Cornerstone Select Advisors LLC Raises Holdings in Ares Capital Corporation $ARCC

Key Points

• Cornerstone Select Advisors LLC increased its holdings in Ares Capital Corporation by 10.3% in Q1 2023, now owning 141,291 shares valued at approximately $3.13 million.
• Ares Capital's quarterly earnings showed an EPS of $0.50, slightly missing the expected $0.51, with a revenue of $614 million for the quarter.
• The company declared a quarterly dividend of $0.48, reflecting an annualized payout of $1.92, which gives a dividend yield of 8.6%.

Cornerstone Select Advisors LLC raised its holdings in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 10.3% during the first quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 141,291 shares of the investment management company's stock after buying an additional 13,159 shares during the quarter. Ares Capital comprises 3.0% of Cornerstone Select Advisors LLC's investment portfolio, making the stock its 6th largest position. Cornerstone Select Advisors LLC's holdings in Ares Capital were worth $3,131,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Elequin Capital LP purchased a new position in shares of Ares Capital in the 1st quarter valued at approximately $30,000. Continuum Advisory LLC raised its stake in Ares Capital by 320.7% during the first quarter. Continuum Advisory LLC now owns 1,628 shares of the investment management company's stock valued at $36,000 after buying an additional 1,241 shares during the last quarter. Investment Management Corp VA ADV raised its stake in Ares Capital by 193.9% during 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 buying an additional 1,206 shares during the last quarter. PSI Advisors LLC raised its stake in Ares Capital by 121.1% during the first quarter. PSI Advisors LLC now owns 2,100 shares of the investment management company's stock valued at $47,000 after buying an additional 1,150 shares during the last quarter. Finally, Archer Investment Corp raised its stake in Ares Capital by 281.3% during the first quarter. Archer Investment Corp now owns 2,440 shares of the investment management company's stock valued at $54,000 after buying an additional 1,800 shares during the last quarter. Hedge funds and other institutional investors own 27.38% of the company's stock.

Ares Capital Stock Down 1.1%

ARCC stock opened at $22.41 on Monday. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.14 and a quick ratio of 1.14. Ares Capital Corporation has a 1-year low of $18.26 and a 1-year high of $23.84. The stock has a market capitalization of $15.81 billion, a P/E ratio of 10.93 and a beta of 0.70. The business has a fifty day moving average price of $22.36 and a 200-day moving average price of $21.98.

Ares Capital (NASDAQ:ARCC - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The investment management company reported $0.50 EPS for the quarter, missing the consensus estimate of $0.51 by ($0.01). Ares Capital had a return on equity of 10.48% and a net margin of 44.94%. The firm had revenue of $614.00 million during the quarter, compared to the consensus estimate of $748.76 million. During the same period in the previous year, the firm earned $0.61 EPS. Equities analysts forecast 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 will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be issued a $0.48 dividend. The ex-dividend date of this dividend is Monday, September 15th. This represents a $1.92 annualized dividend and a dividend yield of 8.6%. Ares Capital's payout ratio is presently 93.66%.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on ARCC shares. UBS Group lifted their price objective on Ares Capital from $22.00 to $22.50 and gave the company a "neutral" rating in a research note on Wednesday, July 16th. JPMorgan Chase & Co. lowered their price objective on Ares Capital from $24.50 to $22.00 and set an "overweight" rating for the company in a research note on Thursday, April 24th. Royal Bank Of Canada lowered their price objective on Ares Capital from $24.00 to $23.00 and set an "outperform" rating for the company in a research note on Tuesday, May 6th. JMP Securities set a $23.00 price objective on Ares Capital and gave the company a "market outperform" rating in a research note on Thursday, July 31st. Finally, B. Riley upgraded Ares Capital from a "neutral" rating to a "buy" rating and boosted their price target for the stock from $22.50 to $23.50 in a research note on Wednesday, July 30th. Three investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $22.86.

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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