Ares Capital Corporation $ARCC is Sound Income Strategies LLC's 2nd Largest Position

Key Points

• Sound Income Strategies LLC increased its stake in Ares Capital Corporation (NASDAQ:ARCC) by 3.2%, making ARCC its 2nd largest position and representing 3.1% of its total investment portfolio.
• Ares Capital recently reported an earnings miss of $0.50 EPS, falling short of expectations at $0.51, with revenues totaling $614 million against estimates of $748.76 million.
• The company declared a quarterly dividend of $0.48 per share, translating to an annualized yield of 9.4%, with a high dividend payout ratio of 93.66%.

Sound Income Strategies LLC boosted its stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 3.2% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,453,944 shares of the investment management company's stock after purchasing an additional 75,109 shares during the quarter. Ares Capital makes up 3.1% of Sound Income Strategies LLC's investment portfolio, making the stock its 2nd biggest holding. Sound Income Strategies LLC owned approximately 0.35% of Ares Capital worth $53,889,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also made changes to their positions in ARCC. KG&L Capital Management LLC purchased a new stake in shares of Ares Capital during the second quarter worth approximately $222,000. Western Financial Corp CA grew its holdings in Ares Capital by 2.2% during the 2nd quarter. Western Financial Corp CA now owns 27,548 shares of the investment management company's stock worth $605,000 after acquiring an additional 587 shares in the last quarter. Prairiewood Capital LLC increased its position in shares of Ares Capital by 12.2% in the 2nd quarter. Prairiewood Capital LLC now owns 220,136 shares of the investment management company's stock valued at $4,834,000 after purchasing an additional 23,915 shares during the last quarter. Ascent Capital Management LLC raised its holdings in shares of Ares Capital by 2.3% in the 2nd quarter. Ascent Capital Management LLC now owns 34,705 shares of the investment management company's stock valued at $762,000 after purchasing an additional 773 shares in the last quarter. Finally, Brown Lisle Cummings Inc. raised its holdings in shares of Ares Capital by 10.2% in the 2nd quarter. Brown Lisle Cummings Inc. now owns 146,116 shares of the investment management company's stock valued at $3,209,000 after purchasing an additional 13,566 shares in the last quarter. Hedge funds and other institutional investors own 27.38% of the company's stock.

Ares Capital Price Performance

ARCC stock opened at $20.46 on Monday. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 1.01. The company has a market capitalization of $14.43 billion, a P/E ratio of 9.98 and a beta of 0.70. The business has a 50 day simple moving average of $22.18 and a 200-day simple moving average of $21.76. 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 announced its earnings results on Tuesday, July 29th. The investment management company reported $0.50 EPS for the quarter, missing analysts' consensus estimates of $0.51 by ($0.01). Ares Capital had a net margin of 44.94% and a return on equity of 10.48%. The business had revenue of $614.00 million during the quarter, compared to analyst estimates of $748.76 million. During the same period in the previous year, the firm earned $0.61 earnings per share. As a group, equities analysts anticipate that Ares Capital Corporation will post 2.19 EPS for the current year.

Ares Capital Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be issued 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 dividend yield of 9.4%. Ares Capital's dividend payout ratio (DPR) is currently 93.66%.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on ARCC shares. Wall Street Zen upgraded shares of Ares Capital from a "sell" rating to a "hold" rating in a research note on Saturday, August 16th. Keefe, Bruyette & Woods increased their price objective on Ares Capital from $22.00 to $23.00 and gave the company an "outperform" rating in a report on Wednesday, July 30th. Citigroup reissued an "outperform" rating on shares of Ares Capital in a research report on Thursday, July 31st. B. Riley raised Ares Capital from a "neutral" rating to a "buy" rating and upped their price target for the company from $22.50 to $23.50 in a report on Wednesday, July 30th. Finally, Wells Fargo & Company increased their price target on shares of Ares Capital from $22.00 to $23.00 and gave the company an "overweight" rating in a research note on Wednesday, July 30th. Seven investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Ares Capital currently has an average rating of "Moderate Buy" and a consensus price target of $22.86.

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.

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