Brown Lisle Cummings Inc. Acquires 13,566 Shares of Ares Capital Corporation $ARCC

Key Points

• Brown Lisle Cummings Inc. increased its holdings in Ares Capital Corporation by 10.2% during the 2nd quarter, now owning a total of 146,116 shares valued at approximately $3.2 million.
• Several institutional investors, including Continuum Advisory LLC and Investment Management Corp VA ADV, have raised their stakes in Ares Capital significantly in the 1st quarter.
• Analysts have set a new average target price of $22.86 for Ares Capital, with most ratings at "Buy" or "Market Outperform," despite a recent earnings report showing a miss in EPS estimates.

Brown Lisle Cummings Inc. grew its holdings in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 10.2% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 146,116 shares of the investment management company's stock after buying an additional 13,566 shares during the quarter. Brown Lisle Cummings Inc.'s holdings in Ares Capital were worth $3,209,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in ARCC. Elequin Capital LP bought a new position in Ares Capital in the 1st quarter valued at about $30,000. Continuum Advisory LLC raised its holdings in Ares Capital by 320.7% in the 1st quarter. Continuum Advisory LLC now owns 1,628 shares of the investment management company's stock valued at $36,000 after acquiring an additional 1,241 shares during the period. Investment Management Corp VA ADV raised its holdings in Ares Capital by 193.9% in the 1st quarter. Investment Management Corp VA ADV now owns 1,828 shares of the investment management company's stock valued at $41,000 after acquiring an additional 1,206 shares during the period. PSI Advisors LLC raised its holdings in Ares Capital by 121.1% in the 1st quarter. PSI Advisors LLC now owns 2,100 shares of the investment management company's stock valued at $47,000 after acquiring an additional 1,150 shares during the period. Finally, Archer Investment Corp raised its holdings in Ares Capital by 281.3% in the 1st quarter. Archer Investment Corp now owns 2,440 shares of the investment management company's stock valued at $54,000 after acquiring an additional 1,800 shares during the period. 27.38% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of research analysts have issued reports on ARCC shares. Citigroup restated an "outperform" rating on shares of Ares Capital in a research report on Thursday, July 31st. Wells Fargo & Company increased their price target on shares of Ares Capital from $22.00 to $23.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 30th. UBS Group increased their price target 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. JMP Securities set a $23.00 price target on shares of Ares Capital and gave the stock a "market outperform" rating in a research report on Thursday, July 31st. Finally, Keefe, Bruyette & Woods increased their price target on shares of Ares Capital from $22.00 to $23.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 30th. Seven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, Ares Capital has an average rating of "Moderate Buy" and an average target price of $22.86.

Ares Capital Stock Performance

Shares of Ares Capital stock opened at $20.46 on Friday. Ares Capital Corporation has a fifty-two week low of $18.26 and a fifty-two week high of $23.84. 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 $14.43 billion, a P/E ratio of 9.98 and a beta of 0.70. The company's 50 day moving average price is $22.18 and its two-hundred day moving average price is $21.75.

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

Ares Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be paid a dividend of $0.48 per share. The ex-dividend date of this dividend is Monday, September 15th. This represents a $1.92 annualized dividend and a dividend yield of 9.4%. Ares Capital's dividend payout ratio (DPR) is presently 93.66%.

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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