Mackenzie Financial Corp Makes New $928,000 Investment in Ares Capital Corporation (NASDAQ:ARCC)

Key Points

• Mackenzie Financial Corp has acquired a new position in Ares Capital Corporation, purchasing 41,899 shares valued at approximately $928,000.
• Ares Capital Corporation's quarterly earnings report showed an EPS of $0.50, missing estimates by $0.01, with revenue falling short at $614 million compared to expectations of $748.76 million.
• The company has declared a quarterly dividend of $0.48, resulting in an annualized payout of $1.92 and a dividend yield of 8.5%.

Mackenzie Financial Corp purchased a new position in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 41,899 shares of the investment management company's stock, valued at approximately $928,000.

Several other large investors also recently made changes to their positions in ARCC. Sheaff Brock Investment Advisors LLC boosted its position in shares of Ares Capital by 1.1% during the first quarter. Sheaff Brock Investment Advisors LLC now owns 56,776 shares of the investment management company's stock worth $1,258,000 after buying an additional 594 shares during the period. Melia Wealth LLC boosted its position in Ares Capital by 0.7% during the 1st quarter. Melia Wealth LLC now owns 752,630 shares of the investment management company's stock worth $16,678,000 after acquiring an additional 5,586 shares during the period. LPL Financial LLC grew its stake in shares of Ares Capital by 9.0% in the first quarter. LPL Financial LLC now owns 3,567,816 shares of the investment management company's stock worth $79,063,000 after purchasing an additional 293,442 shares in the last quarter. Texas Yale Capital Corp. raised its stake in shares of Ares Capital by 2.0% during the first quarter. Texas Yale Capital Corp. now owns 73,340 shares of the investment management company's stock valued at $1,625,000 after purchasing an additional 1,450 shares in the last quarter. Finally, Investment Management Corp VA ADV raised its stake in shares of Ares Capital by 193.9% during 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 in the last quarter. Institutional investors and hedge funds own 27.38% of the company's stock.

Wall Street Analysts Forecast Growth

ARCC has been the topic of a number of recent analyst reports. Royal Bank Of Canada dropped their price target on shares of Ares Capital from $24.00 to $23.00 and set an "outperform" rating on the stock in a research report on Tuesday, May 6th. JMP Securities set a $23.00 price target on shares of Ares Capital and gave the stock a "market outperform" rating in a research report on Thursday, July 31st. Citigroup reiterated an "outperform" rating on shares of Ares Capital in a research report on Thursday, July 31st. Keefe, Bruyette & Woods boosted their target price on Ares Capital from $22.00 to $23.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 30th. Finally, Wells Fargo & Company increased their price target on Ares Capital from $22.00 to $23.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th. One analyst has rated the stock with a sell rating, two have given a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $22.86.

Ares Capital Stock Down 0.3%

Shares of ARCC traded down $0.06 during trading hours on Thursday, reaching $22.39. The company's stock had a trading volume of 3,406,833 shares, compared to its average volume of 4,579,199. The company has a 50 day moving average of $22.29 and a two-hundred day moving average of $22.04. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 1.01. The firm has a market cap of $15.79 billion, a price-to-earnings ratio of 10.92 and a beta of 0.70. Ares Capital Corporation has a 1-year low of $18.26 and a 1-year high of $23.84.

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

Ares Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be issued a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 8.6%. The ex-dividend date of this dividend is Monday, September 15th. Ares Capital's dividend payout ratio (DPR) is presently 93.66%.

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.