OMERS ADMINISTRATION Corp Acquires New Shares in Ares Capital Corporation $ARCC

Key Points

• OMERS Administration Corp. acquired 2.91 million Ares Capital shares worth approximately $53.9 million, representing about 0.40% of the company. Other institutional investors also initiated positions, bringing institutional ownership to 27.38%.
• Analysts maintain a generally positive view of ARCC, with eight Buy ratings and three Holds producing a consensus “Moderate Buy” rating and an average price target of $20.40.
• Ares Capital reported quarterly EPS of $0.47, matching estimates, and declared a $0.48 quarterly dividend. The annualized $1.92 payout equates to a dividend yield of approximately 9.6%.

OMERS ADMINISTRATION Corp bought a new position in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 2,907,012 shares of the investment management company's stock, valued at approximately $53,867,000. OMERS ADMINISTRATION Corp owned approximately 0.40% of Ares Capital as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors also recently bought and sold shares of ARCC. Sanctuary Advisors LLC purchased a new stake in shares of Ares Capital in the 2nd quarter worth about $1,847,000. Vista Investment Management purchased a new stake in shares of Ares Capital in the second quarter valued at about $198,000. Elevation Point Wealth Partners LLC acquired a new stake in shares of Ares Capital in the second quarter valued at approximately $1,564,000. Commerce Bank acquired a new stake in shares of Ares Capital in the second quarter valued at approximately $1,145,000. Finally, Northwestern Mutual Wealth Management Co. purchased a new position in shares of Ares Capital during the 2nd quarter worth approximately $315,000. Institutional investors and hedge funds own 27.38% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on ARCC shares. B. Riley Financial cut their price objective on Ares Capital from $22.00 to $20.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. Truist Financial decreased their price objective on Ares Capital from $22.00 to $21.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Wells Fargo & Company restated an "equal weight" rating and issued a $19.00 target price (down from $20.00) on shares of Ares Capital in a report on Friday, June 12th. JPMorgan Chase & Co. lowered their price target on shares of Ares Capital from $19.00 to $18.50 and set an "overweight" rating for the company in a report on Thursday, July 2nd. Finally, Oppenheimer reduced their price objective on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating on the stock in a research note on Wednesday, April 29th. Eight research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $20.40.

Ares Capital Price Performance

Shares of NASDAQ ARCC opened at $19.92 on Monday. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.28 and a quick ratio of 1.28. Ares Capital Corporation has a 1-year low of $17.40 and a 1-year high of $22.53. The company has a market capitalization of $14.30 billion, a price-to-earnings ratio of 14.76 and a beta of 0.56. The business has a 50-day moving average of $18.93 and a 200-day moving average of $18.81.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The investment management company reported $0.47 earnings per share for the quarter, meeting analysts' consensus estimates of $0.47. The company had revenue of $768.00 million during the quarter, compared to analysts' expectations of $770.19 million. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. During the same period in the prior year, the company posted $0.50 EPS. On average, equities analysts anticipate that Ares Capital Corporation will post 1.91 EPS for the current fiscal year.

Ares Capital Announces Dividend

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

Ares Capital Company Profile

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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