Ares Capital Corporation $ARCC Shares Purchased by Northeast Financial Consultants Inc

Key Points

• Northeast Financial Consultants Inc increased its stake in Ares Capital Corporation by 22.2% during the first quarter, holding about 857,410 shares, which accounts for approximately 0.8% of their investment portfolio.
• Ares Capital reported $0.50 EPS for the last quarter, missing analyst expectations of $0.51 EPS, with a revenue of $614 million, significantly below the forecasted $748.76 million.
• The company's upcoming quarterly dividend of $0.48 per share reflects an annualized dividend yield of 8.5%, with a payout ratio of 93.66%.

Northeast Financial Consultants Inc lifted its position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 22.2% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 857,410 shares of the investment management company's stock after acquiring an additional 155,924 shares during the period. Ares Capital accounts for approximately 0.8% of Northeast Financial Consultants Inc's investment portfolio, making the stock its 24th biggest holding. Northeast Financial Consultants Inc owned about 0.12% of Ares Capital worth $19,000,000 at the end of the most recent reporting period.

Other hedge funds have also recently made changes to their positions in the company. Allspring Global Investments Holdings LLC increased its position in shares of Ares Capital by 0.7% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 241,119 shares of the investment management company's stock valued at $5,343,000 after acquiring an additional 1,776 shares during the period. Mirae Asset Global Investments Co. Ltd. raised its stake in shares of Ares Capital by 18.2% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 47,840 shares of the investment management company's stock valued at $1,058,000 after buying an additional 7,381 shares during the last quarter. Bessemer Group Inc. lifted its holdings in shares of Ares Capital by 23,571.4% in the 1st quarter. Bessemer Group Inc. now owns 3,314 shares of the investment management company's stock valued at $73,000 after buying an additional 3,300 shares during the period. GAMMA Investing LLC boosted its stake in shares of Ares Capital by 2,116.0% in the first quarter. GAMMA Investing LLC now owns 13,274 shares of the investment management company's stock worth $2,940,000 after buying an additional 12,675 shares during the last quarter. Finally, SG Americas Securities LLC boosted its stake in shares of Ares Capital by 2.8% in the first quarter. SG Americas Securities LLC now owns 24,361 shares of the investment management company's stock worth $540,000 after buying an additional 666 shares during the last quarter. 27.38% of the stock is owned by institutional investors and hedge funds.

Ares Capital Price Performance

NASDAQ:ARCC opened at $22.49 on Tuesday. Ares Capital Corporation has a 52 week low of $18.26 and a 52 week high of $23.84. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 1.01. The stock has a market capitalization of $15.86 billion, a PE ratio of 10.97 and a beta of 0.70. The stock's 50-day moving average price is $22.54 and its 200-day moving average price is $21.89.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted 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 for the quarter, compared to analyst estimates of $748.76 million. During the same quarter last year, the business earned $0.61 earnings per share. As a group, equities analysts expect that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be given a dividend of $0.48 per share. The ex-dividend date is Monday, September 15th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 8.5%. Ares Capital's dividend payout ratio (DPR) is 93.66%.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. Citigroup reaffirmed an "outperform" rating on shares of Ares Capital in a report on Thursday, July 31st. Wall Street Zen raised Ares Capital from a "sell" rating to a "hold" rating in a report on Saturday, August 16th. UBS Group raised their target price on Ares Capital from $22.00 to $22.50 and gave the stock a "neutral" rating in a report on Wednesday, July 16th. B. Riley raised Ares Capital from a "neutral" rating to a "buy" rating and raised their target price for the stock from $22.50 to $23.50 in a report on Wednesday, July 30th. Finally, Wells Fargo & Company raised their target price on Ares Capital from $22.00 to $23.00 and gave the stock an "overweight" rating in a report 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.com, Ares Capital has a consensus 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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