Fiduciary Family Office LLC Takes Position in Ares Capital Corporation (NASDAQ:ARCC)

Key Points

• Fiduciary Family Office LLC has made a new investment of $248,000 in Ares Capital Corporation, acquiring 11,186 shares in the first quarter.
• Ares Capital announced a quarterly dividend of $0.48 per share, representing an annualized yield of 8.5%, with the dividend payout ratio currently at 93.66%.
• A number of analysts have provided mixed ratings on Ares Capital, with a consensus rating of "Moderate Buy" and a target price averaging around $22.86.

Fiduciary Family Office LLC bought a new position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 11,186 shares of the investment management company's stock, valued at approximately $248,000.

Several other hedge funds have also modified their holdings of ARCC. Montag & Caldwell LLC acquired a new stake in shares of Ares Capital in the fourth quarter worth approximately $33,000. Continuum Advisory LLC boosted its position in shares of 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 acquiring an additional 1,241 shares during the last quarter. Investment Management Corp VA ADV boosted its position in shares of 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 worth $41,000 after acquiring an additional 1,206 shares during the last quarter. PSI Advisors LLC boosted its position in shares of 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 acquiring an additional 1,150 shares during the last quarter. Finally, Archer Investment Corp raised its holdings 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 valued at $54,000 after buying an additional 1,800 shares during the period. 27.38% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms recently commented on ARCC. UBS Group raised their price target on shares of Ares Capital from $22.00 to $22.50 and gave the company a "neutral" rating in a report on Wednesday, July 16th. JMP Securities set a $23.00 price target on shares of Ares Capital and gave the company a "market outperform" rating in a report on Thursday, July 31st. Royal Bank Of Canada cut their price target on shares of Ares Capital from $24.00 to $23.00 and set an "outperform" rating on the stock in a report on Tuesday, May 6th. JPMorgan Chase & Co. dropped their price objective on shares of Ares Capital from $24.50 to $22.00 and set an "overweight" rating on the stock in a research note on Thursday, April 24th. Finally, B. Riley upgraded shares of Ares Capital from a "neutral" rating to a "buy" rating and lifted their price objective for the company from $22.50 to $23.50 in a research note on Wednesday, July 30th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and seven have assigned a buy rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $22.86.

Ares Capital Stock Up 0.1%

Shares of ARCC traded up $0.02 during midday trading on Tuesday, hitting $22.47. The company had a trading volume of 5,412,204 shares, compared to its average volume of 3,538,100. The stock has a market cap of $15.85 billion, a price-to-earnings ratio of 10.96 and a beta of 0.70. The company's 50 day moving average price is $22.33 and its 200 day moving average price is $22.01. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 1.01. Ares Capital Corporation has a 52 week low of $18.26 and a 52 week high of $23.84.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, missing the consensus estimate 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 for the quarter, compared to analyst estimates of $748.76 million. During the same quarter in the previous year, the company earned $0.61 EPS. On average, equities research analysts predict that Ares Capital Corporation will post 2.19 EPS for the current year.

Ares Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th will be issued a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 8.5%. The ex-dividend date of this dividend is Monday, September 15th. Ares Capital's payout ratio is currently 93.66%.

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.