Dickmeyer Boyce Financial Management Inc. Makes New Investment in Ares Capital Corporation $ARCC

Key Points

• Dickmeyer Boyce Financial Management disclosed a new first-quarter stake in Ares Capital, buying 63,395 shares valued at about $1.14 million.
• Other institutions also added to or initiated positions in ARCC, and institutional investors now own 27.38% of the stock.
• Ares Capital recently reported Q1 EPS of $0.47, slightly below estimates, while paying a quarterly dividend of $0.48 per share that implies a 10.3% yield.

Dickmeyer Boyce Financial Management Inc. purchased a new position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) in the first quarter, according to its most recent disclosure with the SEC. The institutional investor purchased 63,395 shares of the investment management company's stock, valued at approximately $1,142,000.

Several other institutional investors and hedge funds have also made changes to their positions in ARCC. Strs Ohio bought a new stake in Ares Capital during the first quarter worth approximately $189,210,000. UBS Group AG boosted its stake in Ares Capital by 41.8% during the 4th quarter. UBS Group AG now owns 11,201,905 shares of the investment management company's stock valued at $226,615,000 after purchasing an additional 3,301,890 shares in the last quarter. Marshall Wace LLP bought a new position in Ares Capital during the 3rd quarter valued at $36,943,000. Altshuler Shaham Ltd acquired a new position in shares of Ares Capital during the 4th quarter valued at $33,380,000. Finally, Michael & Susan Dell Foundation acquired a new position in shares of Ares Capital during the 4th quarter valued at $26,089,000. 27.38% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on ARCC. JPMorgan Chase & Co. cut their price objective on Ares Capital from $19.00 to $18.50 and set an "overweight" rating for the company in a report on Thursday, July 2nd. Oppenheimer lowered their target price on Ares Capital from $22.00 to $21.00 and set an "outperform" rating on the stock in a report on Wednesday, April 29th. Citizens Jmp dropped their price target 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. Weiss Ratings restated a "hold (c)" rating on shares of Ares Capital in a report on Tuesday, June 9th. Finally, Wells Fargo & Company restated an "equal weight" rating and issued a $19.00 target price (down from $20.00) on shares of Ares Capital in a report on Friday, June 12th. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $20.60.

Ares Capital Trading Down 1.3%

NASDAQ:ARCC opened at $18.61 on Friday. The company has a market capitalization of $13.36 billion, a P/E ratio of 11.42 and a beta of 0.56. The stock's 50 day moving average price is $18.66 and its 200 day moving average price is $18.97. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.40 and a current ratio of 1.40. Ares Capital Corporation has a 52 week low of $17.40 and a 52 week high of $23.16.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its earnings results on Tuesday, April 28th. The investment management company reported $0.47 EPS for the quarter, missing the consensus estimate of $0.48 by ($0.01). The business had revenue of $763.00 million during the quarter, compared to the consensus estimate of $778.00 million. Ares Capital had a return on equity of 9.85% and a net margin of 37.30%.The business's revenue was up 4.2% on a year-over-year basis. During the same period in the prior year, the firm earned $0.50 earnings per share. On average, research analysts forecast that Ares Capital Corporation will post 1.9 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th were given a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 10.3%. The ex-dividend date of this dividend was Monday, June 15th. Ares Capital's dividend payout ratio is presently 117.79%.

About Ares Capital

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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