Truvestments Capital LLC Purchases 53,163 Shares of Ares Capital Corporation $ARCC

Key Points

• Truvestments Capital LLC increased its stake in Ares Capital Corporation by 30.7%, now holding 226,358 shares valued at approximately $5 million, making it the 13th largest position in their portfolio.
• Ares Capital reported a net margin of 44.94% and a return on equity of 10.48%, although it missed EPS expectations for the last quarter, reporting $0.50 instead of the anticipated $0.51.
• The company announced a quarterly dividend of $0.48 per share, representing an annual yield of 8.6%, with an ex-dividend date set for September 15th.

Truvestments Capital LLC increased its stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 30.7% during the first quarter, according to its most recent filing with the SEC. The institutional investor owned 226,358 shares of the investment management company's stock after purchasing an additional 53,163 shares during the period. Ares Capital accounts for 1.1% of Truvestments Capital LLC's investment portfolio, making the stock its 13th largest position. Truvestments Capital LLC's holdings in Ares Capital were worth $5,016,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also recently modified their holdings of the business. MML Investors Services LLC lifted its position in Ares Capital by 1.3% in the 4th quarter. MML Investors Services LLC now owns 74,687 shares of the investment management company's stock worth $1,635,000 after buying an additional 946 shares during the last quarter. Integrated Wealth Concepts LLC lifted its position in Ares Capital by 29.3% in the 4th quarter. Integrated Wealth Concepts LLC now owns 44,739 shares of the investment management company's stock worth $979,000 after buying an additional 10,140 shares during the last quarter. Beacon Pointe Advisors LLC lifted its position in Ares Capital by 15.3% in the 4th quarter. Beacon Pointe Advisors LLC now owns 263,590 shares of the investment management company's stock worth $5,770,000 after buying an additional 35,008 shares during the last quarter. The Manufacturers Life Insurance Company lifted its position in Ares Capital by 5.1% in the 4th quarter. The Manufacturers Life Insurance Company now owns 233,456 shares of the investment management company's stock worth $5,110,000 after buying an additional 11,355 shares during the last quarter. Finally, Lido Advisors LLC grew its position in Ares Capital by 16.5% during the 4th quarter. Lido Advisors LLC now owns 353,577 shares of the investment management company's stock worth $7,740,000 after acquiring an additional 49,982 shares during the last quarter. Hedge funds and other institutional investors own 27.38% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently issued reports on ARCC shares. JMP Securities set a $23.00 price target on Ares Capital and gave the stock a "market outperform" rating in a research report on Thursday, July 31st. Keefe, Bruyette & Woods raised their price target on Ares Capital from $22.00 to $23.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 30th. B. Riley upgraded Ares Capital from a "neutral" rating to a "buy" rating and lifted their price objective for the stock from $22.50 to $23.50 in a research report on Wednesday, July 30th. Royal Bank Of Canada cut their price objective on Ares Capital from $24.00 to $23.00 and set an "outperform" rating on the stock in a research report on Tuesday, May 6th. Finally, Citigroup reiterated an "outperform" rating on shares of Ares Capital in a research report on Thursday, July 31st. Seven investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $22.86.

Ares Capital Stock Up 0.7%

Shares of NASDAQ ARCC traded up $0.15 during mid-day trading on Friday, hitting $22.40. 2,342,110 shares of the stock traded hands, compared to its average volume of 3,237,822. The company has a debt-to-equity ratio of 1.01, a quick ratio of 1.14 and a current ratio of 1.14. The stock has a fifty day moving average price of $22.46 and a 200-day moving average price of $21.93. Ares Capital Corporation has a 52 week low of $18.26 and a 52 week high of $23.84. The company has a market cap of $15.80 billion, a price-to-earnings ratio of 10.93 and a beta of 0.70.

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

Ares Capital Dividend Announcement

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

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.