Ares Capital Corporation $ARCC Shares Acquired by Taylor Frigon Capital Management LLC

Key Points

• Taylor Frigon Capital Management LLC increased its stake in Ares Capital Corporation (NASDAQ:ARCC) by 20.9%, owning 126,366 shares by the end of the most recent quarter, valued at approximately $2,775,000.
• Analysts have recently upgraded Ares Capital’s stock ratings, with multiple firms setting price targets between $22.00 and $23.50, indicating a consensus rating of "Moderate Buy".
• Ares Capital announced a quarterly dividend of $0.48 per share, representing an annualized yield of 9.4% and a dividend payout ratio of 93.66%.

Taylor Frigon Capital Management LLC boosted its position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 20.9% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 126,366 shares of the investment management company's stock after purchasing an additional 21,847 shares during the period. Ares Capital comprises approximately 1.5% of Taylor Frigon Capital Management LLC's holdings, making the stock its 15th largest position. Taylor Frigon Capital Management LLC's holdings in Ares Capital were worth $2,775,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the business. Elequin Capital LP purchased a new position in shares of Ares Capital during the 1st quarter worth approximately $30,000. Continuum Advisory LLC grew its holdings in Ares Capital by 320.7% during the first quarter. Continuum Advisory LLC now owns 1,628 shares of the investment management company's stock worth $36,000 after acquiring an additional 1,241 shares during the period. Wolff Wiese Magana LLC purchased a new position in Ares Capital in the second quarter worth $40,000. Investment Management Corp VA ADV lifted its holdings in Ares Capital by 193.9% in the first quarter. Investment Management Corp VA ADV now owns 1,828 shares of the investment management company's stock valued at $41,000 after acquiring an additional 1,206 shares during the period. Finally, PSI Advisors LLC lifted its holdings in Ares Capital by 121.1% in the first quarter. PSI Advisors LLC now owns 2,100 shares of the investment management company's stock valued at $47,000 after acquiring an additional 1,150 shares during the period. Institutional investors and hedge funds own 27.38% of the company's stock.

Analyst Upgrades and Downgrades

ARCC has been the topic of a number of recent analyst reports. B. Riley raised shares of Ares Capital from a "neutral" rating to a "buy" rating and upped their price target for the stock from $22.50 to $23.50 in a research note on Wednesday, July 30th. JMP Securities set a $23.00 target price on shares of Ares Capital and gave the company a "market outperform" rating in a report on Thursday, July 31st. Citigroup reiterated an "outperform" rating on shares of Ares Capital in a research report on Thursday, July 31st. Wells Fargo & Company upped their price target on Ares Capital from $22.00 to $23.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Finally, Keefe, Bruyette & Woods raised their price objective on Ares Capital from $22.00 to $23.00 and gave the company an "outperform" 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 stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $22.86.

Ares Capital Trading Down 0.5%

Shares of ARCC opened at $20.46 on Monday. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.14 and a quick ratio of 1.14. Ares Capital Corporation has a 1-year low of $18.26 and a 1-year high of $23.84. The stock has a market cap of $14.43 billion, a price-to-earnings ratio of 9.98 and a beta of 0.70. The firm has a 50 day simple moving average of $22.18 and a 200-day simple moving average of $21.76.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its earnings results on Tuesday, July 29th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.51 by ($0.01). The company had revenue of $614.00 million during the quarter, compared to analysts' expectations of $748.76 million. Ares Capital had a net margin of 44.94% and a return on equity of 10.48%. During the same period in the previous year, the company posted $0.61 EPS. Equities analysts forecast that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be given a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a yield of 9.4%. The ex-dividend date is Monday, September 15th. Ares Capital's dividend payout ratio (DPR) is currently 93.66%.

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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