Bruni J V & Co. Co. Makes New Investment in Ares Capital Corporation $ARCC

Key Points

• Bruni J V & Co. Co. acquired 1.27 million Ares Capital shares worth approximately $23.5 million, representing about 2.1% of its portfolio and 0.18% of ARCC’s outstanding stock.
• Institutional ownership remains significant at 27.38%, with firms including Goldman Sachs, Empowered Funds and UBS also increasing or initiating positions in Ares Capital.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $20.40 target price. Ares Capital also declared a quarterly dividend of $0.48 per share, equivalent to a 9.8% annualized yield.

Bruni J V & Co. Co. purchased a new stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) during the second quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 1,266,283 shares of the investment management company's stock, valued at approximately $23,464,224,000. Ares Capital makes up approximately 2.1% of Bruni J V & Co. Co.'s investment portfolio, making the stock its 21st largest holding. Bruni J V & Co. Co. owned about 0.18% of Ares Capital as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also made changes to their positions in ARCC. AQR Capital Management LLC lifted its stake in Ares Capital by 6.5% in the first quarter. AQR Capital Management LLC now owns 16,502 shares of the investment management company's stock worth $365,000 after acquiring an additional 1,000 shares during the last quarter. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Ares Capital in the 1st quarter valued at $273,000. Goldman Sachs Group Inc. lifted its position in shares of Ares Capital by 14.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,835,007 shares of the investment management company's stock worth $62,824,000 after purchasing an additional 358,829 shares during the last quarter. Empowered Funds LLC grew its stake in shares of Ares Capital by 139.9% during the first quarter. Empowered Funds LLC now owns 27,655 shares of the investment management company's stock worth $613,000 after purchasing an additional 16,128 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new position in shares of Ares Capital during the first quarter worth $14,766,000. Hedge funds and other institutional investors own 27.38% of the company's stock.

Analysts Set New Price Targets

A number of research firms have weighed in on ARCC. Royal Bank Of Canada cut their price target on Ares Capital from $22.00 to $21.00 and set an "outperform" rating on the stock in a research note on Wednesday, April 29th. Citizens Jmp dropped their price objective on Ares Capital from $23.00 to $22.00 and set a "market outperform" rating on the stock in a report on Wednesday, April 22nd. Truist Financial decreased their target price on Ares Capital from $22.00 to $21.00 and set a "buy" rating for the company in a research note on Thursday, July 30th. JPMorgan Chase & Co. lowered their price target on Ares Capital from $19.00 to $18.50 and set an "overweight" rating for the company in a report on Thursday, July 2nd. Finally, Wall Street Zen lowered shares of Ares Capital from a "hold" rating to a "sell" rating in a research note on Sunday, August 2nd. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, Ares Capital currently has a consensus rating of "Moderate Buy" and a consensus target price of $20.40.

Ares Capital Stock Performance

Shares of ARCC stock opened at $19.67 on Wednesday. The stock's 50-day moving average is $18.89 and its two-hundred day moving average is $18.81. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.28 and a current ratio of 1.28. Ares Capital Corporation has a 1 year low of $17.40 and a 1 year high of $22.62. The firm has a market cap of $14.12 billion, a price-to-earnings ratio of 14.57 and a beta of 0.56.

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

Ares Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be issued a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.8%. The ex-dividend date of this dividend is Tuesday, September 15th. Ares Capital's payout ratio is presently 142.22%.

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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