Family Wealth Partners LLC Makes New Investment in Ares Capital Corporation $ARCC

Key Points

• Family Wealth Partners LLC invested approximately $358,000 in 16,295 shares of Ares Capital Corporation during the second quarter, marking their first stake in the company.
• Ares Capital recently reported earnings per share (EPS) of $0.50 for the quarter, falling short of analysts' expectations, and generated revenue of $614 million, below the estimated $748.76 million.
• The company announced a quarterly dividend of $0.48, resulting in an annualized dividend yield of 9.2%, with a payout ratio of 93.66%.

Family Wealth Partners LLC purchased a new stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 16,295 shares of the investment management company's stock, valued at approximately $358,000.

Several other institutional investors have also recently made changes to their positions in ARCC. Vise Technologies Inc. purchased a new position in shares of Ares Capital during the fourth quarter valued at $214,000. Integrated Advisors Network LLC purchased a new position in shares of Ares Capital during the fourth quarter valued at $308,000. Sculati Wealth Management LLC increased its stake in shares of Ares Capital by 2.3% during the fourth quarter. Sculati Wealth Management LLC now owns 111,642 shares of the investment management company's stock valued at $2,444,000 after buying an additional 2,487 shares during the period. Palogic Value Management L.P. increased its stake in shares of Ares Capital by 5.0% during the fourth quarter. Palogic Value Management L.P. now owns 104,565 shares of the investment management company's stock valued at $2,289,000 after buying an additional 4,970 shares during the period. Finally, Wealth Enhancement Advisory Services LLC increased its stake in shares of Ares Capital by 14.5% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 305,583 shares of the investment management company's stock valued at $6,689,000 after buying an additional 38,624 shares during the period. Hedge funds and other institutional investors own 27.38% of the company's stock.

Ares Capital Stock Performance

Shares of NASDAQ:ARCC opened at $20.94 on Tuesday. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.14 and a quick ratio of 1.14. The business's 50 day moving average price is $22.38 and its 200-day moving average price is $21.79. The firm has a market capitalization of $14.77 billion, a PE ratio of 10.21 and a beta of 0.70. Ares Capital Corporation has a 1 year low of $18.26 and a 1 year high of $23.84.

Ares Capital (NASDAQ:ARCC - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.51 by ($0.01). The firm had revenue of $614.00 million during the quarter, compared to analyst estimates of $748.76 million. Ares Capital had a return on equity of 10.48% and a net margin of 44.94%.During the same period in the prior year, the firm earned $0.61 earnings per share. As a group, equities research analysts expect that Ares Capital Corporation will post 2.19 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be paid a $0.48 dividend. The ex-dividend date of this dividend is Monday, September 15th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.2%. Ares Capital's payout ratio is currently 93.66%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. UBS Group raised their price target on Ares Capital from $22.00 to $22.50 and gave the company a "neutral" rating in a research note on Wednesday, July 16th. Wall Street Zen raised Ares Capital from a "sell" rating to a "hold" rating in a research report on Saturday, August 16th. Keefe, Bruyette & Woods raised their price target on Ares Capital from $22.00 to $23.00 and gave the stock an "outperform" rating in a report on Wednesday, July 30th. Citigroup restated an "outperform" rating on shares of Ares Capital in a research note on Thursday, July 31st. Finally, Wells Fargo & Company raised their price objective on Ares Capital from $22.00 to $23.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 30th. Seven analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price 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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