Capital Advisors Inc. OK Has $33.90 Million Stock Position in Ares Capital Corporation $ARCC

Key Points

• Capital Advisors Inc. OK increased its ownership in Ares Capital Corporation (NASDAQ: ARCC) to 1,543,773 shares, representing a 0.8% lift during the second quarter, valuing its stake at approximately $33.90 million.
• Ares Capital recently paid a quarterly dividend of $0.48, yielding 9.5%, with a dividend payout ratio of 93.66%.
• The company's latest earnings report showed a missed EPS estimate of $0.50 versus an expected $0.51, alongside a revenue of $614 million compared to forecasts of $748.76 million.

Capital Advisors Inc. OK lifted its stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 0.8% during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 1,543,773 shares of the investment management company's stock after purchasing an additional 12,930 shares during the quarter. Capital Advisors Inc. OK owned 0.22% of Ares Capital worth $33,901,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. Elequin Capital LP bought a new stake in shares of Ares Capital during the 1st quarter worth $30,000. Continuum Advisory LLC raised its position in 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. Wolff Wiese Magana LLC bought a new position in Ares Capital in the second quarter valued at about $40,000. Investment Management Corp VA ADV raised its position in Ares Capital by 193.9% in the first quarter. Investment Management Corp VA ADV now owns 1,828 shares of the investment management company's stock valued at $41,000 after purchasing an additional 1,206 shares during the last quarter. Finally, PSI Advisors LLC raised its position in 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. 27.38% of the stock is currently owned by institutional investors.

Ares Capital Trading Down 1.2%

Shares of Ares Capital stock opened at $20.15 on Monday. The company has a debt-to-equity ratio of 1.01, a quick ratio of 1.14 and a current ratio of 1.14. Ares Capital Corporation has a 52 week low of $18.26 and a 52 week high of $23.84. The stock has a 50 day moving average price of $21.91 and a two-hundred day moving average price of $21.71. The stock has a market capitalization of $14.21 billion, a PE ratio of 9.83 and a beta of 0.68.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The investment management company reported $0.50 EPS 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 firm had revenue of $614.00 million during the quarter, compared to analyst estimates of $748.76 million. During the same period last year, the business posted $0.61 EPS. As a group, equities analysts anticipate that Ares Capital Corporation will post 2.19 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th were paid a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 9.5%. The ex-dividend date of this dividend was Monday, September 15th. Ares Capital's dividend payout ratio (DPR) is 93.66%.

Wall Street Analyst Weigh In

ARCC has been the subject of several research reports. JMP Securities set a $23.00 target price on Ares Capital and gave the company a "market outperform" rating in a research report on Thursday, July 31st. B. Riley upgraded 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. Weiss Ratings reiterated a "buy (b)" rating on shares of Ares Capital in a research report on Saturday, September 27th. JPMorgan Chase & Co. dropped their target price on Ares Capital from $23.00 to $22.00 and set an "overweight" rating for the company in a research report on Wednesday, October 1st. Finally, Keefe, Bruyette & Woods increased their price target on Ares Capital from $22.00 to $23.00 and gave the company an "outperform" rating in a research note on Wednesday, July 30th. Eight investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average 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.

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