Callahan Advisors LLC Invests $377,000 in Ares Capital Corporation (NASDAQ:ARCC)

Callahan Advisors LLC acquired a new stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund acquired 17,027 shares of the investment management company's stock, valued at approximately $377,000.

Several other institutional investors and hedge funds have also recently modified their holdings of ARCC. Montag & Caldwell LLC acquired a new position in shares of Ares Capital in the fourth quarter valued at $33,000. VSM Wealth Advisory LLC acquired a new position in shares of Ares Capital in the fourth quarter valued at $35,000. Continuum Advisory LLC increased its holdings in shares of Ares Capital by 320.7% in the first quarter. Continuum Advisory LLC now owns 1,628 shares of the investment management company's stock valued at $36,000 after purchasing an additional 1,241 shares during the last quarter. PSI Advisors LLC increased its holdings in shares of Ares Capital by 121.1% in the first quarter. PSI Advisors LLC now owns 2,100 shares of the investment management company's stock valued at $47,000 after purchasing an additional 1,150 shares during the last quarter. Finally, Rosenberg Matthew Hamilton increased its holdings in shares of Ares Capital by 137.6% in the first quarter. Rosenberg Matthew Hamilton now owns 2,704 shares of the investment management company's stock valued at $60,000 after purchasing an additional 1,566 shares during the last quarter. 27.38% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

ARCC has been the topic of several research reports. Keefe, Bruyette & Woods decreased their price objective on shares of Ares Capital from $23.00 to $22.00 and set an "outperform" rating on the stock in a report on Tuesday, April 8th. JPMorgan Chase & Co. decreased their price target on shares of Ares Capital from $24.50 to $22.00 and set an "overweight" rating on the stock in a research note on Thursday, April 24th. UBS Group decreased their price target on shares of Ares Capital from $22.00 to $21.00 and set a "neutral" rating on the stock in a research note on Thursday, April 17th. B. Riley upgraded shares of Ares Capital to a "hold" rating in a research note on Monday, June 16th. Finally, Wells Fargo & Company upped their price target on shares of Ares Capital from $21.00 to $22.00 and gave the company an "overweight" rating in a research note on Friday, June 27th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, five have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $22.00.

Ares Capital Price Performance

ARCC traded up $0.06 on Friday, hitting $22.84. 2,646,760 shares of the stock were exchanged, compared to its average volume of 4,214,170. Ares Capital Corporation has a 12 month low of $18.26 and a 12 month high of $23.84. The business has a 50-day moving average of $21.82 and a two-hundred day moving average of $21.97. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.40 and a quick ratio of 1.40. The firm has a market capitalization of $15.86 billion, a price-to-earnings ratio of 11.14 and a beta of 0.67.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its earnings results on Tuesday, April 29th. The investment management company reported $0.50 EPS for the quarter, missing analysts' consensus estimates of $0.54 by ($0.04). The company had revenue of $599.00 million during the quarter, compared to the consensus estimate of $769.32 million. Ares Capital had a return on equity of 11.05% and a net margin of 43.50%. The firm's revenue was up 4.4% compared to the same quarter last year. During the same period last year, the company posted $0.59 EPS. Sell-side analysts forecast that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 13th were issued a $0.48 dividend. The ex-dividend date of this dividend was Friday, June 13th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 8.41%. Ares Capital's dividend payout ratio (DPR) is currently 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.