Rollins Financial Advisors LLC Increases Holdings in Ares Capital Corporation $ARCC

Key Points

• Rollins Financial Advisors LLC increased its holdings in Ares Capital Corporation by 10.2% during Q1, owning a total of 138,139 shares worth approximately $3,061,000.
• Ares Capital also announced a quarterly dividend of $0.48 per share, resulting in an annualized yield of 8.6% for shareholders.
• Analysts have shown optimism with several upgrades, resulting in a consensus rating of "Moderate Buy" and a target price of $22.86 for Ares Capital stock.

Rollins Financial Advisors LLC grew its holdings in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 10.2% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 138,139 shares of the investment management company's stock after purchasing an additional 12,838 shares during the quarter. Rollins Financial Advisors LLC's holdings in Ares Capital were worth $3,061,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. Allspring Global Investments Holdings LLC increased its position in shares of Ares Capital by 0.7% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 241,119 shares of the investment management company's stock valued at $5,343,000 after purchasing an additional 1,776 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. increased its position in shares of Ares Capital by 18.2% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 47,840 shares of the investment management company's stock valued at $1,058,000 after purchasing an additional 7,381 shares during the last quarter. Bessemer Group Inc. increased its position in shares of Ares Capital by 23,571.4% during the 1st quarter. Bessemer Group Inc. now owns 3,314 shares of the investment management company's stock valued at $73,000 after purchasing an additional 3,300 shares during the last quarter. GAMMA Investing LLC increased its position in shares of Ares Capital by 2,116.0% during the 1st quarter. GAMMA Investing LLC now owns 13,274 shares of the investment management company's stock valued at $2,940,000 after purchasing an additional 12,675 shares during the last quarter. Finally, SG Americas Securities LLC increased its position in shares of Ares Capital by 2.8% during the 1st quarter. SG Americas Securities LLC now owns 24,361 shares of the investment management company's stock valued at $540,000 after purchasing an additional 666 shares during the last quarter. 27.38% of the stock is owned by hedge funds and other institutional investors.

Ares Capital Stock Up 0.5%

Shares of NASDAQ ARCC opened at $22.35 on Thursday. Ares Capital Corporation has a 52 week low of $18.26 and a 52 week high of $23.84. The business has a 50-day simple moving average of $22.55 and a two-hundred day simple moving average of $21.89. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 1.01. The company has a market cap of $15.77 billion, a P/E ratio of 10.90 and a beta of 0.70.

Ares Capital (NASDAQ:ARCC - Get Free Report) last issued its earnings results on Tuesday, July 29th. The investment management company reported $0.50 EPS for the quarter, missing the consensus estimate of $0.51 by ($0.01). Ares Capital had a return on equity of 10.48% and a net margin of 44.94%.The company had revenue of $614.00 million during the quarter, compared to the consensus estimate of $748.76 million. During the same quarter in the prior year, the business earned $0.61 EPS. Research analysts anticipate that Ares Capital Corporation will post 2.19 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th will be paid a $0.48 dividend. The ex-dividend date is Monday, September 15th. This represents a $1.92 annualized dividend and a yield of 8.6%. Ares Capital's dividend payout ratio (DPR) is currently 93.66%.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on ARCC. Wall Street Zen raised Ares Capital from a "sell" rating to a "hold" rating in a research report on Saturday, August 16th. UBS Group increased their price target on Ares Capital from $22.00 to $22.50 and gave the stock a "neutral" rating in a research note on Wednesday, July 16th. JMP Securities set a $23.00 price target on Ares Capital and gave the stock a "market outperform" rating in a research note on Thursday, July 31st. Citigroup reiterated an "outperform" rating on shares of Ares Capital in a research note on Thursday, July 31st. Finally, B. Riley upgraded Ares Capital from a "neutral" rating to a "buy" rating and increased their price target for the stock from $22.50 to $23.50 in a research note on Wednesday, July 30th. Seven analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $22.86.

About Ares Capital

Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.

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