Bank of New York Mellon Corp Boosts Stake in Ares Capital Corporation (NASDAQ:ARCC)

Bank of New York Mellon Corp lifted its holdings in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 14.8% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 159,766 shares of the investment management company's stock after purchasing an additional 20,552 shares during the quarter. Bank of New York Mellon Corp's holdings in Ares Capital were worth $3,540,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also recently modified their holdings of the company. Thrivent Financial for Lutherans bought a new stake in shares of Ares Capital in the fourth quarter worth $314,000. JPMorgan Chase & Co. grew its holdings in Ares Capital by 26.0% during the fourth quarter. JPMorgan Chase & Co. now owns 4,268,547 shares of the investment management company's stock valued at $93,439,000 after purchasing an additional 881,450 shares during the period. Blair William & Co. IL grew its holdings in Ares Capital by 3.3% during the fourth quarter. Blair William & Co. IL now owns 280,705 shares of the investment management company's stock valued at $6,145,000 after purchasing an additional 8,986 shares during the period. Brown Brothers Harriman & Co. grew its holdings in Ares Capital by 16.0% during the fourth quarter. Brown Brothers Harriman & Co. now owns 36,159 shares of the investment management company's stock valued at $792,000 after purchasing an additional 4,980 shares during the period. Finally, Maridea Wealth Management LLC bought a new stake in Ares Capital during the fourth quarter valued at about $686,000. Hedge funds and other institutional investors own 27.38% of the company's stock.

Ares Capital Price Performance

NASDAQ:ARCC opened at $23.11 on Friday. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 1.02. The company has a market capitalization of $16.04 billion, a P/E ratio of 11.27 and a beta of 0.67. Ares Capital Corporation has a 12 month low of $18.26 and a 12 month high of $23.84. The business's 50-day moving average is $22.17 and its 200 day moving average is $22.04.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its earnings results on Tuesday, April 29th. The investment management company reported $0.50 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 analysts' expectations of $769.32 million. Ares Capital had a return on equity of 11.05% and a net margin of 43.50%. Ares Capital's quarterly revenue was up 4.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.59 earnings per share. On average, equities research analysts forecast 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 Monday, June 30th. Investors of record on Friday, June 13th were given a $0.48 dividend. The ex-dividend date of this dividend was Friday, June 13th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 8.31%. Ares Capital's dividend payout ratio is currently 93.66%.

Wall Street Analyst Weigh In

Several analysts have issued reports on ARCC shares. Royal Bank Of Canada cut their price target on Ares Capital from $24.00 to $23.00 and set an "outperform" rating for the company in a report on Tuesday, May 6th. B. Riley raised Ares Capital to a "hold" rating in a report on Monday, June 16th. UBS Group boosted their price objective on Ares Capital from $22.00 to $22.50 and gave the company a "neutral" rating in a research report on Wednesday, July 16th. JPMorgan Chase & Co. lowered their price objective on Ares Capital from $24.50 to $22.00 and set an "overweight" rating on the stock in a research report on Thursday, April 24th. Finally, Keefe, Bruyette & Woods lowered their price objective on Ares Capital from $23.00 to $22.00 and set an "outperform" rating on the stock in a research report on Tuesday, April 8th. One research analyst has rated the stock with a sell rating, three have issued a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $22.21.

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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