Sanctuary Advisors LLC Invests $1.85 Million in Ares Capital Corporation $ARCC

Key Points

• Sanctuary Advisors LLC acquired 99,665 shares of Ares Capital worth approximately $1.85 million in the second quarter. Other institutions also initiated positions, bringing institutional and hedge-fund ownership to 27.38%.
• Ares Capital reported quarterly earnings of $0.47 per share, matching analyst expectations, while revenue of $768 million came in slightly below the $770.19 million consensus estimate.
• The company declared a quarterly dividend of $0.48 per share, equivalent to $1.92 annually and a 9.6% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $20.40.

Sanctuary Advisors LLC acquired a new stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor acquired 99,665 shares of the investment management company's stock, valued at approximately $1,847,000.

A number of other institutional investors have also added to or reduced their stakes in the company. Vista Investment Management bought a new position in shares of Ares Capital in the 2nd quarter valued at about $198,000. Elevation Point Wealth Partners LLC bought a new stake in shares of Ares Capital in the 2nd quarter valued at about $1,564,000. Commerce Bank bought a new stake in shares of Ares Capital in the 2nd quarter valued at about $1,145,000. Northwestern Mutual Wealth Management Co. acquired a new stake in Ares Capital in the 2nd quarter valued at about $315,000. Finally, EP Wealth Advisors LLC bought a new position in Ares Capital during the second quarter worth about $262,000. 27.38% of the stock is currently owned by institutional investors and hedge funds.

Ares Capital Stock Performance

Shares of NASDAQ:ARCC opened at $19.90 on Thursday. Ares Capital Corporation has a 12-month low of $17.40 and a 12-month high of $22.51. The company's 50 day moving average price is $19.02 and its two-hundred day moving average price is $18.83. The firm has a market cap of $14.29 billion, a PE ratio of 14.74 and a beta of 0.56. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.14.

Ares Capital (NASDAQ:ARCC - Get Free Report) last released its quarterly earnings results 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 company had revenue of $768.00 million during the quarter, compared to the consensus estimate of $770.19 million. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. During the same period in the previous year, the business earned $0.50 earnings per share. Equities research analysts predict that Ares Capital Corporation will post 1.91 earnings per share for the current year.

Ares Capital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be given a $0.48 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.6%. Ares Capital's dividend payout ratio (DPR) is presently 142.22%.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the company. Oppenheimer lowered their price target on Ares Capital from $22.00 to $21.00 and set an "outperform" rating on the stock 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 on the stock in a report on Thursday, July 2nd. Weiss Ratings restated a "hold (c)" rating on shares of Ares Capital in a research note on Tuesday, June 9th. Truist Financial cut their price target on Ares Capital from $22.00 to $21.00 and set a "buy" rating for the company in a report on Thursday, July 30th. Finally, Wall Street Zen cut shares of Ares Capital from a "hold" rating to a "sell" rating in a research report on Sunday, August 2nd. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price 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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