Foresight Capital Management Advisors Inc. Purchases 50,624 Shares of Ares Capital Corporation $ARCC

Key Points

• Foresight Capital Management Advisors increased its Ares Capital stake by 17.2%, purchasing 50,624 shares to bring its holdings to 345,778 shares valued at $6.4 million. Ares Capital now represents 3.1% of the firm’s portfolio.
• Analysts maintain a generally positive view, with eight Buy ratings and three Holds producing a “Moderate Buy” consensus and an average price target of $20.40.
• Ares Capital reported quarterly EPS of $0.47, matching estimates, and declared a $0.48 quarterly dividend. The annualized $1.92 payout represents a 9.6% yield, though its payout ratio is elevated at 142.22%.

Foresight Capital Management Advisors Inc. increased its position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 17.2% during the second quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 345,778 shares of the investment management company's stock after purchasing an additional 50,624 shares during the quarter. Ares Capital makes up 3.1% of Foresight Capital Management Advisors Inc.'s holdings, making the stock its 5th largest position. Foresight Capital Management Advisors Inc.'s holdings in Ares Capital were worth $6,407,000 at the end of the most recent reporting period.

Other hedge funds have also bought and sold shares of the company. Palladiem LLC acquired a new stake in shares of Ares Capital in the fourth quarter valued at approximately $26,000. SWAN Capital LLC acquired a new position in shares of Ares Capital during the 3rd quarter worth approximately $27,000. Sankala Group LLC bought a new stake in Ares Capital in the 4th quarter valued at $28,000. Core Wealth Advisors LLC bought a new stake in Ares Capital in the 4th quarter valued at $33,000. Finally, Quarry LP acquired a new stake in Ares Capital during the 3rd quarter valued at $33,000. 27.38% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

ARCC has been the subject of a number of research analyst reports. JPMorgan Chase & Co. reduced their price objective on shares of Ares Capital from $19.00 to $18.50 and set an "overweight" rating for the company in a research report on Thursday, July 2nd. Weiss Ratings restated a "hold (c)" rating on shares of Ares Capital in a research note on Tuesday, June 9th. Oppenheimer reduced their target price on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a report on Wednesday, April 29th. Truist Financial decreased their price target on shares of Ares Capital from $22.00 to $21.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Finally, Keefe, Bruyette & Woods lowered their price target on shares of Ares Capital from $21.00 to $20.00 and set an "outperform" rating on the stock in a report on Thursday, July 30th. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $20.40.

Ares Capital Stock Up 2.0%

ARCC stock opened at $20.01 on Friday. Ares Capital Corporation has a fifty-two week low of $17.40 and a fifty-two week high of $22.76. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.28 and a quick ratio of 1.28. The stock has a market capitalization of $14.37 billion, a price-to-earnings ratio of 14.82 and a beta of 0.56. The business's fifty day moving average price is $18.75 and its two-hundred day moving average price is $18.86.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its earnings results on Wednesday, July 29th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.47. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. The company had revenue of $768.00 million during the quarter, compared to analysts' expectations of $770.19 million. During the same quarter in the previous year, the business posted $0.50 earnings per share. On average, equities analysts anticipate that Ares Capital Corporation will post 1.91 earnings per share for the current year.

Ares Capital Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be issued a $0.48 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.92 dividend on an annualized basis and a yield of 9.6%. Ares Capital's payout ratio is currently 142.22%.

Ares Capital Profile

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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