Texas Capital Bank Wealth Management Services Inc Makes New $4.63 Million Investment in Ares Capital Corporation $ARCC

Key Points

• Texas Capital Bank Wealth Management Services purchased 250,049 shares of Ares Capital, valued at approximately $4.63 million, during the second quarter. Institutional investors collectively own 27.38% of ARCC.
• Analysts maintain a generally positive outlook, with eight Buy ratings and three Holds producing a consensus “Moderate Buy” rating and an average price target of $20.40, despite several recent target-price cuts.
• Ares Capital reported quarterly EPS of $0.47, matching estimates, and declared a $0.48-per-share quarterly dividend. The annualized dividend of $1.92 represents a yield of roughly 9.8%.

Texas Capital Bank Wealth Management Services Inc purchased a new stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) during the second quarter, according to the company in its most recent filing with the SEC. The firm purchased 250,049 shares of the investment management company's stock, valued at approximately $4,633,000.

Several other institutional investors also recently made changes to their positions in ARCC. AQR Capital Management LLC grew its position in Ares Capital by 6.5% during the first quarter. AQR Capital Management LLC now owns 16,502 shares of the investment management company's stock valued at $365,000 after acquiring an additional 1,000 shares during the period. Dynamic Technology Lab Private Ltd acquired a new position in shares of Ares Capital in the 1st quarter valued at about $273,000. Goldman Sachs Group Inc. lifted its stake in shares of Ares Capital by 14.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,835,007 shares of the investment management company's stock valued at $62,824,000 after purchasing an additional 358,829 shares in the last quarter. Empowered Funds LLC grew its holdings in shares of Ares Capital by 139.9% during the 1st quarter. Empowered Funds LLC now owns 27,655 shares of the investment management company's stock worth $613,000 after purchasing an additional 16,128 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC purchased a new stake in shares of Ares Capital during the 1st quarter worth about $14,766,000. 27.38% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the stock. Oppenheimer dropped their target price on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a research report on Wednesday, April 29th. Citizens Jmp reduced their price target on shares of Ares Capital from $23.00 to $22.00 and set a "market outperform" rating on the stock in a research report on Wednesday, April 22nd. Royal Bank Of Canada decreased their price objective on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a research note on Wednesday, April 29th. Wall Street Zen lowered shares of Ares Capital from a "hold" rating to a "sell" rating in a research report on Sunday, August 2nd. Finally, B. Riley Financial cut their target price on shares of Ares Capital from $22.00 to $20.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $20.40.

Ares Capital Price Performance

Shares of NASDAQ ARCC opened at $19.64 on Tuesday. Ares Capital Corporation has a 1-year low of $17.40 and a 1-year high of $22.62. The business has a 50-day moving average of $18.88 and a 200-day moving average of $18.82. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.28 and a quick ratio of 1.28. The company has a market capitalization of $14.10 billion, a price-to-earnings ratio of 14.55 and a beta of 0.56.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its earnings results on Wednesday, July 29th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, meeting 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 last year, the firm earned $0.50 earnings per share. On average, equities analysts anticipate that Ares Capital Corporation will post 1.91 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be paid a dividend of $0.48 per share. The ex-dividend date is Tuesday, September 15th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.8%. Ares Capital's dividend payout ratio (DPR) is currently 142.22%.

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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