Financial Management Network Inc. Boosts Stock Position in Ares Capital Corporation $ARCC

Financial Management Network Inc. raised its stake in Ares Capital Corporation (NASDAQ:ARCC) by 21.5% during the 1st quarter, HoldingsChannel reports. The firm owned 212,493 shares of the investment management company’s stock after acquiring an additional 37,647 shares during the period. Financial Management Network Inc.’s holdings in Ares Capital were worth $3,827,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also modified their holdings of the company. Ocean Park Asset Management LLC purchased a new position in Ares Capital in the 1st quarter valued at $595,000. Brookstone Capital Management lifted its stake in shares of Ares Capital by 5.1% in the 1st quarter. Brookstone Capital Management now owns 48,434 shares of the investment management company’s stock worth $873,000 after acquiring an additional 2,335 shares during the period. Baugh & Associates LLC lifted its stake in shares of Ares Capital by 32.0% in the 1st quarter. Baugh & Associates LLC now owns 304,122 shares of the investment management company’s stock worth $5,480,000 after acquiring an additional 73,672 shares during the period. Prairiewood Capital LLC boosted its holdings in shares of Ares Capital by 12.7% in the first quarter. Prairiewood Capital LLC now owns 341,678 shares of the investment management company’s stock valued at $6,157,000 after acquiring an additional 38,396 shares in the last quarter. Finally, Kavar Capital Partners Group LLC purchased a new stake in shares of Ares Capital in the first quarter valued at about $4,727,000. Institutional investors and hedge funds own 27.38% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on ARCC shares. Wells Fargo & Company reissued an “equal weight” rating and set a $19.00 price target (down from $20.00) on shares of Ares Capital in a report on Friday, June 12th. B. Riley Financial lowered their price objective on Ares Capital from $22.00 to $20.00 and set a “buy” rating on the stock in a report on Wednesday, April 29th. UBS Group dropped their target price on Ares Capital from $21.00 to $19.00 and set a “neutral” rating on the stock in a research report on Friday, March 13th. Oppenheimer cut their target price on Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a research note on Wednesday, April 29th. Finally, Truist Financial reduced their price target on Ares Capital from $23.00 to $22.00 and set a “buy” rating for the company 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 data from MarketBeat.com, Ares Capital presently has a consensus rating of “Moderate Buy” and an average target price of $20.65.

Ares Capital Stock Performance

ARCC opened at $17.84 on Tuesday. The stock’s 50 day simple moving average is $18.77 and its 200 day simple moving average is $19.26. The stock has a market cap of $12.81 billion, a P/E ratio of 10.94 and a beta of 0.56. Ares Capital Corporation has a 1-year low of $17.40 and a 1-year high of $23.42. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.40 and a quick ratio of 1.40.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings results 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 company’s quarterly revenue was up 4.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.50 EPS. As a group, equities analysts anticipate that Ares Capital Corporation will post 1.91 EPS for the current fiscal year.

Ares Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be issued a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 10.8%. The ex-dividend date of this dividend is Monday, June 15th. Ares Capital’s dividend payout ratio is 117.79%.

Ares Capital Company 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.