Kingstone Capital Partners Texas LLC Takes Position in Ares Capital Corporation $ARCC

Key Points

• Kingstone Capital Partners Texas LLC acquired a new stake in Ares Capital Corporation (ARCC) worth approximately $877.20 million, representing a 6.31% ownership in the company as of the end of the most recent quarter.
• Analysts have set a target price of $23.00 for Ares Capital, with seven ratings as "Buy" and two as "Hold," reflecting a moderate positive outlook.
• Ares Capital recently announced a quarterly dividend of $0.48, yielding 9.0% on an annual basis, and has a payout ratio of 93.66%.

Kingstone Capital Partners Texas LLC purchased a new stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 43,817,148 shares of the investment management company's stock, valued at approximately $877,203,000. Kingstone Capital Partners Texas LLC owned approximately 6.31% of Ares Capital as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Confluence Investment Management LLC boosted its holdings in Ares Capital by 0.6% in the second quarter. Confluence Investment Management LLC now owns 3,796,791 shares of the investment management company's stock valued at $83,378,000 after purchasing an additional 21,344 shares in the last quarter. Rollins Financial Advisors LLC boosted its holdings in shares of Ares Capital by 10.2% in the first quarter. Rollins Financial Advisors LLC now owns 138,139 shares of the investment management company's stock valued at $3,061,000 after acquiring an additional 12,838 shares during the period. Allspring Global Investments Holdings LLC boosted its holdings in shares of Ares Capital by 0.7% in the first quarter. Allspring Global Investments Holdings LLC now owns 241,119 shares of the investment management company's stock valued at $5,343,000 after acquiring an additional 1,776 shares during the period. Mirae Asset Global Investments Co. Ltd. boosted its holdings in shares of Ares Capital by 18.2% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 47,840 shares of the investment management company's stock valued at $1,058,000 after acquiring an additional 7,381 shares during the period. Finally, Bessemer Group Inc. boosted its holdings in shares of Ares Capital by 23,571.4% in the first quarter. Bessemer Group Inc. now owns 3,314 shares of the investment management company's stock valued at $73,000 after acquiring an additional 3,300 shares during the period. 27.38% of the stock is owned by institutional investors and hedge funds.

Ares Capital Price Performance

Ares Capital stock traded down $0.06 during midday trading on Tuesday, reaching $20.89. 2,593,021 shares of the company were exchanged, compared to its average volume of 4,443,649. The company has a market capitalization of $14.73 billion, a price-to-earnings ratio of 10.18 and a beta of 0.70. The firm's 50-day simple moving average is $22.38 and its 200-day simple moving average is $21.79. Ares Capital Corporation has a 1 year low of $18.26 and a 1 year high of $23.84. The company has a debt-to-equity ratio of 1.01, a quick ratio of 1.14 and a current ratio of 1.14.

Ares Capital (NASDAQ:ARCC - Get Free Report) last issued its quarterly 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 during the quarter, compared to analyst estimates of $748.76 million. During the same period in the previous year, the business posted $0.61 earnings per share. On average, analysts anticipate that Ares Capital Corporation will post 2.19 EPS for the current year.

Ares Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders 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 9.2%. The ex-dividend date of this dividend is Monday, September 15th. Ares Capital's dividend payout ratio (DPR) is presently 93.66%.

Analyst Ratings Changes

ARCC has been the subject of several recent research reports. Citigroup reaffirmed an "outperform" rating on shares of Ares Capital in a report on Thursday, July 31st. B. Riley upgraded shares of Ares Capital from a "neutral" rating to a "buy" rating and upped their price objective for the stock from $22.50 to $23.50 in a research report on Wednesday, July 30th. Keefe, Bruyette & Woods upped their price objective on shares of Ares Capital from $22.00 to $23.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 30th. Wells Fargo & Company upped their price objective on shares of Ares Capital from $22.00 to $23.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 30th. Finally, UBS Group upped their price objective on shares of Ares Capital from $22.00 to $22.50 and gave the stock a "neutral" rating in a research report on Wednesday, July 16th. Seven research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, Ares Capital has an average rating of "Moderate Buy" and a consensus price target of $22.86.

About Ares Capital

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.