holdings LLC increased its stake in shares of Ares Capital by 0.7% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 241,119 shares of the investment management company's stock worth $5,343,000 after purchasing an additional 1,776 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its holdings in shares of Ares Capital by 18.2% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 47,840 shares of the investment management company's stock worth $1,058,000 after buying an additional 7,381 shares during the period. Bessemer Group Inc. boosted its holdings in shares of Ares Capital by 23,571.4% during the 1st quarter. Bessemer Group Inc. now owns 3,314 shares of the investment management company's stock worth $73,000 after buying an additional 3,300 shares during the period. GAMMA Investing LLC boosted its holdings in shares of Ares Capital by 2,116.0% during the 1st quarter. GAMMA Investing LLC now owns 13,274 shares of the investment management company's stock worth $2,940,000 after buying an additional 12,675 shares during the period. Finally, Thrivent Financial for Lutherans bought a new stake in shares of Ares Capital during the 4th quarter worth $314,000. Institutional investors and hedge funds own 27.38% of the company's stock.

Ares Capital Stock Up 0.3%

ARCC traded up $0.08 during trading on Friday, reaching $23.11. The company had a trading volume of 2,541,450 shares, compared to its average volume of 3,036,561. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.40 and a quick ratio of 1.40. Ares Capital Corporation has a 12 month low of $18.26 and a 12 month high of $23.84. The business's fifty day moving average price is $22.17 and its 200 day moving average price is $22.04. The company has a market cap of $16.04 billion, a P/E ratio of 11.27 and a beta of 0.67.

Ares Capital (NASDAQ:ARCC - Get Free Report) last issued its earnings results on Tuesday, April 29th. The investment management company reported $0.50 earnings per share for the quarter, missing analysts' consensus estimates of $0.54 by ($0.04). Ares Capital had a return on equity of 11.05% and a net margin of 43.50%. The firm had revenue of $599.00 million for the quarter, compared to analyst estimates of $769.32 million. During the same quarter in the previous year, the firm posted $0.59 earnings per share. Ares Capital's quarterly revenue was up 4.4% on a year-over-year basis. Equities analysts anticipate that Ares Capital Corporation will post 2.19 EPS for the current year.

Ares Capital Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 13th were given a $0.48 dividend. The ex-dividend date of this dividend was Friday, June 13th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 8.31%. Ares Capital's payout ratio is presently 93.66%.

Analyst Ratings Changes

Several analysts recently issued reports on the stock. B. Riley raised shares of Ares Capital to a "hold" rating in a report on Monday, June 16th. JPMorgan Chase & Co. reduced their price target on shares of Ares Capital from $24.50 to $22.00 and set an "overweight" rating for the company in a report on Thursday, April 24th. Wells Fargo & Company increased their price target on shares of Ares Capital from $21.00 to $22.00 and gave the company an "overweight" rating in a report on Friday, June 27th. UBS Group raised their price objective on shares of Ares Capital from $22.00 to $22.50 and gave the stock a "neutral" rating in a report on Wednesday, July 16th. Finally, Keefe, Bruyette & Woods reduced their price objective on shares of Ares Capital from $23.00 to $22.00 and set an "outperform" rating for the company in a report on Tuesday, April 8th. One analyst has rated the stock with a sell rating, three have issued a hold rating, five have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $22.21.

About Ares Capital

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.