Farmers & Merchants Investments Inc. Boosts Stake in Ares Capital Co. (NASDAQ:ARCC)

Farmers & Merchants Investments Inc. raised its position in Ares Capital Co. (NASDAQ:ARCC) by 200.0% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 3,000 shares of the investment management company’s stock after purchasing an additional 2,000 shares during the quarter. Farmers & Merchants Investments Inc.’s holdings in Ares Capital were worth $66,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also modified their holdings of the company. Horizon Financial Services LLC purchased a new stake in shares of Ares Capital in the third quarter worth about $28,000. Blue Trust Inc. lifted its position in Ares Capital by 56.8% during the 3rd quarter. Blue Trust Inc. now owns 2,510 shares of the investment management company’s stock worth $52,000 after acquiring an additional 909 shares in the last quarter. Quarry LP purchased a new position in Ares Capital in the 3rd quarter worth approximately $67,000. Centennial Bank AR acquired a new stake in Ares Capital in the third quarter valued at approximately $102,000. Finally, Avior Wealth Management LLC raised its stake in shares of Ares Capital by 19.6% during the fourth quarter. Avior Wealth Management LLC now owns 4,900 shares of the investment management company’s stock valued at $107,000 after purchasing an additional 803 shares during the period. 27.38% of the stock is owned by institutional investors and hedge funds.

Ares Capital Stock Up 0.0 %

Shares of ARCC opened at $22.74 on Friday. The company has a quick ratio of 1.29, a current ratio of 1.21 and a debt-to-equity ratio of 1.03. The company has a 50-day moving average price of $22.40 and a two-hundred day moving average price of $21.53. The stock has a market cap of $15.27 billion, a price-to-earnings ratio of 9.28 and a beta of 1.01. Ares Capital Co. has a 12 month low of $19.32 and a 12 month high of $23.84.

Ares Capital (NASDAQ:ARCC) last announced its earnings results on Wednesday, February 5th. The investment management company reported $0.55 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.58 by ($0.03). Ares Capital had a return on equity of 11.54% and a net margin of 50.90%. Equities analysts predict that Ares Capital Co. will post 2.2 EPS for the current fiscal year.

Ares Capital Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, March 31st. Stockholders of record on Friday, March 14th will be given a dividend of $0.48 per share. The ex-dividend date of this dividend is Friday, March 14th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 8.44%. Ares Capital’s payout ratio is 78.37%.

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Keefe, Bruyette & Woods boosted their price objective on shares of Ares Capital from $22.00 to $23.00 and gave the stock an “outperform” rating in a report on Friday. Raymond James cut Ares Capital from an “outperform” rating to a “market perform” rating in a research note on Thursday. JPMorgan Chase & Co. raised their price objective on Ares Capital from $23.00 to $24.50 and gave the company an “overweight” rating in a research note on Monday, February 3rd. StockNews.com lowered Ares Capital from a “hold” rating to a “sell” rating in a research report on Friday. Finally, Royal Bank of Canada raised their price target on shares of Ares Capital from $23.00 to $24.00 and gave the stock an “outperform” rating in a research report on Friday. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, Ares Capital presently has a consensus rating of “Moderate Buy” and a consensus price target of $22.94.

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.