Ares Capital Corporation $ARCC Shares Sold by Royal Bank of Canada

Key Points

• Royal Bank of Canada has reduced its stake in Ares Capital Corporation by 13.0%, selling 530,186 shares and now owning approximately 3.56 million shares valued at $78.9 million.
• Ares Capital announced a quarterly dividend of $0.48 per share, which indicates an annualized yield of 8.6% and a dividend payout ratio of 93.66%.
• Analysts have improved their outlook on Ares Capital, with several firms raising their price targets; the average target price now stands at $22.86 with a recommendation of "Moderate Buy."

Royal Bank of Canada lowered its stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 13.0% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 3,560,479 shares of the investment management company's stock after selling 530,186 shares during the period. Royal Bank of Canada owned approximately 0.52% of Ares Capital worth $78,900,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Elequin Capital LP bought a new stake in shares of Ares Capital during the 1st quarter valued at about $30,000. Continuum Advisory LLC grew its holdings in Ares Capital by 320.7% during the 1st quarter. Continuum Advisory LLC now owns 1,628 shares of the investment management company's stock worth $36,000 after acquiring an additional 1,241 shares in the last quarter. Investment Management Corp VA ADV raised its position in Ares Capital by 193.9% during the 1st quarter. Investment Management Corp VA ADV now owns 1,828 shares of the investment management company's stock worth $41,000 after buying an additional 1,206 shares during the last quarter. PSI Advisors LLC grew its stake in Ares Capital by 121.1% in the 1st quarter. PSI Advisors LLC now owns 2,100 shares of the investment management company's stock valued at $47,000 after acquiring an additional 1,150 shares during the period. Finally, Archer Investment Corp boosted its position in shares of Ares Capital by 281.3% during the 1st quarter. Archer Investment Corp now owns 2,440 shares of the investment management company's stock valued at $54,000 after acquiring an additional 1,800 shares during the last quarter. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on ARCC shares. Citigroup reiterated an "outperform" rating on shares of Ares Capital in a research report on Thursday, July 31st. B. Riley upgraded Ares Capital from a "neutral" rating to a "buy" rating and raised their target price for the stock from $22.50 to $23.50 in a research report on Wednesday, July 30th. Wells Fargo & Company increased their price target on Ares Capital from $22.00 to $23.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th. Keefe, Bruyette & Woods boosted their price objective on Ares Capital from $22.00 to $23.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 30th. Finally, JMP Securities set a $23.00 price target on Ares Capital and gave the company a "market outperform" rating in a research report on Thursday, July 31st. Seven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Ares Capital has an average rating of "Moderate Buy" and a consensus price target of $22.86.

Ares Capital Price Performance

ARCC traded up $0.03 during midday trading on Monday, reaching $22.47. 2,257,931 shares of the company's stock were exchanged, compared to its average volume of 4,397,076. Ares Capital Corporation has a 1-year low of $18.26 and a 1-year high of $23.84. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.14 and a quick ratio of 1.14. The business's 50-day moving average price is $22.53 and its 200 day moving average price is $21.89. The stock has a market capitalization of $15.85 billion, a PE ratio of 10.95 and a beta of 0.70.

Ares Capital (NASDAQ:ARCC - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The investment management company reported $0.50 earnings per share for the quarter, missing the consensus estimate of $0.51 by ($0.01). Ares Capital had a net margin of 44.94% and a return on equity of 10.48%. The firm 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 earnings per share. As a group, equities analysts anticipate that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th will be issued a dividend of $0.48 per share. The ex-dividend date is Monday, September 15th. This represents a $1.92 annualized dividend and a yield of 8.5%. Ares Capital's dividend payout ratio (DPR) is presently 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.