Texas Capital Bancshares Inc TX Takes Position in Ares Capital Corporation $ARCC

Key Points

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Texas Capital Bancshares Inc TX acquired a new stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) during the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 44,569 shares of the investment management company's stock, valued at approximately $988,000. Ares Capital accounts for 0.4% of Texas Capital Bancshares Inc TX's investment portfolio, making the stock its 28th largest position.

A number of other institutional investors and hedge funds have also modified their holdings of the company. Texas Capital Bank Wealth Management Services Inc increased its position in shares of Ares Capital by 7.9% during the first quarter. Texas Capital Bank Wealth Management Services Inc now owns 166,924 shares of the investment management company's stock valued at $3,699,000 after purchasing an additional 12,190 shares during the period. M Holdings Securities Inc. increased its position in shares of Ares Capital by 1.9% during the first quarter. M Holdings Securities Inc. now owns 50,563 shares of the investment management company's stock valued at $1,120,000 after purchasing an additional 951 shares during the period. Quantbot Technologies LP bought a new stake in shares of Ares Capital during the first quarter valued at approximately $180,000. Wellington Management Group LLP bought a new stake in shares of Ares Capital during the first quarter valued at approximately $10,858,000. Finally, Cornerstone Select Advisors LLC boosted its stake in Ares Capital by 10.3% in the 1st quarter. Cornerstone Select Advisors LLC now owns 141,291 shares of the investment management company's stock valued at $3,131,000 after buying an additional 13,159 shares in the last quarter. 27.38% of the stock is currently owned by institutional investors.

Ares Capital Price Performance

Ares Capital stock opened at $22.41 on Tuesday. The company has a debt-to-equity ratio of 1.01, a quick ratio of 1.14 and a current ratio of 1.14. The firm has a market cap of $15.81 billion, a P/E ratio of 10.93 and a beta of 0.70. The business's fifty day moving average is $22.37 and its two-hundred day moving average is $21.98. Ares Capital Corporation has a 52 week low of $18.26 and a 52 week high of $23.84.

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

Ares Capital Dividend Announcement

The firm also recently disclosed 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 of this dividend is Monday, September 15th. This represents a $1.92 dividend on an annualized basis and a yield of 8.6%. Ares Capital's payout ratio is currently 93.66%.

Analysts Set New Price Targets

Several analysts recently commented on the company. JMP Securities set a $23.00 price target on Ares Capital and gave the company a "market outperform" rating in a research note on Thursday, July 31st. B. Riley raised Ares Capital from a "neutral" rating to a "buy" rating and boosted their price target for the company from $22.50 to $23.50 in a research note on Wednesday, July 30th. Royal Bank Of Canada decreased their price target on Ares Capital from $24.00 to $23.00 and set an "outperform" rating on the stock in a research note on Tuesday, May 6th. UBS Group boosted their price target on Ares Capital from $22.00 to $22.50 and gave the company a "neutral" rating in a research note on Wednesday, July 16th. Finally, Wells Fargo & Company boosted their price target on Ares Capital from $22.00 to $23.00 and gave the company an "overweight" rating in a research note on Wednesday, July 30th. Three investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target 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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