SCS Capital Management LLC Takes Position in Ares Capital Corporation $ARCC

Key Points

• SCS Capital Management acquired 345,103 shares of Ares Capital in the second quarter, valued at approximately $6.4 million. Institutional investors collectively own 27.38% of ARCC.
• Ares Capital reported quarterly EPS of $0.47, matching analyst expectations, while revenue totaled $768 million. Analysts expect full-year EPS of approximately $1.91.
• The company declared a quarterly dividend of $0.48 per share, or $1.92 annually, representing a 9.7% yield; analysts maintain a “Moderate Buy” consensus with a $20.40 target price.

SCS Capital Management LLC purchased a new position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 345,103 shares of the investment management company's stock, valued at approximately $6,395,000.

Several other hedge funds and other institutional investors also recently made changes to their positions in ARCC. Palladiem LLC purchased a new position in Ares Capital during the fourth quarter valued at $26,000. SWAN Capital LLC purchased a new stake in shares of Ares Capital in the third quarter worth $27,000. Sankala Group LLC bought a new position in shares of Ares Capital during the fourth quarter valued at $28,000. Core Wealth Advisors LLC purchased a new position in shares of Ares Capital in the 4th quarter worth about $33,000. Finally, Quarry LP purchased a new position in shares of Ares Capital in the 3rd quarter worth about $33,000. Hedge funds and other institutional investors own 27.38% of the company's stock.

Ares Capital Price Performance

NASDAQ ARCC opened at $19.87 on Monday. Ares Capital Corporation has a one year low of $17.40 and a one year high of $22.76. The stock has a 50-day moving average of $18.86 and a 200 day moving average of $18.82. The company has a market capitalization of $14.27 billion, a price-to-earnings ratio of 14.72 and a beta of 0.56. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.28 and a current ratio of 1.28.

Ares Capital (NASDAQ:ARCC - Get Free Report) last issued its earnings results on Wednesday, July 29th. The investment management company reported $0.47 earnings per share for the quarter, hitting analysts' consensus estimates of $0.47. The business had revenue of $768.00 million during the quarter, compared to analyst estimates of $770.19 million. Ares Capital had a return on equity of 9.80% and a net margin of 30.91%.During the same quarter in the previous year, the firm earned $0.50 EPS. On average, sell-side analysts forecast that Ares Capital Corporation will post 1.91 EPS for the current year.

Ares Capital Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be issued a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 9.7%. The ex-dividend date of this dividend is Tuesday, September 15th. Ares Capital's payout ratio is presently 142.22%.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on ARCC shares. Weiss Ratings reiterated a "hold (c)" rating on shares of Ares Capital in a research note on Tuesday, June 9th. Wall Street Zen cut shares of Ares Capital from a "hold" rating to a "sell" rating in a report on Sunday, August 2nd. Royal Bank Of Canada dropped their target price on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating on the stock in a research note on Wednesday, April 29th. B. Riley Financial cut their price target on shares of Ares Capital from $22.00 to $20.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. Finally, Wells Fargo & Company reissued an "equal weight" rating and set a $19.00 price target (down from $20.00) on shares of Ares Capital in a research report on Friday, June 12th. Eight equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $20.40.

Ares Capital Company 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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