Plan Group Financial LLC Invests $2.72 Million in Ares Capital Corporation $ARCC

Key Points

• Plan Group Financial acquired 147,018 shares of Ares Capital in the second quarter, valued at approximately $2.72 million. Institutional investors and hedge funds collectively own 27.38% of ARCC.
• Ares Capital reported quarterly earnings of $0.47 per share, matching analyst expectations, while revenue totaled $768 million, slightly below consensus estimates.
• The company declared a quarterly dividend of $0.48 per share, or $1.92 annually, representing a 9.7% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $20.40.

Plan Group Financial LLC purchased a new position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm purchased 147,018 shares of the investment management company's stock, valued at approximately $2,724,000.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Palladiem LLC acquired a new stake in Ares Capital in the fourth quarter worth $26,000. SWAN Capital LLC acquired a new position in shares of Ares Capital during the third quarter valued at $27,000. Sankala Group LLC bought a new position in shares of Ares Capital during the fourth quarter worth about $28,000. Core Wealth Advisors LLC bought a new position in shares of Ares Capital during the fourth quarter worth about $33,000. Finally, Quarry LP bought a new position in shares of Ares Capital during the third quarter worth about $33,000. Institutional investors and hedge funds own 27.38% of the company's stock.

Ares Capital Price Performance

Shares of ARCC opened at $19.87 on Friday. The firm has a market capitalization of $14.27 billion, a price-to-earnings ratio of 14.72 and a beta of 0.56. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.28 and a current ratio of 1.28. Ares Capital Corporation has a one year low of $17.40 and a one year high of $22.76. The stock's fifty day moving average is $18.86 and its 200-day moving average is $18.83.

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, hitting the consensus estimate of $0.47. The business had revenue of $768.00 million during the quarter, compared to the consensus estimate of $770.19 million. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. During the same quarter in the prior year, the company posted $0.50 earnings per share. Equities analysts anticipate that Ares Capital Corporation will post 1.91 EPS for the current year.

Ares Capital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be given a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.7%. The ex-dividend date is Tuesday, September 15th. Ares Capital's payout ratio is 142.22%.

Analyst Ratings Changes

ARCC has been the topic of several recent research reports. Citizens Jmp cut their price objective on shares of 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. Truist Financial decreased their target price on shares of Ares Capital from $22.00 to $21.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. Weiss Ratings restated a "hold (c)" rating on shares of Ares Capital in a research note on Tuesday, June 9th. Wells Fargo & Company reaffirmed an "equal weight" rating and set a $19.00 price target (down from $20.00) on shares of Ares Capital in a report on Friday, June 12th. Finally, JPMorgan Chase & Co. reduced their price objective on Ares Capital from $19.00 to $18.50 and set an "overweight" rating for the company in a research report on Thursday, July 2nd. Eight equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $20.40.

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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