Closed End Fund Advisors Inc. Takes Position in Ares Capital Corporation $ARCC

Closed End Fund Advisors Inc. purchased a new stake in Ares Capital Corporation (NASDAQ:ARCC) during the 4th quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 170,922 shares of the investment management company’s stock, valued at approximately $3,458,000. Ares Capital comprises approximately 2.0% of Closed End Fund Advisors Inc.’s investment portfolio, making the stock its 12th largest position.

Several other large investors have also modified their holdings of ARCC. SWAN Capital LLC acquired a new position in shares of Ares Capital in the 3rd quarter valued at $27,000. Quarry LP acquired a new position in shares of Ares Capital in the 3rd quarter valued at $33,000. Core Wealth Advisors LLC acquired a new position in shares of Ares Capital in the 4th quarter valued at $33,000. WFA of San Diego LLC acquired a new position in shares of Ares Capital in the 2nd quarter valued at $36,000. Finally, Ameriflex Group Inc. lifted its stake in shares of Ares Capital by 201.0% in the 3rd quarter. Ameriflex Group Inc. now owns 1,764 shares of the investment management company’s stock valued at $36,000 after purchasing an additional 1,178 shares during the last quarter. Institutional investors and hedge funds own 27.38% of the company’s stock.

Ares Capital Price Performance

ARCC opened at $18.79 on Friday. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 1.13. The firm has a market cap of $13.49 billion, a price-to-earnings ratio of 11.53 and a beta of 0.56. The stock’s 50-day moving average price is $18.63 and its 200 day moving average price is $19.39. Ares Capital Corporation has a 12-month low of $17.40 and a 12-month high of $23.42.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings results on Tuesday, April 28th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.01). The company had revenue of $763.00 million during the quarter, compared to analyst estimates of $778.00 million. Ares Capital had a net margin of 37.30% and a return on equity of 9.85%. Ares Capital’s revenue for the quarter was up 4.2% on a year-over-year basis. During the same period in the prior year, the business earned $0.50 EPS. As a group, sell-side analysts expect that Ares Capital Corporation will post 1.91 earnings per share for the current year.

Ares Capital Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be given a $0.48 dividend. The ex-dividend date of this dividend is Monday, June 15th. This represents a $1.92 dividend on an annualized basis and a yield of 10.2%. Ares Capital’s dividend payout ratio (DPR) is currently 117.79%.

Analyst Upgrades and Downgrades

ARCC has been the topic of several research reports. JPMorgan Chase & Co. decreased their target price on Ares Capital from $22.00 to $19.00 and set an “overweight” rating on the stock in a research note on Friday, March 13th. Oppenheimer decreased their target price on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a research note on Wednesday, April 29th. Keefe, Bruyette & Woods decreased their target price on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a research note on Thursday, April 16th. Wall Street Zen lowered Ares Capital from a “hold” rating to a “sell” rating in a research note on Saturday, February 7th. Finally, Royal Bank Of Canada decreased their target price on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a research note on Wednesday, April 29th. Nine analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $20.75.

Ares Capital 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.