Ares Capital Corporation (NASDAQ:ARCC) Shares Bought by Carnegie Investment Counsel

Key Points

• Carnegie Investment Counsel increased its stake in Ares Capital Corporation by 4.5%, owning a total of 322,812 shares valued at $7,154,000.
• Ares Capital recently announced a quarterly dividend of $0.48 per share, with an annualized dividend yield of 8.31% and a payout ratio of 93.66%.
• The company's earnings report revealed a miss on EPS estimates, with reported earnings of $0.50 per share against an expected $0.54, while revenue was down from projections at $599 million.

Carnegie Investment Counsel lifted its holdings in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 4.5% during the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 322,812 shares of the investment management company's stock after buying an additional 13,790 shares during the quarter. Carnegie Investment Counsel's holdings in Ares Capital were worth $7,154,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Montag & Caldwell LLC bought a new position in Ares Capital in the fourth quarter worth approximately $33,000. Continuum Advisory LLC grew its stake 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 worth $36,000 after purchasing an additional 1,241 shares in the last quarter. PSI Advisors LLC grew its stake 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 worth $47,000 after purchasing an additional 1,150 shares in the last quarter. Archer Investment Corp grew its stake in Ares Capital by 281.3% in the first quarter. Archer Investment Corp now owns 2,440 shares of the investment management company's stock worth $54,000 after purchasing an additional 1,800 shares in the last quarter. Finally, Rosenberg Matthew Hamilton grew its stake in Ares Capital by 137.6% in the first quarter. Rosenberg Matthew Hamilton now owns 2,704 shares of the investment management company's stock worth $60,000 after purchasing an additional 1,566 shares in the last quarter. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

Ares Capital Stock Down 1.5%

Shares of Ares Capital stock traded down $0.35 during trading on Monday, reaching $22.77. The company's stock had a trading volume of 1,121,014 shares, compared to its average volume of 4,583,224. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.02. The company has a market cap of $15.80 billion, a price-to-earnings ratio of 11.10 and a beta of 0.67. Ares Capital Corporation has a 1-year low of $18.26 and a 1-year high of $23.84. The company has a 50-day simple moving average of $22.17 and a two-hundred day simple moving average of $22.04.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its quarterly earnings data on Tuesday, April 29th. The investment management company reported $0.50 earnings per share for the quarter, missing analysts' consensus estimates of $0.54 by ($0.04). The business had revenue of $599.00 million during the quarter, compared to analyst estimates 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 for the quarter was up 4.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.59 EPS. As a group, equities analysts forecast that Ares Capital Corporation will post 2.19 earnings per share for the current year.

Ares Capital Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Friday, June 13th were given a dividend of $0.48 per share. The ex-dividend date of this dividend was Friday, June 13th. This represents a $1.92 dividend on an annualized basis and a yield of 8.43%. Ares Capital's dividend payout ratio is currently 93.66%.

Analyst Upgrades and Downgrades

ARCC has been the topic of several research analyst reports. JPMorgan Chase & Co. dropped their price objective on Ares Capital from $24.50 to $22.00 and set an "overweight" rating on the stock in a research note on Thursday, April 24th. B. Riley raised Ares Capital to a "hold" rating in a research report on Monday, June 16th. UBS Group increased their target price on Ares Capital from $22.00 to $22.50 and gave the company a "neutral" rating in a research report on Wednesday, July 16th. Royal Bank Of Canada dropped their target price on Ares Capital from $24.00 to $23.00 and set an "outperform" rating on the stock in a research report on Tuesday, May 6th. Finally, Keefe, Bruyette & Woods dropped their target price on Ares Capital from $23.00 to $22.00 and set an "outperform" rating on the stock in a research report on Tuesday, April 8th. One investment 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 company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $22.21.

Ares Capital Company 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.