Financial Management Network Inc. Acquires New Position in Ares Capital Co. (NASDAQ:ARCC)

Financial Management Network Inc. bought a new position in Ares Capital Co. (NASDAQ:ARCC - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund bought 179,185 shares of the investment management company's stock, valued at approximately $3,648,000. Ares Capital comprises approximately 0.9% of Financial Management Network Inc.'s holdings, making the stock its 28th largest holding.

Several other large investors have also bought and sold shares of the company. Raymond James & Associates increased its position in shares of Ares Capital by 2.3% during the first quarter. Raymond James & Associates now owns 766,929 shares of the investment management company's stock valued at $15,967,000 after acquiring an additional 17,049 shares in the last quarter. GraniteShares Advisors LLC increased its holdings in shares of Ares Capital by 14.6% in the 1st quarter. GraniteShares Advisors LLC now owns 84,413 shares of the investment management company's stock worth $1,757,000 after purchasing an additional 10,738 shares in the last quarter. Accel Wealth Management raised its stake in shares of Ares Capital by 43.4% in the first quarter. Accel Wealth Management now owns 38,283 shares of the investment management company's stock worth $797,000 after purchasing an additional 11,580 shares during the last quarter. PCG Wealth Advisors LLC purchased a new position in shares of Ares Capital in the first quarter worth $248,000. Finally, Taylor Frigon Capital Management LLC boosted its position in shares of Ares Capital by 0.8% during the first quarter. Taylor Frigon Capital Management LLC now owns 84,055 shares of the investment management company's stock valued at $1,750,000 after buying an additional 651 shares during the last quarter. 27.38% of the stock is owned by hedge funds and other institutional investors.

Ares Capital Stock Performance

Shares of NASDAQ:ARCC traded up $0.15 during trading on Friday, hitting $20.78. The company's stock had a trading volume of 2,640,447 shares, compared to its average volume of 2,468,332. The company has a debt-to-equity ratio of 1.06, a current ratio of 1.24 and a quick ratio of 1.24. The firm has a market cap of $12.61 billion, a price-to-earnings ratio of 7.78 and a beta of 1.00. The company has a 50-day moving average of $20.36 and a 200-day moving average of $20.02. Ares Capital Co. has a 12 month low of $17.53 and a 12 month high of $20.86.

Ares Capital (NASDAQ:ARCC - Get Free Report) last released its quarterly earnings results on Wednesday, February 7th. The investment management company reported $0.63 earnings per share for the quarter, topping the consensus estimate of $0.60 by $0.03. Ares Capital had a net margin of 58.22% and a return on equity of 12.50%. The business had revenue of $707.00 million for the quarter, compared to the consensus estimate of $669.78 million. During the same period last year, the firm earned $0.68 earnings per share. The company's quarterly revenue was up 10.5% on a year-over-year basis. On average, sell-side analysts expect that Ares Capital Co. will post 2.35 earnings per share for the current year.

Ares Capital Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, March 29th. Shareholders of record on Friday, March 15th were issued a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 9.24%. The ex-dividend date of this dividend was Thursday, March 14th. Ares Capital's dividend payout ratio is presently 71.91%.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on ARCC. Wells Fargo & Company boosted their target price on Ares Capital from $19.00 to $20.00 and gave the stock an "equal weight" rating in a research report on Monday, January 29th. JMP Securities reissued a "market outperform" rating and set a $21.00 price objective on shares of Ares Capital in a report on Tuesday, March 26th. Finally, B. Riley cut shares of Ares Capital from a "buy" rating to a "neutral" rating and set a $21.00 target price on the stock. in a report on Monday, January 8th. Three investment analysts have rated the stock with a hold rating and two have issued a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $20.80.

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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