LGT Fund Management Co Ltd. acquired a new stake in Ares Capital Corporation (NASDAQ:ARCC – Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 412,481 shares of the investment management company’s stock, valued at approximately $7,433,000.
Other institutional investors and hedge funds have also recently modified their holdings of the company. Strs Ohio acquired a new position in Ares Capital in the 1st quarter worth approximately $189,210,000. UBS Group AG lifted its stake in Ares Capital by 41.8% during the 4th quarter. UBS Group AG now owns 11,201,905 shares of the investment management company’s stock valued at $226,615,000 after acquiring an additional 3,301,890 shares during the period. Marshall Wace LLP purchased a new stake in shares of Ares Capital in the 3rd quarter valued at $36,943,000. Altshuler Shaham Ltd acquired a new stake in shares of Ares Capital in the fourth quarter worth $33,380,000. Finally, Michael & Susan Dell Foundation purchased a new position in shares of Ares Capital during the fourth quarter worth $26,089,000. Institutional investors and hedge funds own 27.38% of the company’s stock.
Wall Street Analysts Forecast Growth
A number of research firms recently issued reports on ARCC. Truist Financial decreased their target price on shares of Ares Capital from $23.00 to $22.00 and set a “buy” rating for the company in a research report on Wednesday, April 29th. B. Riley Financial reduced their price objective on Ares Capital from $22.00 to $20.00 and set a “buy” rating for the company in a research note on Wednesday, April 29th. JPMorgan Chase & Co. decreased their price objective on Ares Capital from $19.00 to $18.50 and set an “overweight” rating for the company in a report on Thursday, July 2nd. Weiss Ratings restated a “hold (c)” rating on shares of Ares Capital in a research note on Tuesday, June 9th. Finally, Oppenheimer dropped their target price on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Wednesday, April 29th. Eight equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $20.60.
Ares Capital Stock Performance
NASDAQ ARCC traded up $0.37 during mid-day trading on Friday, reaching $18.78. 4,158,632 shares of the stock were exchanged, compared to its average volume of 4,969,911. The business’s 50 day moving average is $18.67 and its 200-day moving average is $19.05. Ares Capital Corporation has a 1 year low of $17.40 and a 1 year high of $23.42. The company has a market capitalization of $13.48 billion, a P/E ratio of 11.52 and a beta of 0.56. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.40 and a current ratio of 1.40.
Ares Capital (NASDAQ:ARCC – Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The investment management company reported $0.47 earnings per share for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.01). The firm had revenue of $763.00 million during the quarter, compared to analysts’ expectations of $778.00 million. Ares Capital had a net margin of 37.30% and a return on equity of 9.85%. The firm’s quarterly revenue was up 4.2% on a year-over-year basis. During the same period in the previous year, the firm posted $0.50 EPS. On average, equities research analysts forecast that Ares Capital Corporation will post 1.9 EPS for the current fiscal year.
Ares Capital Announces Dividend
The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were given a dividend of $0.48 per share. The ex-dividend date was Monday, June 15th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 10.2%. Ares Capital’s dividend payout ratio (DPR) is 117.79%.
About Ares Capital
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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