Nan Fung Trinity HK Ltd. Increases Stock Holdings in Ares Capital Corporation (NASDAQ:ARCC)

Key Points

• Nan Fung Trinity HK Ltd. has increased its stake in Ares Capital Corporation by 113.7%, owning a total of 647,800 shares after acquiring an additional 344,700 shares, making Ares Capital the firm's 20th largest investment.
• Analysts have mixed views on Ares Capital, with the company receiving an average rating of "Moderate Buy" and a consensus target price of $22.21, reflecting varying price targets set by different firms.
• Ares Capital's recent quarterly earnings missed estimates, reporting $0.50 earnings per share, which was below the consensus of $0.51, indicating potential challenges for the investment management company.

Nan Fung Trinity HK Ltd. lifted its stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 113.7% in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 647,800 shares of the investment management company's stock after purchasing an additional 344,700 shares during the period. Ares Capital accounts for 2.3% of Nan Fung Trinity HK Ltd.'s investment portfolio, making the stock its 20th biggest holding. Nan Fung Trinity HK Ltd. owned approximately 0.09% of Ares Capital worth $14,355,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors also recently modified their holdings of the stock. Montag & Caldwell LLC purchased a new position in shares of Ares Capital in the fourth quarter worth about $33,000. Continuum Advisory LLC boosted its holdings in 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 grew its stake in Ares Capital by 193.9% in the 1st quarter. Investment Management Corp VA ADV now owns 1,828 shares of the investment management company's stock valued at $41,000 after buying an additional 1,206 shares in the last quarter. PSI Advisors LLC raised its holdings in Ares Capital by 121.1% during the 1st quarter. PSI Advisors LLC now owns 2,100 shares of the investment management company's stock valued at $47,000 after acquiring an additional 1,150 shares during the period. Finally, Archer Investment Corp lifted its position in shares of Ares Capital by 281.3% during the first quarter. Archer Investment Corp now owns 2,440 shares of the investment management company's stock worth $54,000 after acquiring an additional 1,800 shares in the last quarter. Hedge funds and other institutional investors own 27.38% of the company's stock.

Ares Capital Price Performance

Shares of NASDAQ:ARCC traded up $0.09 during trading on Wednesday, reaching $22.63. The company had a trading volume of 3,985,531 shares, compared to its average volume of 2,986,838. The company has a fifty day moving average of $22.22 and a two-hundred day moving average of $22.05. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 1.02. The stock has a market capitalization of $15.71 billion, a P/E ratio of 11.04 and a beta of 0.67. Ares Capital Corporation has a 12 month low of $18.26 and a 12 month high of $23.84.

Ares Capital (NASDAQ:ARCC - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The investment management company reported $0.50 earnings per share for the quarter, missing analysts' consensus estimates of $0.51 by ($0.01). Ares Capital had a net margin of 44.94% and a return on equity of 10.63%. The firm had revenue of $614.00 million for the quarter, compared to analysts' expectations of $748.76 million. During the same quarter in the previous year, the business earned $0.61 EPS. Equities research analysts forecast that Ares Capital Corporation will post 2.19 earnings per share for the current year.

Ares Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be given a $0.48 dividend. The ex-dividend date of this dividend is Monday, September 15th. This represents a $1.92 dividend on an annualized basis and a yield of 8.48%. Ares Capital's payout ratio is 93.66%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the company. UBS Group lifted their price target on Ares Capital from $22.00 to $22.50 and gave the company a "neutral" rating in a research report on Wednesday, July 16th. Royal Bank Of Canada reduced their target price on Ares Capital from $24.00 to $23.00 and set an "outperform" rating for the company in a report on Tuesday, May 6th. B. Riley raised shares of Ares Capital from a "neutral" rating to a "buy" rating and increased their price target for the stock from $22.50 to $23.50 in a report on Wednesday. JPMorgan Chase & Co. reduced their price objective on shares of Ares Capital from $24.50 to $22.00 and set an "overweight" rating for the company in a research note on Thursday, April 24th. Finally, Wells Fargo & Company upped their target price on shares of Ares Capital from $22.00 to $23.00 and gave the stock an "overweight" rating in a report on Wednesday. One investment analyst has rated the stock with a sell rating, two have given a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $22.71.

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.