Allworth Financial LP Invests $1.02 Million in Ares Capital Corporation $ARCC

Key Points

• Allworth Financial initiated a $1.02 million position in Ares Capital during the second quarter by purchasing 55,265 shares. Institutional investors collectively own 27.38% of ARCC.
• Ares Capital reported quarterly EPS of $0.47, matching analyst expectations, while revenue of $768 million came slightly below estimates. Analysts project full-year EPS of $1.91.
• The company declared a quarterly dividend of $0.48, or $1.92 annually, representing a 9.6% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $20.40.

Allworth Financial LP bought a new stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) in the 2nd quarter, according to its most recent 13F filing with the SEC. The firm bought 55,265 shares of the investment management company's stock, valued at approximately $1,024,000.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Palladiem LLC bought a new position in Ares Capital in the fourth quarter worth approximately $26,000. SWAN Capital LLC acquired a new position in shares of Ares Capital during the third quarter worth approximately $27,000. Sankala Group LLC acquired a new position in shares of Ares Capital during the fourth quarter worth approximately $28,000. Core Wealth Advisors LLC bought a new position in shares of Ares Capital in the 4th quarter worth $33,000. Finally, Quarry LP bought a new position in shares of Ares Capital in the 3rd quarter worth $33,000. 27.38% of the stock is owned by institutional investors.

Ares Capital Price Performance

Shares of NASDAQ:ARCC opened at $19.92 on Friday. 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 stock has a market cap of $14.30 billion, a PE ratio of 14.76 and a beta of 0.56. The stock's fifty day simple moving average is $18.93 and its two-hundred day simple moving average is $18.82. Ares Capital Corporation has a 1-year low of $17.40 and a 1-year high of $22.53.

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 net margin of 30.91% and a return on equity of 9.80%. The firm had revenue of $768.00 million during the quarter, compared to analyst estimates of $770.19 million. During the same quarter in the prior year, the business posted $0.50 EPS. As a group, analysts forecast that Ares Capital Corporation will post 1.91 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The company also recently disclosed 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 dividend on an annualized basis and a yield of 9.6%. The ex-dividend date of this dividend is Tuesday, September 15th. Ares Capital's dividend payout ratio is presently 142.22%.

Analysts Set New Price Targets

ARCC has been the subject of several research reports. Keefe, Bruyette & Woods reduced their price target 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. Wells Fargo & Company reaffirmed an "equal weight" rating and issued a $19.00 price objective (down from $20.00) on shares of Ares Capital in a research note on Friday, June 12th. B. Riley Financial dropped their price objective 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. Wall Street Zen cut shares of Ares Capital from a "hold" rating to a "sell" rating in a report on Sunday, August 2nd. Finally, Royal Bank Of Canada decreased their target price on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a research report on Wednesday, April 29th. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, Ares Capital has a consensus rating of "Moderate Buy" and a consensus target price of $20.40.

Ares Capital Company 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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