Advisors Capital Management LLC Buys New Stake in Ares Capital Corporation $ARCC

Key Points

• Advisors Capital Management purchased 3.41 million Ares Capital shares worth approximately $63.1 million, representing about 0.47% of the company. Institutional investors collectively own 27.38% of ARCC.
• Analysts maintain a generally positive outlook, with eight Buy ratings and three Holds, producing a consensus “Moderate Buy” rating and an average price target of $20.40, despite several recent target reductions.
• ARCC reported quarterly EPS of $0.47, matching estimates, and announced a $0.48 quarterly dividend. The annualized dividend of $1.92 implies a 9.7% yield, although the payout ratio is elevated at 142.22%.

Advisors Capital Management LLC bought a new stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 3,407,463 shares of the investment management company's stock, valued at approximately $63,140,000. Advisors Capital Management LLC owned approximately 0.47% of Ares Capital at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in the business. Morgan Stanley boosted its holdings in Ares Capital by 2.0% in the fourth quarter. Morgan Stanley now owns 17,558,581 shares of the investment management company's stock valued at $355,210,000 after purchasing an additional 341,578 shares during the last quarter. UBS Group AG grew its holdings in Ares Capital by 41.8% during the fourth quarter. UBS Group AG now owns 11,201,905 shares of the investment management company's stock worth $226,615,000 after acquiring an additional 3,301,890 shares during the period. Strs Ohio purchased a new position in Ares Capital during the first quarter valued at approximately $189,210,000. Bank of America Corp DE lifted its holdings in Ares Capital by 16.0% in the first quarter. Bank of America Corp DE now owns 9,135,454 shares of the investment management company's stock valued at $164,621,000 after acquiring an additional 1,259,230 shares during the period. Finally, Legal & General Group Plc lifted its holdings in Ares Capital by 16.4% in the fourth quarter. Legal & General Group Plc now owns 5,408,067 shares of the investment management company's stock valued at $109,432,000 after acquiring an additional 761,838 shares during the period. Institutional investors and hedge funds own 27.38% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts recently commented on ARCC shares. Truist Financial dropped their price target on shares of Ares Capital from $22.00 to $21.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th. Keefe, Bruyette & Woods decreased their price objective on shares of Ares Capital from $21.00 to $20.00 and set an "outperform" rating for the company in a research report on Thursday, July 30th. B. Riley Financial lowered their target price on shares of Ares Capital from $22.00 to $20.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Wells Fargo & Company restated an "equal weight" rating and set a $19.00 target price (down from $20.00) on shares of Ares Capital in a research report on Friday, June 12th. Finally, Royal Bank Of Canada cut their price target on Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a research note on Wednesday, April 29th. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, Ares Capital currently has a consensus rating of "Moderate Buy" and an average target price of $20.40.

Ares Capital Stock Down 0.1%

ARCC stock opened at $19.78 on Friday. The firm has a market cap of $14.20 billion, a PE ratio of 14.65 and a beta of 0.56. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.28 and a current ratio of 1.28. The firm's 50 day moving average price is $18.92 and its 200-day moving average price is $18.81. Ares Capital Corporation has a one year low of $17.40 and a one year high of $22.53.

Ares Capital (NASDAQ:ARCC - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The investment management company reported $0.47 EPS for the quarter, hitting the consensus estimate of $0.47. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. The firm had revenue of $768.00 million for the quarter, compared to analyst estimates of $770.19 million. During the same period in the prior year, the business posted $0.50 EPS. On average, equities research analysts anticipate that Ares Capital Corporation will post 1.91 EPS for the current year.

Ares Capital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be given a $0.48 dividend. This represents a $1.92 annualized dividend and a yield of 9.7%. The ex-dividend date of this dividend is Tuesday, September 15th. Ares Capital's payout ratio is currently 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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