MGO One Seven LLC Increases Stock Position in Ares Capital Corporation (NASDAQ:ARCC)

Key Points

Error: Response status code does not indicate success: 429 (Too Many Requests).

MGO One Seven LLC raised its stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 7.1% in the first quarter, according to its most recent 13F filing with the SEC. The fund owned 392,374 shares of the investment management company's stock after purchasing an additional 26,109 shares during the period. MGO One Seven LLC owned approximately 0.06% of Ares Capital worth $8,695,000 as of its most recent SEC filing.

A number of other hedge funds have also added to or reduced their stakes in ARCC. World Investment Advisors boosted its stake in Ares Capital by 4.1% in the fourth quarter. World Investment Advisors now owns 12,521 shares of the investment management company's stock valued at $274,000 after acquiring an additional 488 shares during the last quarter. BankPlus Wealth Management LLC boosted its stake in Ares Capital by 2.5% in the first quarter. BankPlus Wealth Management LLC now owns 19,809 shares of the investment management company's stock valued at $439,000 after acquiring an additional 492 shares during the last quarter. Western Financial Corp CA boosted its stake in Ares Capital by 2.2% in the first quarter. Western Financial Corp CA now owns 26,961 shares of the investment management company's stock valued at $597,000 after acquiring an additional 574 shares during the last quarter. Taylor Frigon Capital Management LLC boosted its stake in Ares Capital by 0.6% in the first quarter. Taylor Frigon Capital Management LLC now owns 104,519 shares of the investment management company's stock valued at $2,316,000 after acquiring an additional 582 shares during the last quarter. Finally, Sheaff Brock Investment Advisors LLC boosted its stake in Ares Capital by 1.1% in the first quarter. Sheaff Brock Investment Advisors LLC now owns 56,776 shares of the investment management company's stock valued at $1,258,000 after acquiring an additional 594 shares during the last quarter. Institutional investors and hedge funds own 27.38% of the company's stock.

Ares Capital Price Performance

Shares of Ares Capital stock traded down $0.24 on Friday, reaching $22.39. The stock had a trading volume of 3,219,495 shares, compared to its average volume of 3,174,595. Ares Capital Corporation has a 1 year low of $18.26 and a 1 year high of $23.84. The company has a market cap of $15.79 billion, a P/E ratio of 10.92 and a beta of 0.70. The company has a current ratio of 1.14, a quick ratio of 1.40 and a debt-to-equity ratio of 1.01. The business's 50 day moving average is $22.25 and its two-hundred day moving average is $22.05.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced 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 firm had revenue of $614.00 million during the quarter, compared to analysts' expectations of $748.76 million. During the same period in the previous year, the company posted $0.61 earnings per share. As a group, research analysts anticipate that Ares Capital Corporation will post 2.19 EPS for the current year.

Ares Capital Announces Dividend

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. The ex-dividend date of this dividend is Monday, September 15th. This represents a $1.92 annualized dividend and a dividend yield of 8.6%. Ares Capital's payout ratio is presently 93.66%.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Citigroup reiterated an "outperform" rating on shares of Ares Capital in a research note on Thursday. Keefe, Bruyette & Woods lifted their target price on shares of Ares Capital from $22.00 to $23.00 and gave the stock an "outperform" rating in a research note on Wednesday. UBS Group lifted their target price on shares of Ares Capital from $22.00 to $22.50 and gave the stock a "neutral" rating in a research note on Wednesday, July 16th. Wells Fargo & Company lifted their target price on shares of Ares Capital from $22.00 to $23.00 and gave the stock an "overweight" rating in a research note on Wednesday. Finally, Royal Bank Of Canada reduced their target price on shares of Ares Capital from $24.00 to $23.00 and set an "outperform" rating for the company in a research note on Tuesday, May 6th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and seven have issued a buy rating to the company's stock. According to MarketBeat.com, Ares Capital currently has an average rating of "Moderate Buy" and an average 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.