Texas Capital Bancshares Inc TX Makes New Investment in Ares Capital Corporation $ARCC

Key Points

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

Other institutional investors and hedge funds have also bought and sold shares of the company. Allspring Global Investments Holdings LLC grew its position in Ares Capital by 0.7% during the first quarter. Allspring Global Investments Holdings LLC now owns 241,119 shares of the investment management company's stock valued at $5,343,000 after acquiring an additional 1,776 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. grew its position in Ares Capital by 18.2% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 47,840 shares of the investment management company's stock valued at $1,058,000 after acquiring an additional 7,381 shares during the last quarter. Bessemer Group Inc. grew its position in Ares Capital by 23,571.4% during the first quarter. Bessemer Group Inc. now owns 3,314 shares of the investment management company's stock valued at $73,000 after acquiring an additional 3,300 shares during the last quarter. GAMMA Investing LLC grew its position in Ares Capital by 2,116.0% during the first quarter. GAMMA Investing LLC now owns 13,274 shares of the investment management company's stock valued at $2,940,000 after acquiring an additional 12,675 shares during the last quarter. Finally, SG Americas Securities LLC boosted its stake in shares of Ares Capital by 2.8% during the first quarter. SG Americas Securities LLC now owns 24,361 shares of the investment management company's stock valued at $540,000 after purchasing an additional 666 shares during the period. 27.38% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

ARCC has been the subject of a number of analyst reports. Wall Street Zen raised Ares Capital from a "sell" rating to a "hold" rating in a research note on Saturday, August 16th. UBS Group increased their price objective on Ares Capital from $22.00 to $22.50 and gave the company a "neutral" rating in a research note on Wednesday, July 16th. Wells Fargo & Company increased their price objective on Ares Capital from $22.00 to $23.00 and gave the company an "overweight" rating in a research note on Wednesday, July 30th. Keefe, Bruyette & Woods increased their price objective on Ares Capital from $22.00 to $23.00 and gave the company an "outperform" rating in a research note on Wednesday, July 30th. Finally, Royal Bank Of Canada dropped their price objective on Ares Capital from $24.00 to $23.00 and set an "outperform" rating for the company in a research note on Tuesday, May 6th. Seven research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $22.86.

Ares Capital Trading Up 0.3%

ARCC stock traded up $0.06 on Friday, reaching $22.32. The company's stock had a trading volume of 3,696,279 shares, compared to its average volume of 3,699,895. The business has a fifty day simple moving average of $22.38 and a two-hundred day simple moving average of $21.95. Ares Capital Corporation has a 12-month low of $18.26 and a 12-month high of $23.84. The firm has a market cap of $15.74 billion, a PE ratio of 10.89 and a beta of 0.70. The company has a debt-to-equity ratio of 1.01, a quick ratio of 1.14 and a current ratio of 1.14.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its quarterly earnings results 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). Ares Capital had a return on equity of 10.48% and a net margin of 44.94%.The business had revenue of $614.00 million during the quarter, compared to analysts' expectations of $748.76 million. During the same period in the previous year, the business earned $0.61 EPS. As a group, research analysts forecast that Ares Capital Corporation will post 2.19 EPS for the current year.

Ares Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Investors 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 dividend payout ratio (DPR) is presently 93.66%.

Ares Capital Company 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.