Rathbones Group PLC Decreases Stock Holdings in Ares Capital Corporation $ARCC

Key Points

• Rathbones Group sharply reduced its Ares Capital stake by 96.7% in the first quarter, selling 366,753 shares and retaining 12,571 shares valued at approximately $227,000.
• Ares Capital reported quarterly earnings of $0.47 per share, matching analyst estimates, while revenue of $768 million fell slightly short of forecasts. The company expects full-year earnings of $1.91 per share.
• Ares Capital declared a quarterly dividend of $0.48 per share, equivalent to $1.92 annually and a 9.8% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $20.40, despite several recent target-price cuts.

Rathbones Group PLC reduced its stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 96.7% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 12,571 shares of the investment management company's stock after selling 366,753 shares during the quarter. Rathbones Group PLC's holdings in Ares Capital were worth $227,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds also recently added to or reduced their stakes in the company. AQR Capital Management LLC grew its holdings in shares of Ares Capital by 6.5% in the 1st quarter. AQR Capital Management LLC now owns 16,502 shares of the investment management company's stock worth $365,000 after acquiring an additional 1,000 shares during the period. Dynamic Technology Lab Private Ltd acquired a new position in Ares Capital during the first quarter worth $273,000. Goldman Sachs Group Inc. raised its holdings in Ares Capital by 14.5% during the first quarter. Goldman Sachs Group Inc. now owns 2,835,007 shares of the investment management company's stock worth $62,824,000 after purchasing an additional 358,829 shares during the last quarter. Empowered Funds LLC boosted its position in Ares Capital by 139.9% during the first quarter. Empowered Funds LLC now owns 27,655 shares of the investment management company's stock worth $613,000 after purchasing an additional 16,128 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC purchased a new stake in Ares Capital during the first quarter worth $14,766,000. 27.38% of the stock is owned by hedge funds and other institutional investors.

Ares Capital Price Performance

Ares Capital stock opened at $19.62 on Friday. Ares Capital Corporation has a 12-month low of $17.40 and a 12-month high of $22.76. The stock has a market capitalization of $14.09 billion, a P/E ratio of 14.53 and a beta of 0.56. The firm's 50-day moving average is $18.73 and its two-hundred day moving average is $18.86. 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 (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 business had revenue of $768.00 million during the quarter, compared to analyst estimates 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 previous year, the business posted $0.50 earnings per share. Equities analysts predict that Ares Capital Corporation will post 1.91 earnings per share for the current year.

Ares Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be paid a $0.48 dividend. This represents a $1.92 annualized dividend and a yield of 9.8%. The ex-dividend date of this dividend is Tuesday, September 15th. Ares Capital's payout ratio is presently 142.22%.

Analysts Set New Price Targets

ARCC has been the topic of several research reports. Oppenheimer lowered their target price on Ares Capital from $22.00 to $21.00 and set an "outperform" rating on the stock in a report on Wednesday, April 29th. Wall Street Zen lowered shares of Ares Capital from a "hold" rating to a "sell" rating in a research report on Sunday, August 2nd. B. Riley Financial lowered their price objective on shares of Ares Capital from $22.00 to $20.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Keefe, Bruyette & Woods dropped their target price on shares of Ares Capital from $21.00 to $20.00 and set an "outperform" rating for the company in a report on Thursday, July 30th. Finally, Wells Fargo & Company restated an "equal weight" rating and set a $19.00 target price (down from $20.00) on shares of Ares Capital in a report on Friday, June 12th. Eight analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $20.40.

Ares Capital 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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