Kovitz Investment Group Partners LLC Grows Holdings in Ares Capital Corporation $ARCC

Key Points

• Kovitz Investment Group Partners LLC has increased its stake in Ares Capital Corporation (NASDAQ:ARCC) by 14.8%, bringing their total ownership to 438,266 shares valued at approximately $9.71 million.
• Ares Capital reported $0.50 earnings per share for the last quarter, missing estimates of $0.51, with total revenues of $614 million compared to expected revenues of $748.76 million.
• The company recently declared a quarterly dividend of $0.48 per share, representing an annualized yield of 8.6%, with a dividend payout ratio of 93.66%.

Kovitz Investment Group Partners LLC boosted its position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 14.8% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 438,266 shares of the investment management company's stock after purchasing an additional 56,633 shares during the period. Kovitz Investment Group Partners LLC owned about 0.06% of Ares Capital worth $9,712,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also bought and sold shares of the company. Neuberger Berman Group LLC lifted its holdings in Ares Capital by 0.6% in the 1st quarter. Neuberger Berman Group LLC now owns 803,919 shares of the investment management company's stock worth $17,815,000 after purchasing an additional 4,407 shares in the last quarter. Boston Partners lifted its holdings in Ares Capital by 11.7% in the 1st quarter. Boston Partners now owns 488,486 shares of the investment management company's stock worth $10,820,000 after purchasing an additional 51,271 shares in the last quarter. LGT Group Foundation lifted its holdings in Ares Capital by 30.1% in the 1st quarter. LGT Group Foundation now owns 499,153 shares of the investment management company's stock worth $11,061,000 after purchasing an additional 115,543 shares in the last quarter. Rathbones Group PLC lifted its holdings in Ares Capital by 31.1% in the 1st quarter. Rathbones Group PLC now owns 228,292 shares of the investment management company's stock worth $5,059,000 after purchasing an additional 54,182 shares in the last quarter. Finally, Anfield Capital Management LLC lifted its holdings in Ares Capital by 9.6% in the 1st quarter. Anfield Capital Management LLC now owns 12,816 shares of the investment management company's stock worth $284,000 after purchasing an additional 1,127 shares in the last quarter. 27.38% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on ARCC shares. Wall Street Zen raised Ares Capital from a "sell" rating to a "hold" rating in a report on Saturday, August 16th. Royal Bank Of Canada decreased their price objective on Ares Capital from $24.00 to $23.00 and set an "outperform" rating on the stock in a report on Tuesday, May 6th. Citigroup reaffirmed an "outperform" rating on shares of Ares Capital in a report on Thursday, July 31st. Wells Fargo & Company upped their price objective on Ares Capital from $22.00 to $23.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Finally, JPMorgan Chase & Co. decreased their price objective on Ares Capital from $24.50 to $22.00 and set an "overweight" rating on the stock in a report on Thursday, April 24th. Seven research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $22.86.

Ares Capital Trading Down 0.2%

ARCC traded down $0.0550 on Thursday, reaching $22.2350. 799,853 shares of the company traded hands, compared to its average volume of 4,489,121. 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 company has a market cap of $15.68 billion, a P/E ratio of 10.85 and a beta of 0.70. The firm has a fifty day simple moving average of $22.36 and a two-hundred day simple moving average of $21.98. Ares Capital Corporation has a one year low of $18.26 and a one year high of $23.84.

Ares Capital (NASDAQ:ARCC - Get Free Report) last issued its 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 firm had revenue of $614.00 million for the quarter, compared to the consensus estimate of $748.76 million. Ares Capital had a net margin of 44.94% and a return on equity of 10.48%. During the same period last year, the firm earned $0.61 earnings per share. As a group, equities research analysts expect that Ares Capital Corporation will post 2.19 earnings per share for the current year.

Ares Capital Announces Dividend

The firm also recently declared 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 dividend payout ratio (DPR) is currently 93.66%.

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.