428,682 Ares Capital Corporation $ARCC Shares Acquired by Sound Income Strategies LLC

Sound Income Strategies LLC raised its holdings in Ares Capital Corporation (NASDAQ:ARCC) by 15.5% during the 3rd quarter, Holdings Channel reports. The institutional investor owned 3,195,050 shares of the investment management company’s stock after acquiring an additional 428,682 shares during the quarter. Ares Capital comprises 1.4% of Sound Income Strategies LLC’s holdings, making the stock its 4th biggest holding. Sound Income Strategies LLC’s holdings in Ares Capital were worth $59,875,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Van ECK Associates Corp grew its holdings in shares of Ares Capital by 22.2% in the 2nd quarter. Van ECK Associates Corp now owns 13,306,095 shares of the investment management company’s stock valued at $246,562,000 after acquiring an additional 2,418,984 shares in the last quarter. Strs Ohio bought a new stake in Ares Capital during the first quarter worth about $189,210,000. Bank of America Corp DE bought a new stake in Ares Capital during the second quarter worth about $165,569,000. Legal & General Group Plc acquired a new position in Ares Capital during the second quarter valued at approximately $120,538,000. Finally, HighTower Advisors LLC grew its stake in Ares Capital by 9.5% in the second quarter. HighTower Advisors LLC now owns 3,870,130 shares of the investment management company’s stock valued at $71,714,000 after purchasing an additional 335,197 shares in the last quarter. 27.38% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several research analysts have weighed in on ARCC shares. JPMorgan Chase & Co. lowered their price target on Ares Capital from $19.00 to $18.50 and set an “overweight” rating on the stock in a research report on Thursday, July 2nd. UBS Group upped their price target on shares of Ares Capital from $19.00 to $21.00 and gave the stock a “neutral” rating in a research report on Tuesday, September 1st. Keefe, Bruyette & Woods cut their price target on shares of Ares Capital from $21.00 to $20.00 and set an “outperform” rating for the company in a research note on Thursday, July 30th. Wells Fargo & Company reissued an “equal weight” rating and issued a $19.00 price objective (down from $20.00) on shares of Ares Capital in a research report on Friday, June 12th. Finally, Truist Financial lowered their price objective on shares of Ares Capital from $22.00 to $21.00 and set a “buy” rating on the stock in a research note on Thursday, July 30th. Eight research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $20.60.

Ares Capital Stock Performance

Ares Capital stock traded down $0.18 during mid-day trading on Friday, hitting $18.56. 3,992,272 shares of the company’s stock traded hands, compared to its average volume of 5,856,649. The firm has a 50 day simple moving average of $19.56 and a two-hundred day simple moving average of $18.95. Ares Capital Corporation has a fifty-two week low of $17.40 and a fifty-two week high of $21.14. The stock has a market cap of $13.33 billion, a price-to-earnings ratio of 13.75 and a beta of 0.61. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.28 and a quick ratio of 1.28.

Ares Capital (NASDAQ:ARCC) last released its quarterly earnings data on Wednesday, July 29th. The investment management company reported $0.47 EPS for the quarter, meeting the consensus estimate of $0.47. The firm had revenue of $768.00 million for the quarter, compared to the consensus estimate of $770.19 million. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. During the same period in the previous year, the company earned $0.50 earnings per share. On average, research analysts expect that Ares Capital Corporation will post 1.91 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were given a dividend of $0.48 per share. The ex-dividend date was Tuesday, September 15th. This represents a $1.92 annualized dividend and a yield of 10.3%. Ares Capital’s dividend payout ratio (DPR) is 142.22%.

Ares Capital Profile

Ares Capital Corporation (NASDAQ: ARCC) is a specialty finance company that operates as a business development company (BDC). It provides financing to middle-market companies, primarily through directly originated loans and other investments. Ares Capital seeks to support businesses that may require capital for acquisitions, growth initiatives, recapitalizations, refinancings and other corporate purposes.

The company invests across a range of industries and typically provides first-lien senior secured loans, second-lien loans, subordinated debt and, to a lesser extent, equity investments.