Bank of New York Mellon Corp Buys 83,841 Shares of Ares Capital Corporation $ARCC

Key Points

• Bank of New York Mellon increased its Ares Capital stake by 53.5% in the first quarter, acquiring 83,841 shares and bringing its holdings to 240,483 shares valued at approximately $4.33 million.
• Ares Capital reported quarterly EPS of $0.47, matching analyst expectations, while revenue of $768 million came in slightly below the $770.19 million consensus estimate.
• The company declared a quarterly dividend of $0.48 per share, equivalent to a $1.92 annualized payout and a 9.8% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $20.40.

Bank of New York Mellon Corp increased its stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 53.5% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 240,483 shares of the investment management company's stock after acquiring an additional 83,841 shares during the period. Bank of New York Mellon Corp's holdings in Ares Capital were worth $4,333,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in ARCC. Tectonic Advisors LLC raised its holdings in shares of Ares Capital by 10.8% in the fourth quarter. Tectonic Advisors LLC now owns 662,533 shares of the investment management company's stock valued at $13,403,000 after purchasing an additional 64,491 shares during the last quarter. Prairiewood Capital LLC boosted its holdings in Ares Capital by 22.9% during the fourth quarter. Prairiewood Capital LLC now owns 303,282 shares of the investment management company's stock worth $6,135,000 after purchasing an additional 56,465 shares during the last quarter. Eos Management L.P. acquired a new position in Ares Capital during the fourth quarter worth $1,416,000. Cornerstone Advisory LLC grew its position in Ares Capital by 1,022.6% in the fourth quarter. Cornerstone Advisory LLC now owns 145,943 shares of the investment management company's stock valued at $2,952,000 after purchasing an additional 132,943 shares in the last quarter. Finally, Advisors Capital Management LLC grew its position in Ares Capital by 13.5% in the fourth quarter. Advisors Capital Management LLC now owns 3,566,790 shares of the investment management company's stock valued at $72,156,000 after purchasing an additional 423,795 shares in the last quarter. 27.38% of the stock is owned by institutional investors.

Ares Capital Trading Up 1.6%

Shares of Ares Capital stock opened at $19.62 on Friday. The business has a fifty day simple moving average of $18.73 and a two-hundred day simple moving average of $18.86. Ares Capital Corporation has a 1 year low of $17.40 and a 1 year high of $22.76. The company has a market capitalization of $14.09 billion, a price-to-earnings ratio of 14.53 and a beta of 0.56. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.28 and a quick ratio of 1.28.

Ares Capital (NASDAQ:ARCC - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The investment management company reported $0.47 EPS for the quarter, meeting the consensus estimate of $0.47. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. The firm had revenue of $768.00 million for the quarter, compared to the consensus estimate of $770.19 million. During the same period in the previous year, the company earned $0.50 earnings per share. Research analysts forecast that Ares Capital Corporation will post 1.91 EPS for the current year.

Ares Capital Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be issued a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 9.8%. The ex-dividend date of this dividend is Tuesday, September 15th. Ares Capital's dividend payout ratio (DPR) is presently 142.22%.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on ARCC shares. JPMorgan Chase & Co. reduced their price objective on shares of Ares Capital from $19.00 to $18.50 and set an "overweight" rating for the company in a research note on Thursday, July 2nd. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Ares Capital in a research report on Tuesday, June 9th. Keefe, Bruyette & Woods dropped their target price on Ares Capital from $21.00 to $20.00 and set an "outperform" rating on the stock in a report on Thursday, July 30th. Royal Bank Of Canada reduced their price target on Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a research report on Wednesday, April 29th. Finally, Oppenheimer lowered their price target on Ares Capital from $22.00 to $21.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 29th. Eight investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $20.40.

About Ares Capital

Ares Capital Corporation NASDAQ: ARCC is a publicly traded business development company (BDC) that specializes in providing debt and equity financing solutions to U.S. middle-market companies. As a BDC, Ares Capital offers investors access to a diversified portfolio of tailored credit investments, including senior secured loans, unitranche financing, mezzanine debt and equity co-investments. The firm's flexible capital structures are designed to support companies seeking growth capital, refinancing or strategic acquisitions.

Through its credit platform, Ares Capital focuses on originations, underwriting and portfolio management across a range of industries, with a particular emphasis on sectors such as healthcare, technology, industrials and business services.

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