Rollins Financial Advisors LLC Boosts 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 boosted its holdings in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 10.2% in the first quarter, according to its most recent filing with the SEC. The institutional investor owned 138,139 shares of the investment management company's stock after buying an additional 12,838 shares during the period. Rollins Financial Advisors LLC's holdings in Ares Capital were worth $3,061,000 as of its most recent SEC filing.

A number of other institutional investors have also recently made changes to their positions in the company. Elequin Capital LP purchased a new position in shares of Ares Capital during the first quarter valued at about $30,000. Continuum Advisory LLC grew its position in shares of Ares Capital by 320.7% during the first quarter. Continuum Advisory LLC now owns 1,628 shares of the investment management company's stock valued at $36,000 after purchasing an additional 1,241 shares in the last quarter. Investment Management Corp VA ADV grew its position in shares of Ares Capital by 193.9% during the first quarter. Investment Management Corp VA ADV now owns 1,828 shares of the investment management company's stock valued at $41,000 after purchasing an additional 1,206 shares in the last quarter. PSI Advisors LLC grew its position in shares of Ares Capital by 121.1% during the first quarter. PSI Advisors LLC now owns 2,100 shares of the investment management company's stock valued at $47,000 after purchasing an additional 1,150 shares in the last quarter. Finally, Archer Investment Corp grew its position in shares of Ares Capital by 281.3% during the first quarter. Archer Investment Corp now owns 2,440 shares of the investment management company's stock valued at $54,000 after purchasing an additional 1,800 shares in the last quarter. Hedge funds and other institutional investors own 27.38% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on ARCC. B. Riley upgraded Ares Capital from a "neutral" rating to a "buy" rating and raised their price objective for the company from $22.50 to $23.50 in a research report on Wednesday, July 30th. Wall Street Zen upgraded Ares Capital from a "sell" rating to a "hold" rating in a research report on Saturday, August 16th. Keefe, Bruyette & Woods lifted their price target on Ares Capital from $22.00 to $23.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 30th. JMP Securities set a $23.00 price target on Ares Capital and gave the stock a "market outperform" rating in a research report on Thursday, July 31st. Finally, UBS Group lifted their price target on Ares Capital from $22.00 to $22.50 and gave the stock a "neutral" rating in a research report on Wednesday, July 16th. Seven research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $22.86.

Ares Capital Stock Performance

Shares of ARCC traded down $0.25 during trading hours on Tuesday, reaching $21.07. 2,982,476 shares of the company traded hands, compared to its average volume of 4,403,684. The stock has a market capitalization of $14.86 billion, a P/E ratio of 10.29 and a beta of 0.70. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 1.01. Ares Capital Corporation has a 12-month low of $18.26 and a 12-month high of $23.84. The business has a fifty day moving average price of $22.53 and a 200-day moving average price of $21.85.

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

Ares Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be issued a dividend of $0.48 per share. The ex-dividend date of this dividend is Monday, September 15th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.1%. Ares Capital's payout ratio is 93.66%.

Ares Capital Profile

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.