FJ Capital Management LLC Has $1.53 Million Position in Ares Capital Corporation $ARCC

Key Points

• FJ Capital Management LLC increased its stake in Ares Capital Corporation by 41.9% in the first quarter, now holding 69,062 shares valued at approximately $1.53 million.
• Institutional investors and hedge funds own 27.38% of Ares Capital's stock, with several firms significantly increasing their positions in recent quarters.
• Ares Capital recently announced a quarterly dividend of $0.48 per share, which equates to an annualized yield of 8.6% and a payout ratio of 93.66%.

FJ Capital Management LLC grew its position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 41.9% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 69,062 shares of the investment management company's stock after buying an additional 20,387 shares during the quarter. FJ Capital Management LLC's holdings in Ares Capital were worth $1,530,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently made changes to their positions in the company. Bank of America Corp DE grew its holdings in shares of Ares Capital by 12.3% during the 4th quarter. Bank of America Corp DE now owns 7,951,926 shares of the investment management company's stock valued at $174,068,000 after purchasing an additional 871,370 shares during the last quarter. LPL Financial LLC grew its holdings in shares of Ares Capital by 9.0% during the 1st quarter. LPL Financial LLC now owns 3,567,816 shares of the investment management company's stock valued at $79,063,000 after purchasing an additional 293,442 shares during the last quarter. Allen Investment Management LLC grew its holdings in shares of Ares Capital by 8.4% during the 1st quarter. Allen Investment Management LLC now owns 2,975,197 shares of the investment management company's stock valued at $65,930,000 after purchasing an additional 230,924 shares during the last quarter. CCLA Investment Management grew its holdings in shares of Ares Capital by 26.5% during the 1st quarter. CCLA Investment Management now owns 2,799,023 shares of the investment management company's stock valued at $62,026,000 after purchasing an additional 587,068 shares during the last quarter. Finally, Raymond James Financial Inc. grew its holdings in shares of Ares Capital by 2.4% during the 1st quarter. Raymond James Financial Inc. now owns 2,720,010 shares of the investment management company's stock valued at $60,275,000 after purchasing an additional 63,082 shares during the last quarter. 27.38% of the stock is currently owned by institutional investors and hedge funds.

Ares Capital Stock Up 0.3%

Shares of Ares Capital stock traded up $0.07 during trading on Friday, reaching $22.44. 3,403,286 shares of the company traded hands, compared to its average volume of 2,980,822. 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 company has a 50 day moving average price of $22.53 and a 200-day moving average price of $21.91. The firm has a market capitalization of $15.83 billion, a PE ratio of 10.95 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 earnings per share (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 company had revenue of $614.00 million for the quarter, compared to analyst estimates of $748.76 million. During the same quarter in the previous year, the firm earned $0.61 EPS. As a group, equities research analysts expect that Ares Capital Corporation will post 2.19 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The business also recently announced 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 dividend yield of 8.6%. The ex-dividend date is Monday, September 15th. Ares Capital's payout ratio is presently 93.66%.

Analyst Ratings Changes

Several equities research analysts recently issued reports on ARCC shares. Wells Fargo & Company lifted their price target on shares of Ares Capital from $22.00 to $23.00 and gave the company an "overweight" rating in a report on Wednesday, July 30th. UBS Group lifted their price target on shares of Ares Capital from $22.00 to $22.50 and gave the company a "neutral" rating in a report on Wednesday, July 16th. Wall Street Zen raised shares of Ares Capital from a "sell" rating to a "hold" rating in a report on Saturday, August 16th. Citigroup reaffirmed an "outperform" rating on shares of Ares Capital in a report on Thursday, July 31st. Finally, JMP Securities set a $23.00 price target on shares of Ares Capital and gave the company a "market outperform" rating in a 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's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $22.86.

Ares Capital Company 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.