Beacon Pointe Advisors LLC Invests $10.75 Million in Ares Capital Corporation $ARCC

Key Points

• Beacon Pointe Advisors acquired 580,351 shares of Ares Capital worth approximately $10.75 million, representing about 0.08% of the company. Other institutional investors also initiated positions, with institutional ownership reaching 27.38%.
• Ares Capital reported quarterly EPS of $0.47, matching analyst expectations, while revenue of $768 million came in slightly below estimates.
• The company declared a quarterly dividend of $0.48 per share, or $1.92 annualized, implying a 9.6% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $20.40, despite some recent target-price cuts.

Beacon Pointe Advisors LLC purchased a new position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 580,351 shares of the investment management company's stock, valued at approximately $10,754,000. Beacon Pointe Advisors LLC owned approximately 0.08% of Ares Capital at the end of the most recent reporting period.

A number of other large investors also recently bought and sold shares of the business. Orion Capital Management LLC purchased a new stake in shares of Ares Capital in the 2nd quarter worth approximately $25,000. Glenview Trust Co bought a new position in Ares Capital during the 2nd quarter valued at approximately $337,000. Empowered Funds LLC purchased a new position in Ares Capital during the second quarter valued at $708,000. United Capital Financial Advisors LLC bought a new stake in Ares Capital in the second quarter worth $1,506,000. Finally, Dearborn Partners LLC bought a new stake in Ares Capital in the second quarter worth $222,000. 27.38% of the stock is owned by hedge funds and other institutional investors.

Ares Capital Price Performance

Shares of NASDAQ:ARCC opened at $19.95 on Friday. The company has a market capitalization of $14.32 billion, a P/E ratio of 14.78 and a beta of 0.56. Ares Capital Corporation has a 1-year low of $17.40 and a 1-year high of $22.51. The firm's 50 day simple moving average is $19.10 and its two-hundred day simple moving average is $18.84. 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 earnings results on Wednesday, July 29th. The investment management company reported $0.47 earnings per share for the quarter, meeting analysts' consensus estimates of $0.47. The company had revenue of $768.00 million for the quarter, compared to analysts' expectations of $770.19 million. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. During the same quarter in the previous year, the company earned $0.50 EPS. Research analysts expect that Ares Capital Corporation will post 1.91 EPS for the current fiscal year.

Ares Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be issued a dividend of $0.48 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.92 dividend on an annualized basis and a yield of 9.6%. Ares Capital's dividend payout ratio (DPR) is currently 142.22%.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on ARCC shares. Wall Street Zen downgraded Ares Capital from a "hold" rating to a "sell" rating in a report on Sunday, August 2nd. Weiss Ratings reiterated a "hold (c)" rating on shares of Ares Capital in a research note on Tuesday, June 9th. Truist Financial cut their price objective on shares of Ares Capital from $22.00 to $21.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th. Wells Fargo & Company restated an "equal weight" rating and set a $19.00 price objective (down from $20.00) on shares of Ares Capital in a research note on Friday, June 12th. Finally, Keefe, Bruyette & Woods decreased their target price on shares of Ares Capital from $21.00 to $20.00 and set an "outperform" rating for the company in a report on Thursday, July 30th. Eight analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, Ares Capital currently has an average rating of "Moderate Buy" and a consensus price target 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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