Titan Investment Management LLC Buys New Stake in Ares Capital Corporation $ARCC

Key Points

• Titan Investment Management initiated a new Ares Capital position, purchasing 74,548 shares valued at approximately $1.42 million. Institutional investors collectively own 27.38% of ARCC.
• Ares Capital reported quarterly EPS of $0.47, in line with analyst expectations, and announced a $0.48 quarterly dividend, equivalent to a 10.2% annualized yield.
• Analysts maintain a generally positive view, with eight Buy ratings and three Holds; the stock has a “Moderate Buy” consensus rating and an average price target of $20.39.

Titan Investment Management LLC bought a new position in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm bought 74,548 shares of the investment management company's stock, valued at approximately $1,424,000.

A number of other hedge funds and other institutional investors have also recently modified their holdings of ARCC. Van ECK Associates Corp grew its holdings in shares of Ares Capital by 22.2% in the second quarter. Van ECK Associates Corp now owns 13,306,095 shares of the investment management company's stock valued at $246,562,000 after acquiring an additional 2,418,984 shares in the last quarter. Strs Ohio bought a new stake in Ares Capital during the first quarter worth $189,210,000. Bank of America Corp DE lifted its holdings in Ares Capital by 16.0% during the first quarter. Bank of America Corp DE now owns 9,135,454 shares of the investment management company's stock worth $164,621,000 after acquiring an additional 1,259,230 shares during the period. Legal & General Group Plc purchased a new position in Ares Capital in the second quarter worth $120,538,000. Finally, HighTower Advisors LLC boosted its position in Ares Capital by 9.5% in the second quarter. HighTower Advisors LLC now owns 3,870,130 shares of the investment management company's stock worth $71,714,000 after purchasing an additional 335,197 shares during the last quarter. Hedge funds and other institutional investors own 27.38% of the company's stock.

Ares Capital Trading Up 2.1%

Shares of ARCC stock opened at $18.79 on Friday. The company has a 50 day moving average of $19.35 and a 200-day moving average of $18.99. 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 Corporation has a 12-month low of $17.40 and a 12-month high of $21.14. The firm has a market cap of $13.49 billion, a P/E ratio of 13.92 and a beta of 0.61.

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

Ares Capital Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were given a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 10.2%. The ex-dividend date of this dividend was Tuesday, September 15th. Ares Capital's dividend payout ratio (DPR) is currently 142.22%.

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. Keefe, Bruyette & Woods reduced their price objective on Ares Capital from $21.00 to $20.00 and set an "outperform" rating for the company in a research note on Thursday, July 30th. Wall Street Zen upgraded Ares Capital from a "sell" rating to a "hold" rating in a research note on Saturday, September 19th. Truist Financial cut their price target on shares of Ares Capital from $22.00 to $21.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. UBS Group boosted their price target on shares of Ares Capital from $19.00 to $21.00 and gave the stock a "neutral" rating in a report on Tuesday, September 1st. Finally, JPMorgan Chase & Co. reduced their price target on shares of Ares Capital from $19.00 to $18.50 and set an "overweight" rating for the company in a research report on Thursday, July 2nd. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $20.39.

Ares Capital Profile

Ares Capital Corporation NASDAQ: ARCC is a business development company that provides financing to middle-market companies. The company primarily invests in first-lien senior secured loans, second-lien loans, subordinated debt, and, to a lesser extent, equity securities. Its investments are generally designed to support acquisitions, recapitalizations, refinancings, growth initiatives, and other corporate activities.

Founded in 2004, Ares Capital is externally managed by Ares Capital Management LLC, an affiliate of Ares Management Corporation.

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