Hsbc Holdings PLC Takes $1.23 Million Position in Ares Capital Corporation $ARCC

Key Points

• HSBC Holdings acquired 66,100 shares of Ares Capital worth approximately $1.23 million in the second quarter, while institutional investors and hedge funds collectively own 27.38% of the company.
• Ares Capital reported quarterly earnings of $0.47 per share, matching analyst expectations, and generated $768 million in revenue. Analysts expect full-year EPS of $1.91.
• The company declared a quarterly dividend of $0.48 per share, equivalent to $1.92 annually and a 9.6% yield. Analyst sentiment remains “Moderate Buy,” with a consensus price target of $20.40.

Hsbc Holdings PLC acquired a new position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 66,100 shares of the investment management company's stock, valued at approximately $1,225,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Roman Butler Fullerton & Co. increased its holdings in Ares Capital by 1.9% in the 1st quarter. Roman Butler Fullerton & Co. now owns 27,713 shares of the investment management company's stock worth $504,000 after buying an additional 528 shares during the period. First Citizens Bank & Trust Co. lifted its stake in Ares Capital by 5.3% during the 4th quarter. First Citizens Bank & Trust Co. now owns 10,530 shares of the investment management company's stock valued at $213,000 after acquiring an additional 532 shares during the period. CWS Financial Advisors LLC lifted its stake in Ares Capital by 4.0% during the 1st quarter. CWS Financial Advisors LLC now owns 14,956 shares of the investment management company's stock valued at $270,000 after acquiring an additional 582 shares during the period. Astoria Portfolio Advisors LLC. boosted its holdings in shares of Ares Capital by 5.9% in the 4th quarter. Astoria Portfolio Advisors LLC. now owns 10,616 shares of the investment management company's stock valued at $202,000 after acquiring an additional 592 shares during the last quarter. Finally, Founders Financial Alliance LLC boosted its holdings in shares of Ares Capital by 1.8% in the 4th quarter. Founders Financial Alliance LLC now owns 34,362 shares of the investment management company's stock valued at $695,000 after acquiring an additional 620 shares during the last quarter. Institutional investors and hedge funds own 27.38% of the company's stock.

Ares Capital Price Performance

NASDAQ:ARCC opened at $20.07 on Tuesday. Ares Capital Corporation has a 52 week low of $17.40 and a 52 week high of $22.51. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.14. The stock has a market capitalization of $14.41 billion, a PE ratio of 14.87 and a beta of 0.56. The stock's 50-day moving average price is $19.14 and its 200-day moving average price is $18.84.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The investment management company reported $0.47 earnings per share for the quarter, meeting the consensus estimate of $0.47. The firm had revenue of $768.00 million during the quarter, compared to analyst estimates of $770.19 million. Ares Capital had a return on equity of 9.80% and a net margin of 30.91%.During the same quarter in the previous year, the business earned $0.50 EPS. As a group, equities analysts expect that Ares Capital Corporation will post 1.91 EPS for the current fiscal 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. This represents a $1.92 annualized dividend and a yield of 9.6%. The ex-dividend date of this dividend is Tuesday, September 15th. Ares Capital's dividend payout ratio (DPR) is presently 142.22%.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on ARCC shares. Keefe, Bruyette & Woods reduced their target price on shares of Ares Capital from $21.00 to $20.00 and set an "outperform" rating for the company in a report on Thursday, July 30th. Wall Street Zen lowered shares of Ares Capital from a "hold" rating to a "sell" rating in a report on Sunday, August 2nd. Wells Fargo & Company reaffirmed an "equal weight" rating and issued a $19.00 price target (down from $20.00) on shares of Ares Capital in a report on Friday, June 12th. Weiss Ratings reiterated a "hold (c)" rating on shares of Ares Capital in a research note on Tuesday, June 9th. Finally, Truist Financial reduced their price objective on Ares Capital from $22.00 to $21.00 and set a "buy" rating for the company in a research note on Thursday, July 30th. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $20.40.

About Ares Capital

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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