HB Wealth Management LLC Sells 50,873 Shares of Ares Capital Corporation $ARCC

Key Points

• HB Wealth Management reduced its Ares Capital position by 33.4%, selling 50,873 shares during the second quarter and retaining 101,316 shares valued at approximately $1.88 million.
• Several major institutions—including Strs Ohio, Bank of America, Legal & General, Advisors Capital Management, and OMERS—opened new positions; institutional investors now own 27.38% of ARCC.
• Ares Capital reported quarterly EPS of $0.47, matching estimates, and declared a quarterly dividend of $0.48, representing a 9.8% annualized yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $20.60.

HB Wealth Management LLC lowered its position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 33.4% during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 101,316 shares of the investment management company's stock after selling 50,873 shares during the quarter. HB Wealth Management LLC's holdings in Ares Capital were worth $1,877,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Strs Ohio purchased a new stake in Ares Capital in the 1st quarter worth about $189,210,000. Bank of America Corp DE purchased a new position in shares of Ares Capital during the second quarter valued at approximately $165,569,000. Legal & General Group Plc purchased a new position in shares of Ares Capital during the second quarter valued at approximately $120,538,000. Advisors Capital Management LLC purchased a new position in shares of Ares Capital during the second quarter valued at approximately $63,140,000. Finally, OMERS ADMINISTRATION Corp bought a new position in shares of Ares Capital during the second quarter valued at approximately $53,867,000. Institutional investors own 27.38% of the company's stock.

Ares Capital Price Performance

Shares of ARCC stock opened at $19.66 on Thursday. Ares Capital Corporation has a twelve month low of $17.40 and a twelve month high of $22.50. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 1.14. The stock has a fifty day simple moving average of $19.38 and a two-hundred day simple moving average of $18.86. The stock has a market capitalization of $14.12 billion, a price-to-earnings ratio of 14.56 and a beta of 0.57.

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

Ares Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be issued a $0.48 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $1.92 annualized dividend and a dividend yield of 9.8%. Ares Capital's payout ratio is currently 142.22%.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the company. Wall Street Zen lowered Ares Capital from a "hold" rating to a "sell" rating in a research note on Sunday, August 2nd. UBS Group boosted their target price on shares of Ares Capital from $19.00 to $21.00 and gave the company a "neutral" rating in a research note on Tuesday, September 1st. Truist Financial cut their price target on shares of Ares Capital from $22.00 to $21.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. JPMorgan Chase & Co. reduced their price target on shares of Ares Capital from $19.00 to $18.50 and set an "overweight" rating on the stock in a research note on Thursday, July 2nd. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Ares Capital in a report on Friday, September 4th. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $20.60.

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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