OMERS ADMINISTRATION Corp Grows Position in Ares Capital Corporation $ARCC

Key Points

• OMERS ADMINISTRATION Corp boosted its Ares Capital stake by 20.1% in the first quarter, buying 474,414 additional shares and bringing its total holdings to 2,834,469 shares valued at about $51.1 million.
• Several analysts have trimmed price targets on ARCC, but the stock still carries a Moderate Buy consensus with an average target price of $20.60. Eight analysts rate it a Buy and three a Hold.
• Ares Capital reported Q1 earnings and revenue below estimates, while also paying a $0.48 quarterly dividend that annualizes to a 10.2% yield; however, its dividend payout ratio is elevated at 117.79%.

OMERS ADMINISTRATION Corp increased its holdings in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 20.1% during the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 2,834,469 shares of the investment management company's stock after purchasing an additional 474,414 shares during the period. OMERS ADMINISTRATION Corp owned 0.39% of Ares Capital worth $51,077,000 as of its most recent SEC filing.

A number of other large investors have also added to or reduced their stakes in the company. Palladiem LLC purchased a new position in Ares Capital during the 4th quarter worth $26,000. SWAN Capital LLC purchased a new stake in Ares Capital in the third quarter valued at about $27,000. Sankala Group LLC purchased a new stake in Ares Capital in the fourth quarter valued at about $28,000. Core Wealth Advisors LLC acquired a new stake in Ares Capital in the fourth quarter worth about $33,000. Finally, Quarry LP acquired a new stake in Ares Capital in the third quarter worth about $33,000. 27.38% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of research analysts have issued reports on ARCC shares. Keefe, Bruyette & Woods cut their price target on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating on the stock in a research note on Thursday, April 16th. Royal Bank Of Canada lowered their price objective on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a research note on Wednesday, April 29th. Wells Fargo & Company reissued an "equal weight" rating and set a $19.00 price objective (down from $20.00) on shares of Ares Capital in a report on Friday, June 12th. Citizens Jmp cut their target price on Ares Capital from $23.00 to $22.00 and set a "market outperform" rating on the stock in a research report on Wednesday, April 22nd. Finally, Truist Financial reduced their target price on Ares Capital from $23.00 to $22.00 and set a "buy" rating for the company in a research note on Wednesday, April 29th. Eight analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $20.60.

Ares Capital Stock Performance

Shares of NASDAQ ARCC opened at $18.78 on Friday. The company has a market capitalization of $13.48 billion, a PE ratio of 11.52 and a beta of 0.56. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.40 and a current ratio of 1.40. The company's fifty day moving average price is $18.66 and its 200 day moving average price is $18.97. Ares Capital Corporation has a 1 year low of $17.40 and a 1 year high of $23.15.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its earnings results on Tuesday, April 28th. The investment management company reported $0.47 earnings per share for the quarter, missing the consensus estimate of $0.48 by ($0.01). The business had revenue of $763.00 million for the quarter, compared to analyst estimates of $778.00 million. Ares Capital had a return on equity of 9.85% and a net margin of 37.30%.The company's quarterly revenue was up 4.2% compared to the same quarter last year. During the same period in the previous year, the company earned $0.50 earnings per share. On average, research analysts predict that Ares Capital Corporation will post 1.9 earnings per share for the current year.

Ares Capital Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were issued a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 10.2%. The ex-dividend date of this dividend was Monday, June 15th. Ares Capital's dividend payout ratio (DPR) is currently 117.79%.

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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