Border to Coast Pensions Partnership Ltd Buys 225,000 Shares of Ares Capital Corporation $ARCC

Key Points

• Border to Coast Pensions Partnership Ltd increased its stake in Ares Capital by 11.4% in the first quarter, buying an additional 225,000 shares and bringing its total holding to 2.2 million shares valued at about $39.8 million.
• Ares Capital recently reported quarterly earnings of $0.47 per share, missing analyst expectations by $0.01, while revenue came in at $763 million versus the $778 million consensus estimate.
• The company declared a quarterly dividend of $0.48 per share, implying an annualized yield of 10.5%, though its payout ratio is high at 117.79%.

Border to Coast Pensions Partnership Ltd raised its stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 11.4% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 2,200,000 shares of the investment management company's stock after purchasing an additional 225,000 shares during the quarter. Border to Coast Pensions Partnership Ltd owned 0.31% of Ares Capital worth $39,765,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors also recently modified their holdings of the stock. Morgan Stanley boosted its position in shares of Ares Capital by 2.0% during the fourth quarter. Morgan Stanley now owns 17,558,581 shares of the investment management company's stock valued at $355,210,000 after buying an additional 341,578 shares during the last quarter. UBS Group AG grew its holdings in Ares Capital by 41.8% during the fourth quarter. UBS Group AG now owns 11,201,905 shares of the investment management company's stock worth $226,615,000 after buying an additional 3,301,890 shares in the last quarter. Bank of America Corp DE raised its position in Ares Capital by 8.9% in the 2nd quarter. Bank of America Corp DE now owns 8,678,129 shares of the investment management company's stock valued at $190,572,000 after buying an additional 705,882 shares during the last quarter. Legal & General Group Plc raised its position in Ares Capital by 16.4% in the 4th quarter. Legal & General Group Plc now owns 5,408,067 shares of the investment management company's stock valued at $109,432,000 after buying an additional 761,838 shares during the last quarter. Finally, Wells Fargo & Company MN raised its position in Ares Capital by 1.5% in the 4th quarter. Wells Fargo & Company MN now owns 4,387,637 shares of the investment management company's stock valued at $88,762,000 after buying an additional 63,796 shares during the last quarter. Institutional investors own 27.38% of the company's stock.

Ares Capital Trading Up 1.2%

NASDAQ ARCC opened at $18.21 on Friday. The business's fifty day moving average is $18.73 and its 200-day moving average is $19.19. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.40 and a quick ratio of 1.40. The stock has a market capitalization of $13.08 billion, a price-to-earnings ratio of 11.17 and a beta of 0.56. Ares Capital Corporation has a one year low of $17.40 and a one year high of $23.42.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The investment management company reported $0.47 earnings per share for the quarter, missing the consensus estimate of $0.48 by ($0.01). Ares Capital had a net margin of 37.30% and a return on equity of 9.85%. The company had revenue of $763.00 million for the quarter, compared to the consensus estimate of $778.00 million. During the same quarter in the previous year, the company posted $0.50 EPS. Ares Capital's quarterly revenue was up 4.2% compared to the same quarter last year. Equities research analysts predict that Ares Capital Corporation will post 1.91 EPS for the current year.

Ares Capital Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be paid a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 10.5%. The ex-dividend date is Monday, June 15th. Ares Capital's payout ratio is presently 117.79%.

Analyst Upgrades and Downgrades

ARCC has been the topic of a number of analyst reports. Keefe, Bruyette & Woods cut their price objective on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating on the stock in a report on Thursday, April 16th. UBS Group lowered their target price on shares of Ares Capital from $21.00 to $19.00 and set a "neutral" rating for the company in a report on Friday, March 13th. Oppenheimer lowered their target price on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a report on Wednesday, April 29th. B. Riley Financial dropped their price target on shares of Ares Capital from $22.00 to $20.00 and set a "buy" rating on the stock in a research report on Wednesday, April 29th. Finally, JPMorgan Chase & Co. cut their price target on shares of Ares Capital from $22.00 to $19.00 and set an "overweight" rating on the stock in a report on Friday, March 13th. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $20.65.

Ares Capital Company Profile

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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