Ares Capital Corporation $ARCC Shares Bought by Advisors Capital Management LLC

Key Points

• Advisors Capital Management LLC increased its position in Ares Capital Corporation by 3.0%, holding 3,627,990 shares, which accounts for approximately 1.2% of their total portfolio.
• Ares Capital recently reported earnings of $0.50 per share, missing estimates of $0.51, and had a revenue of $614 million compared to expectations of $748.76 million.
• The company declared a quarterly dividend of $0.48 per share, representing an annualized yield of 8.6%, with the ex-dividend date set for September 15th.

Advisors Capital Management LLC lifted its position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 3.0% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 3,627,990 shares of the investment management company's stock after acquiring an additional 104,339 shares during the quarter. Ares Capital accounts for approximately 1.2% of Advisors Capital Management LLC's holdings, making the stock its 14th largest position. Advisors Capital Management LLC owned 0.52% of Ares Capital worth $80,396,000 at the end of the most recent quarter.

Several other hedge funds also recently made changes to their positions in the company. Rollins Financial Advisors LLC grew its position in shares of Ares Capital by 10.2% in the 1st quarter. Rollins Financial Advisors LLC now owns 138,139 shares of the investment management company's stock worth $3,061,000 after acquiring an additional 12,838 shares in the last quarter. Fortis Capital Advisors LLC grew its position in shares of Ares Capital by 7.1% during the 1st quarter. Fortis Capital Advisors LLC now owns 18,517 shares of the investment management company's stock valued at $410,000 after buying an additional 1,232 shares during the last quarter. Belpointe Asset Management LLC grew its position in shares of Ares Capital by 1.7% during the 1st quarter. Belpointe Asset Management LLC now owns 44,358 shares of the investment management company's stock valued at $983,000 after buying an additional 746 shares during the last quarter. SCS Capital Management LLC bought a new stake in shares of Ares Capital during the 1st quarter valued at about $11,778,000. Finally, Smith Asset Management Co. LLC bought a new stake in shares of Ares Capital during the 1st quarter valued at about $6,108,000. Institutional investors and hedge funds own 27.38% of the company's stock.

Ares Capital Stock Up 0.5%

Shares of Ares Capital stock opened at $22.35 on Thursday. The business's fifty day moving average price is $22.55 and its two-hundred day moving average price is $21.89. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.14 and a quick ratio of 1.14. The company has a market capitalization of $15.77 billion, a P/E ratio of 10.90 and a beta of 0.70. Ares Capital Corporation has a 1-year low of $18.26 and a 1-year high of $23.84.

Ares Capital (NASDAQ:ARCC - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The investment management company reported $0.50 earnings per share 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 analyst estimates of $748.76 million. Ares Capital had a return on equity of 10.48% and a net margin of 44.94%.During the same period in the prior year, the company posted $0.61 earnings per share. As a group, research analysts forecast that Ares Capital Corporation will post 2.19 EPS for the current year.

Ares Capital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be paid a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 8.6%. The ex-dividend date of this dividend is Monday, September 15th. Ares Capital's dividend payout ratio is currently 93.66%.

Analysts Set New Price Targets

A number of brokerages recently weighed in on ARCC. Wells Fargo & Company boosted their price objective on shares of Ares Capital from $22.00 to $23.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th. B. Riley upgraded Ares Capital from a "neutral" rating to a "buy" rating and boosted their price objective for the company from $22.50 to $23.50 in a research report on Wednesday, July 30th. Keefe, Bruyette & Woods boosted their price objective on Ares Capital from $22.00 to $23.00 and gave the company an "outperform" rating in a research report on Wednesday, July 30th. Wall Street Zen upgraded Ares Capital from a "sell" rating to a "hold" rating in a research report on Saturday, August 16th. Finally, JMP Securities set a $23.00 price objective on Ares Capital and gave the company a "market outperform" rating in a research report on Thursday, July 31st. Seven research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, Ares Capital has an average rating of "Moderate Buy" and a consensus target price of $22.86.

Ares Capital Profile

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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