Foundations Investment Advisors LLC Increases Stock Position in Ares Capital Corporation $ARCC

Key Points

• Foundations Investment Advisors LLC increased its Ares Capital stake by 21.1% in the fourth quarter, buying 60,455 more shares and bringing its total to 347,257 shares worth about $7.0 million.
• Several other institutional investors also added to ARCC, and hedge funds and other institutions now own 27.38% of the company’s stock.
• Ares Capital recently reported quarterly EPS of $0.47, slightly below expectations, and announced a $0.48 quarterly dividend that annualizes to a 10.2% yield.

Foundations Investment Advisors LLC boosted its stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 21.1% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 347,257 shares of the investment management company's stock after buying an additional 60,455 shares during the quarter. Foundations Investment Advisors LLC's holdings in Ares Capital were worth $7,025,000 as of its most recent SEC filing.

Several other hedge funds also recently bought and sold shares of the stock. UBS Group AG boosted its stake in Ares Capital by 41.8% during the fourth quarter. UBS Group AG now owns 11,201,905 shares of the investment management company's stock worth $226,615,000 after buying an additional 3,301,890 shares during the period. Bank of America Corp DE boosted its stake in Ares Capital by 8.9% during the second quarter. Bank of America Corp DE now owns 8,678,129 shares of the investment management company's stock worth $190,572,000 after buying an additional 705,882 shares during the period. Legal & General Group Plc boosted its stake in Ares Capital by 16.4% during the fourth quarter. Legal & General Group Plc now owns 5,408,067 shares of the investment management company's stock worth $109,432,000 after buying an additional 761,838 shares during the period. Ameriprise Financial Inc. lifted its position in shares of Ares Capital by 6.3% during the second quarter. Ameriprise Financial Inc. now owns 3,794,378 shares of the investment management company's stock worth $83,353,000 after purchasing an additional 225,984 shares in the last quarter. Finally, Advisors Capital Management LLC lifted its position in shares of Ares Capital by 13.5% during the fourth quarter. Advisors Capital Management LLC now owns 3,566,790 shares of the investment management company's stock worth $72,156,000 after purchasing an additional 423,795 shares in the last quarter. Hedge funds and other institutional investors own 27.38% of the company's stock.

Analyst Ratings Changes

ARCC has been the topic of several research reports. JPMorgan Chase & Co. reduced their price target on shares of Ares Capital from $22.00 to $19.00 and set an "overweight" rating on the stock in a research report on Friday, March 13th. UBS Group reduced their price target on shares of Ares Capital from $21.00 to $19.00 and set a "neutral" rating on the stock in a research report on Friday, March 13th. Oppenheimer reduced their price target on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 29th. B. Riley Financial reduced their price target on shares of Ares Capital from $22.00 to $20.00 and set a "buy" rating on the stock in a research report on Wednesday, April 29th. Finally, Royal Bank Of Canada reduced their price target on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 29th. Nine research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, Ares Capital presently has a consensus rating of "Moderate Buy" and an average target price of $20.75.

Ares Capital Stock Down 0.3%

Shares of ARCC opened at $18.81 on Friday. The company's 50-day simple moving average is $18.54 and its 200-day simple moving average is $19.44. The stock has a market capitalization of $13.51 billion, a PE ratio of 11.54 and a beta of 0.58. Ares Capital Corporation has a 1 year low of $17.40 and a 1 year high of $23.42. 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 (NASDAQ:ARCC - Get Free Report) last issued its earnings results on Tuesday, April 28th. The investment management company reported $0.47 earnings per share for the quarter, missing the consensus estimate of $0.48 by ($0.01). The firm had revenue of $763.00 million during the quarter, compared to analyst estimates of $778.00 million. Ares Capital had a net margin of 37.30% and a return on equity of 9.85%. The firm's revenue was up 4.2% compared to the same quarter last year. During the same period last year, the business earned $0.50 EPS. Analysts forecast that Ares Capital Corporation will post 1.91 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be issued a $0.48 dividend. The ex-dividend date of this dividend is Monday, June 15th. This represents a $1.92 annualized dividend and a yield of 10.2%. Ares Capital's dividend payout ratio (DPR) is 117.79%.

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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