Ares Capital Corporation (NASDAQ:ARCC) Shares Purchased by Prairiewood Capital LLC

Prairiewood Capital LLC grew its stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 8.5% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 196,221 shares of the investment management company's stock after buying an additional 15,379 shares during the quarter. Ares Capital comprises 1.8% of Prairiewood Capital LLC's holdings, making the stock its 17th biggest position. Prairiewood Capital LLC's holdings in Ares Capital were worth $4,348,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors also recently made changes to their positions in the company. Montag & Caldwell LLC acquired a new position in Ares Capital in the fourth quarter worth approximately $33,000. VSM Wealth Advisory LLC purchased a new stake in shares of Ares Capital in the 4th quarter valued at approximately $35,000. Continuum Advisory LLC boosted its stake in Ares Capital by 320.7% in the 1st quarter. Continuum Advisory LLC now owns 1,628 shares of the investment management company's stock worth $36,000 after purchasing an additional 1,241 shares during the period. PSI Advisors LLC grew its position in Ares Capital by 121.1% during the 1st quarter. PSI Advisors LLC now owns 2,100 shares of the investment management company's stock worth $47,000 after purchasing an additional 1,150 shares in the last quarter. Finally, Promus Capital LLC purchased a new position in Ares Capital during the 4th quarter worth approximately $48,000. 27.38% of the stock is owned by institutional investors and hedge funds.

Ares Capital Price Performance

Ares Capital stock opened at $21.95 on Monday. The business has a 50 day simple moving average of $21.48 and a 200 day simple moving average of $21.91. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.40 and a quick ratio of 1.40. Ares Capital Corporation has a one year low of $18.26 and a one year high of $23.84. The company has a market capitalization of $15.24 billion, a PE ratio of 10.71 and a beta of 0.68.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its earnings results on Tuesday, April 29th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.54 by ($0.04). The firm had revenue of $599.00 million during the quarter, compared to the consensus estimate of $769.32 million. Ares Capital had a net margin of 43.50% and a return on equity of 11.05%. The business's revenue was up 4.4% on a year-over-year basis. During the same quarter last year, the firm posted $0.59 EPS. On average, sell-side analysts forecast that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 30th. Shareholders of record on Friday, June 13th will be paid a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 8.75%. The ex-dividend date of this dividend is Friday, June 13th. Ares Capital's dividend payout ratio is presently 93.66%.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the company. UBS Group decreased their target price on Ares Capital from $22.00 to $21.00 and set a "neutral" rating for the company in a research report on Thursday, April 17th. Keefe, Bruyette & Woods decreased their target price on shares of Ares Capital from $23.00 to $22.00 and set an "outperform" rating for the company in a research note on Tuesday, April 8th. B. Riley upgraded Ares Capital to a "hold" rating in a report on Monday, June 16th. JPMorgan Chase & Co. decreased their price objective on shares of Ares Capital from $24.50 to $22.00 and set an "overweight" rating for the company in a report on Thursday, April 24th. Finally, Royal Bank Of Canada cut their price objective on Ares Capital from $24.00 to $23.00 and set an "outperform" rating for the company in a research report on Tuesday, May 6th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, five have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, Ares Capital has an average rating of "Moderate Buy" and a consensus target price of $22.00.

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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