Allen Investment Management LLC Buys 114,180 Shares of Ares Capital Co. (NASDAQ:ARCC)

Allen Investment Management LLC boosted its stake in Ares Capital Co. (NASDAQ:ARCC) by 6.9% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 1,778,492 shares of the investment management company’s stock after purchasing an additional 114,180 shares during the quarter. Ares Capital comprises about 0.5% of Allen Investment Management LLC’s investment portfolio, making the stock its 28th largest holding. Allen Investment Management LLC’s holdings in Ares Capital were worth $37,064,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also recently added to or reduced their stakes in ARCC. Jamison Private Wealth Management Inc. grew its position in shares of Ares Capital by 62.7% in the 2nd quarter. Jamison Private Wealth Management Inc. now owns 1,233 shares of the investment management company’s stock valued at $26,000 after purchasing an additional 475 shares during the period. Capital Investment Advisors LLC raised its holdings in shares of Ares Capital by 1.6% during the second quarter. Capital Investment Advisors LLC now owns 32,691 shares of the investment management company’s stock worth $681,000 after acquiring an additional 499 shares during the period. Lewis Asset Management LLC boosted its stake in Ares Capital by 2.1% in the 1st quarter. Lewis Asset Management LLC now owns 24,805 shares of the investment management company’s stock worth $516,000 after purchasing an additional 500 shares during the period. Chapin Davis Inc. grew its stake in shares of Ares Capital by 2.2% in the first quarter. Chapin Davis Inc. now owns 22,966 shares of the investment management company’s stock valued at $478,000 after buying an additional 501 shares in the last quarter. Finally, Perigon Wealth Management LLC raised its position in Ares Capital by 1.8% during the first quarter. Perigon Wealth Management LLC now owns 33,354 shares of the investment management company’s stock worth $694,000 after acquiring an additional 584 shares in the last quarter. Institutional investors and hedge funds own 27.38% of the company’s stock.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on ARCC shares. JMP Securities boosted their price objective on shares of Ares Capital from $21.00 to $22.00 and gave the stock a “market outperform” rating in a research note on Tuesday, July 30th. Compass Point raised Ares Capital to a “strong-buy” rating in a research report on Tuesday, July 30th. Royal Bank of Canada reaffirmed an “outperform” rating and issued a $22.00 price objective on shares of Ares Capital in a research report on Monday, August 5th. Finally, UBS Group raised Ares Capital to a “hold” rating in a report on Friday, August 23rd. Four analysts have rated the stock with a hold rating, five have given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, Ares Capital has a consensus rating of “Moderate Buy” and a consensus price target of $21.71.

Ares Capital Stock Performance

ARCC opened at $20.37 on Friday. The company has a debt-to-equity ratio of 1.05, a quick ratio of 1.40 and a current ratio of 1.40. Ares Capital Co. has a 52-week low of $18.55 and a 52-week high of $21.84. The firm has a market cap of $12.52 billion, a P/E ratio of 6.98 and a beta of 1.01. The business’s fifty day moving average is $20.80 and its 200-day moving average is $20.76.

Ares Capital (NASDAQ:ARCC) last released its earnings results on Tuesday, July 30th. The investment management company reported $0.61 EPS for the quarter, beating the consensus estimate of $0.58 by $0.03. Ares Capital had a net margin of 59.76% and a return on equity of 12.24%. The firm had revenue of $755.00 million for the quarter, compared to analyst estimates of $714.27 million. During the same period last year, the firm earned $0.58 EPS. Sell-side analysts expect that Ares Capital Co. will post 2.38 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, September 30th. Stockholders of record on Friday, September 13th will be issued a $0.48 dividend. The ex-dividend date of this dividend is Friday, September 13th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.43%. Ares Capital’s dividend payout ratio (DPR) is currently 65.75%.

Ares Capital 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.