Ieq Capital LLC Makes New Investment in Ares Capital Corporation $ARCC

Key Points

• Ieq Capital LLC acquired 96,304 shares of Ares Capital in the second quarter, valued at approximately $1.785 million. Institutional investors collectively own 27.38% of the company.
• Analysts maintain a generally positive outlook, with eight Buy ratings and three Holds, producing a consensus “Moderate Buy” rating and an average price target of $20.40.
• Ares Capital reported quarterly EPS of $0.47, matching expectations, and announced a quarterly dividend of $0.48, equivalent to a 9.6% annualized yield.

Ieq Capital LLC bought a new position in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) during the 2nd quarter, according to its most recent 13F filing with the SEC. The firm bought 96,304 shares of the investment management company's stock, valued at approximately $1,785,000.

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

Wall Street Analysts Forecast Growth

ARCC has been the subject of several recent analyst reports. Wells Fargo & Company reissued an "equal weight" rating and issued a $19.00 price objective (down from $20.00) on shares of Ares Capital in a report on Friday, June 12th. Royal Bank Of Canada dropped 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. JPMorgan Chase & Co. cut their price target on shares of Ares Capital from $19.00 to $18.50 and set an "overweight" rating for the company in a research note on Thursday, July 2nd. Wall Street Zen downgraded shares of Ares Capital from a "hold" rating to a "sell" rating in a research report on Sunday, August 2nd. Finally, Truist Financial lowered their price objective 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. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $20.40.

Ares Capital Price Performance

NASDAQ:ARCC opened at $19.93 on Wednesday. Ares Capital Corporation has a one year low of $17.40 and a one year high of $22.51. The company has a market cap of $14.31 billion, a P/E ratio of 14.76 and a beta of 0.56. The firm's fifty day moving average price is $18.99 and its two-hundred day moving average price is $18.82. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.28 and a quick ratio of 1.28.

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

Ares Capital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be given a $0.48 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.92 annualized dividend and a dividend yield of 9.6%. Ares Capital's dividend payout ratio is presently 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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