Border to Coast Pensions Partnership Ltd Boosts Holdings in Ares Capital Corporation $ARCC

Key Points

• Border to Coast Pensions Partnership Ltd increased its stake in Ares Capital Corporation to 1,900,000 shares, representing a 2.7% increase and a valuation of $41.72 million.
• Ares Capital recently reported quarterly earnings of $0.50 per share, falling short of analysts' expectations by $0.01, with revenues of $614 million.
• The company declared a quarterly dividend of $0.48, yielding 8.9%, with a payout ratio of 93.66%, set to be paid to investors on September 30th.

Border to Coast Pensions Partnership Ltd increased its stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 2.7% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,900,000 shares of the investment management company's stock after purchasing an additional 50,000 shares during the quarter. Border to Coast Pensions Partnership Ltd owned 0.27% of Ares Capital worth $41,724,000 at the end of the most recent quarter.

Other large investors also recently bought and sold shares of the company. Kingstone Capital Partners Texas LLC purchased a new stake in shares of Ares Capital during the second quarter worth approximately $877,203,000. Confluence Investment Management LLC grew its holdings in Ares Capital by 0.6% during the 2nd quarter. Confluence Investment Management LLC now owns 3,796,791 shares of the investment management company's stock worth $83,378,000 after acquiring an additional 21,344 shares in the last quarter. Advisors Capital Management LLC raised its holdings in shares of Ares Capital by 3.0% in the 1st quarter. Advisors Capital Management LLC now owns 3,627,990 shares of the investment management company's stock valued at $80,396,000 after purchasing an additional 104,339 shares in the last quarter. LPL Financial LLC lifted its position in shares of Ares Capital by 9.0% during the 1st quarter. LPL Financial LLC now owns 3,567,816 shares of the investment management company's stock worth $79,063,000 after purchasing an additional 293,442 shares during the last quarter. Finally, Allen Investment Management LLC grew its stake in shares of Ares Capital by 8.4% during the first quarter. Allen Investment Management LLC now owns 2,975,197 shares of the investment management company's stock worth $65,930,000 after purchasing an additional 230,924 shares in the last quarter. Hedge funds and other institutional investors own 27.38% of the company's stock.

Ares Capital Stock Performance

Shares of ARCC stock traded down $0.62 during trading hours on Monday, hitting $20.94. The stock had a trading volume of 5,240,752 shares, compared to its average volume of 4,454,478. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.14 and a quick ratio of 1.14. The firm has a market capitalization of $14.77 billion, a PE ratio of 10.21 and a beta of 0.70. The stock's 50 day moving average is $22.42 and its 200 day moving average is $21.81. Ares Capital Corporation has a twelve month low of $18.26 and a twelve month high of $23.84.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its earnings results on Tuesday, July 29th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.51 by ($0.01). The business had revenue of $614.00 million for the quarter, compared to analysts' expectations of $748.76 million. Ares Capital had a return on equity of 10.48% and a net margin of 44.94%.During the same quarter last year, the business posted $0.61 earnings per share. As a group, research analysts forecast that Ares Capital Corporation will post 2.19 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be issued a dividend of $0.48 per share. The ex-dividend date of this dividend is Monday, September 15th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.2%. Ares Capital's dividend payout ratio (DPR) is currently 93.66%.

Analyst Ratings Changes

A number of analysts have weighed in on ARCC shares. Wells Fargo & Company raised their price target on Ares Capital from $22.00 to $23.00 and gave the company an "overweight" rating in a research note on Wednesday, July 30th. Keefe, Bruyette & Woods upped their price objective on Ares Capital from $22.00 to $23.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 30th. Wall Street Zen upgraded shares of Ares Capital from a "sell" rating to a "hold" rating in a research note on Saturday, August 16th. UBS Group boosted their price objective on shares of Ares Capital from $22.00 to $22.50 and gave the stock a "neutral" rating in a research report on Wednesday, July 16th. Finally, B. Riley raised shares of Ares Capital from a "neutral" rating to a "buy" rating and increased their target price for the company from $22.50 to $23.50 in a research report on Wednesday, July 30th. Seven investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $22.86.

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.