Ares Capital Corporation $ARCC Shares Sold by HB Wealth Management LLC

Key Points

• HB Wealth Management LLC has reduced its stake in Ares Capital Corporation by 18.4%, now owning 134,239 shares valued at approximately $2.95 million.
• Ares Capital's quarterly dividend of $0.48 per share reflects an annual yield of 9.5%, with a dividend payout ratio of 93.66%.
• Equities analysts have raised Ares Capital's price target, with the consensus now at $22.86, prompting a "Moderate Buy" rating.

HB Wealth Management LLC reduced its position in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 18.4% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 134,239 shares of the investment management company's stock after selling 30,340 shares during the period. HB Wealth Management LLC's holdings in Ares Capital were worth $2,948,000 at the end of the most recent reporting period.

Other large investors have also recently added to or reduced their stakes in the company. Elequin Capital LP acquired a new stake in Ares Capital in the first quarter worth $30,000. Continuum Advisory LLC increased its position in Ares Capital by 320.7% in the first quarter. Continuum Advisory LLC now owns 1,628 shares of the investment management company's stock worth $36,000 after buying an additional 1,241 shares during the period. Wolff Wiese Magana LLC acquired a new stake in Ares Capital in the second quarter worth $40,000. Investment Management Corp VA ADV increased its position 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 worth $41,000 after buying an additional 1,206 shares during the period. Finally, PSI Advisors LLC increased its position 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 worth $47,000 after buying an additional 1,150 shares during the period. 27.38% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

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

Ares Capital Trading Down 1.4%

Shares of ARCC stock opened at $20.13 on Thursday. The stock has a 50-day simple moving average of $22.03 and a 200 day simple moving average of $21.73. Ares Capital Corporation has a fifty-two week low of $18.26 and a fifty-two week high of $23.84. The stock has a market capitalization of $14.20 billion, a P/E ratio of 9.82 and a beta of 0.68. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 1.01.

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

Ares Capital Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Monday, September 15th were paid a dividend of $0.48 per share. The ex-dividend date of this dividend was Monday, September 15th. This represents a $1.92 annualized dividend and a yield of 9.5%. Ares Capital's dividend payout ratio (DPR) is currently 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.

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