Rivernorth Capital Management LLC Purchases Shares of 319,326 Ares Capital Corporation $ARCC

Key Points

• Rivernorth Capital Management purchased 319,326 shares of Ares Capital worth approximately $5.75 million during the first quarter. Institutional investors and hedge funds collectively own 27.38% of ARCC.
• Ares Capital shares opened at $19.04, near their 50-day average of $18.67. The company’s latest quarterly results missed estimates, with EPS of $0.47 versus $0.48 expected and revenue of $763 million versus $778 million projected.
• Analysts maintain a generally positive view, with eight Buy ratings and three Holds. The stock has a “Moderate Buy” consensus rating and an average price target of $20.60.

Rivernorth Capital Management LLC bought a new stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 319,326 shares of the investment management company's stock, valued at approximately $5,754,000.

A number of other institutional investors have also recently bought and sold shares of the business. Strs Ohio acquired a new stake in shares of Ares Capital during the 1st quarter valued at about $189,210,000. UBS Group AG increased its position in Ares Capital by 41.8% in the 4th quarter. UBS Group AG now owns 11,201,905 shares of the investment management company's stock valued at $226,615,000 after acquiring an additional 3,301,890 shares in the last quarter. Marshall Wace LLP acquired a new stake in shares of Ares Capital in the third quarter valued at approximately $36,943,000. Altshuler Shaham Ltd bought a new stake in shares of Ares Capital during the fourth quarter worth $33,380,000. Finally, Michael & Susan Dell Foundation bought a new stake in Ares Capital during the 4th quarter worth about $26,089,000. Institutional investors and hedge funds own 27.38% of the company's stock.

Ares Capital Stock Up 0.8%

Shares of Ares Capital stock opened at $19.04 on Wednesday. The firm has a market cap of $13.67 billion, a PE ratio of 11.68 and a beta of 0.56. The business's 50 day simple moving average is $18.67 and its 200 day simple moving average is $18.93. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.40 and a current ratio of 1.40. Ares Capital Corporation has a 52-week low of $17.40 and a 52-week high of $22.93.

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

Wall Street Analyst Weigh In

Several analysts have commented on the stock. Oppenheimer dropped their target price on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a research report on Wednesday, April 29th. JPMorgan Chase & Co. decreased their target price on Ares Capital from $19.00 to $18.50 and set an "overweight" rating for the company in a research note on Thursday, July 2nd. Citizens Jmp dropped their target price on shares of Ares Capital from $23.00 to $22.00 and set a "market outperform" rating on the stock in a report on Wednesday, April 22nd. Wells Fargo & Company reaffirmed an "equal weight" rating and issued a $19.00 price target (down from $20.00) on shares of Ares Capital in a research note on Friday, June 12th. Finally, 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 report on Wednesday, April 29th. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $20.60.

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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