Invesco Ltd. Cuts Holdings in Ares Capital Corporation $ARCC

Key Points

• Invesco Ltd. reduced its holdings in Ares Capital Corporation by 5.2% in Q1, leaving it with approximately 0.06% of the company's shares valued at about $8.5 million.
• Several investors increased their positions in Ares Capital, with Continuum Advisory LLC raising its stake by 320.7%, and Investment Management Corp VA ADV increasing by 193.9%.
• Ares Capital has declared a quarterly dividend of $0.48 per share, representing an annual yield of 8.7%, with the payout scheduled for September 30th.

Invesco Ltd. reduced its position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 5.2% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 383,805 shares of the investment management company's stock after selling 20,975 shares during the quarter. Invesco Ltd. owned about 0.06% of Ares Capital worth $8,505,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors have also made changes to their positions in the company. Continuum Advisory LLC raised its position in shares of Ares Capital by 320.7% in the 1st quarter. Continuum Advisory LLC now owns 1,628 shares of the investment management company's stock worth $36,000 after buying an additional 1,241 shares during the period. Investment Management Corp VA ADV raised its position in Ares Capital by 193.9% in the first quarter. Investment Management Corp VA ADV now owns 1,828 shares of the investment management company's stock valued at $41,000 after purchasing an additional 1,206 shares during the period. PSI Advisors LLC raised its position in Ares Capital by 121.1% in the first quarter. PSI Advisors LLC now owns 2,100 shares of the investment management company's stock valued at $47,000 after purchasing an additional 1,150 shares during the period. Archer Investment Corp raised its position in Ares Capital by 281.3% in the first quarter. Archer Investment Corp now owns 2,440 shares of the investment management company's stock valued at $54,000 after purchasing an additional 1,800 shares during the period. Finally, Rosenberg Matthew Hamilton raised its position in Ares Capital by 137.6% in the first quarter. Rosenberg Matthew Hamilton now owns 2,704 shares of the investment management company's stock valued at $60,000 after purchasing an additional 1,566 shares during the period. 27.38% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research firms have commented on ARCC. Wall Street Zen raised Ares Capital from a "sell" rating to a "hold" rating in a research report on Saturday, August 16th. UBS Group raised their price objective on Ares Capital from $22.00 to $22.50 and gave the company a "neutral" rating in a research report on Wednesday, July 16th. JMP Securities set a $23.00 price objective on Ares Capital and gave the company a "market outperform" rating in a research report on Thursday, July 31st. Wells Fargo & Company raised their price objective on Ares Capital from $22.00 to $23.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th. Finally, B. Riley raised Ares Capital from a "neutral" rating to a "buy" rating and raised their price objective for the company from $22.50 to $23.50 in a research report on Wednesday, July 30th. Seven investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $22.86.

Ares Capital Stock Down 1.1%

Shares of NASDAQ ARCC opened at $22.08 on Tuesday. Ares Capital Corporation has a 1 year low of $18.26 and a 1 year high of $23.84. The firm has a market cap of $15.57 billion, a price-to-earnings ratio of 10.77 and a beta of 0.70. The company has a debt-to-equity ratio of 1.01, a quick ratio of 1.14 and a current ratio of 1.14. The stock's 50-day simple moving average is $22.39 and its 200-day simple moving average is $21.94.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its earnings results on Tuesday, July 29th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.51 by ($0.01). Ares Capital had a return on equity of 10.48% and a net margin of 44.94%.The business had revenue of $614.00 million for the quarter, compared to analysts' expectations of $748.76 million. During the same period in the previous year, the firm posted $0.61 earnings per share. As a group, equities analysts anticipate that Ares Capital Corporation will post 2.19 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be paid a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 8.7%. The ex-dividend date is Monday, September 15th. Ares Capital's dividend payout ratio (DPR) is 93.66%.

Ares Capital Profile

Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.

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