Kingsview Wealth Management LLC Takes $1.59 Million Position in Ares Capital Corporation $ARCC

Key Points

• Kingsview Wealth Management acquired 85,637 shares of Ares Capital worth approximately $1.59 million during the second quarter. Institutional investors now own 27.38% of ARCC, with several major funds also initiating sizable positions.
• Analysts maintain a generally positive view, with eight Buy ratings and three Holds producing a consensus “Moderate Buy” rating and an average price target of $20.40, despite several recent target-price reductions.
• Ares Capital reported quarterly EPS of $0.47, matching estimates, and declared a $0.48 quarterly dividend. The annualized payout of $1.92 implies a 9.6% yield based on the article’s share price.

Kingsview Wealth Management LLC acquired a new stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund acquired 85,637 shares of the investment management company's stock, valued at approximately $1,587,000.

A number of other large investors have also recently bought and sold shares of ARCC. Strs Ohio bought a new position in Ares Capital during the first quarter valued at about $189,210,000. Bank of America Corp DE bought a new stake in shares of Ares Capital during the 2nd quarter worth about $165,569,000. Legal & General Group Plc bought a new stake in shares of Ares Capital during the 2nd quarter worth about $120,538,000. Advisors Capital Management LLC acquired a new position in shares of Ares Capital during the 2nd quarter valued at about $63,140,000. Finally, OMERS ADMINISTRATION Corp bought a new position in shares of Ares Capital in the 2nd quarter valued at approximately $53,867,000. 27.38% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have commented on ARCC. Truist Financial lowered their price target on Ares Capital from $22.00 to $21.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Wells Fargo & Company restated an "equal weight" rating and issued a $19.00 price objective (down from $20.00) on shares of Ares Capital in a research note on Friday, June 12th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Ares Capital in a report on Tuesday, June 9th. Keefe, Bruyette & Woods lowered their target price on shares of Ares Capital from $21.00 to $20.00 and set an "outperform" rating on the stock in a research note on Thursday, July 30th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Ares Capital from $19.00 to $18.50 and set an "overweight" rating on the stock in a report on Thursday, July 2nd. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $20.40.

Ares Capital Stock Performance

ARCC opened at $19.95 on Friday. The stock's 50 day simple moving average is $19.10 and its 200-day simple moving average is $18.84. 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 market cap of $14.32 billion, a PE ratio of 14.78 and a beta of 0.56. Ares Capital Corporation has a 1 year low of $17.40 and a 1 year high of $22.51.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The investment management company reported $0.47 earnings per share for the quarter, hitting analysts' consensus estimates of $0.47. The firm had revenue of $768.00 million for the quarter, compared to the consensus estimate 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 in the previous year, the company earned $0.50 earnings per share. Sell-side analysts forecast that Ares Capital Corporation will post 1.91 EPS for the current year.

Ares Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be given a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 9.6%. The ex-dividend date is Tuesday, September 15th. Ares Capital's dividend payout ratio (DPR) is presently 142.22%.

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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