Floyd Financial Group LLC Acquires Shares of 40,822 Ares Capital Corporation $ARCC

Key Points

• Floyd Financial Group LLC acquired 40,822 shares of Ares Capital Corporation, valued at approximately $915,000, making it the fund's 27th largest holding.
• Analysts have adjusted their price targets for Ares Capital, with UBS Group raising it to $22.50 and Wells Fargo increasing it to $23.00, both maintaining positive ratings for the stock.
• Ares Capital recently declared a quarterly dividend of $0.48, translating to an annualized yield of 9.4%, with a high payout ratio of 93.66%.

Floyd Financial Group LLC purchased a new stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 40,822 shares of the investment management company's stock, valued at approximately $915,000. Ares Capital accounts for approximately 0.8% of Floyd Financial Group LLC's holdings, making the stock its 27th largest holding.

Several other hedge funds and other institutional investors also recently made changes to their positions in the company. Community Trust & Investment Co. grew its position in Ares Capital by 0.3% in the second quarter. Community Trust & Investment Co. now owns 150,072 shares of the investment management company's stock valued at $3,296,000 after acquiring an additional 454 shares during the last quarter. Prostatis Group LLC boosted its stake in Ares Capital by 2.1% during the 1st quarter. Prostatis Group LLC now owns 21,768 shares of the investment management company's stock valued at $482,000 after purchasing an additional 457 shares during the last quarter. BankPlus Wealth Management LLC increased its position in shares of Ares Capital by 2.5% during the first quarter. BankPlus Wealth Management LLC now owns 19,809 shares of the investment management company's stock valued at $439,000 after acquiring an additional 492 shares during the last quarter. Fiduciary Alliance LLC grew its position in shares of Ares Capital by 3.1% during the 2nd quarter. Fiduciary Alliance LLC now owns 17,236 shares of the investment management company's stock valued at $379,000 after acquiring an additional 516 shares during the period. Finally, Ancora Advisors LLC increased its holdings in Ares Capital by 1.2% in the 1st quarter. Ancora Advisors LLC now owns 47,935 shares of the investment management company's stock worth $1,062,000 after acquiring an additional 560 shares during the last quarter. 27.38% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of analysts recently weighed in on ARCC shares. UBS Group upped their target price on shares of Ares Capital from $22.00 to $22.50 and gave the stock a "neutral" rating in a report on Wednesday, July 16th. Wells Fargo & Company lifted their target price on shares of Ares Capital from $22.00 to $23.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th. Wall Street Zen upgraded Ares Capital from a "sell" rating to a "hold" rating in a research report on Saturday, August 16th. Keefe, Bruyette & Woods upped their price target on shares of Ares Capital from $22.00 to $23.00 and gave the company an "outperform" rating in a research report on Wednesday, July 30th. Finally, Citigroup restated an "outperform" rating on shares of Ares Capital in a report on Thursday, July 31st. Seven investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $22.86.

Ares Capital Price Performance

Shares of NASDAQ ARCC opened at $20.43 on Thursday. The company has a 50 day moving average of $22.29 and a 200 day moving average of $21.78. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 1.01. The firm has a market cap of $14.41 billion, a P/E ratio of 9.97 and a beta of 0.70. Ares Capital Corporation has a twelve month low of $18.26 and a twelve month high of $23.84.

Ares Capital (NASDAQ:ARCC - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The investment management company reported $0.50 earnings per share 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 company had revenue of $614.00 million for the quarter, compared to analysts' expectations of $748.76 million. During the same period in the previous year, the firm earned $0.61 earnings per share. As a group, research analysts expect that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Dividend Announcement

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. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.4%. The ex-dividend date is Monday, September 15th. Ares Capital's dividend payout ratio (DPR) is 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.

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