California Public Employees Retirement System raised its position in shares of Ares Capital Co. (NASDAQ:ARCC) by 43.5% in the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 1,042,713 shares of the investment management company’s stock after purchasing an additional 316,100 shares during the period. California Public Employees Retirement System owned about 0.24% of Ares Capital worth $19,431,000 as of its most recent filing with the Securities & Exchange Commission.
Other hedge funds and other institutional investors have also recently modified their holdings of the company. Ropes Wealth Advisors LLC bought a new position in shares of Ares Capital in the 2nd quarter worth $27,000. Signaturefd LLC raised its position in shares of Ares Capital by 164.5% in the 3rd quarter. Signaturefd LLC now owns 1,645 shares of the investment management company’s stock worth $31,000 after acquiring an additional 1,023 shares in the last quarter. Arcadia Investment Management Corp MI raised its position in shares of Ares Capital by 109.9% in the 2nd quarter. Arcadia Investment Management Corp MI now owns 1,889 shares of the investment management company’s stock worth $34,000 after acquiring an additional 989 shares in the last quarter. Private Ocean LLC bought a new position in shares of Ares Capital in the 3rd quarter worth $35,000. Finally, FTB Advisors Inc. raised its position in shares of Ares Capital by 106.4% in the 3rd quarter. FTB Advisors Inc. now owns 1,940 shares of the investment management company’s stock worth $36,000 after acquiring an additional 1,000 shares in the last quarter. 36.31% of the stock is owned by institutional investors and hedge funds.
Shares of NASDAQ:ARCC opened at $18.53 on Friday. The business’s 50-day moving average is $18.52 and its 200 day moving average is $18.26. Ares Capital Co. has a 1 year low of $14.50 and a 1 year high of $19.28. The firm has a market capitalization of $7.94 billion, a P/E ratio of 11.03 and a beta of 0.59. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.05 and a quick ratio of 1.05.
Ares Capital (NASDAQ:ARCC) last announced its earnings results on Wednesday, October 30th. The investment management company reported $0.48 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.46 by $0.02. Ares Capital had a return on equity of 10.97% and a net margin of 49.90%. The company had revenue of $387.00 million for the quarter, compared to analyst estimates of $370.17 million. During the same period in the prior year, the company posted $0.45 EPS. The firm’s quarterly revenue was up 13.2% compared to the same quarter last year. On average, analysts expect that Ares Capital Co. will post 1.89 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Monday, December 30th. Investors of record on Monday, December 16th will be given a dividend of $0.42 per share. This is a positive change from Ares Capital’s previous quarterly dividend of $0.40. This represents a $1.68 annualized dividend and a yield of 9.07%. The ex-dividend date is Friday, December 13th. Ares Capital’s dividend payout ratio is currently 95.24%.
ARCC has been the subject of several recent research reports. BidaskClub lowered Ares Capital from a “hold” rating to a “sell” rating in a research report on Wednesday, October 30th. BMO Capital Markets raised Ares Capital from a “market perform” rating to an “outperform” rating and boosted their price target for the stock from $19.00 to $20.00 in a research report on Monday, August 19th. ValuEngine raised Ares Capital from a “sell” rating to a “hold” rating in a research report on Thursday, October 31st. Raymond James lowered Ares Capital from an “outperform” rating to a “market perform” rating in a research report on Tuesday, October 22nd. They noted that the move was a valuation call. Finally, Compass Point lowered Ares Capital from a “buy” rating to a “neutral” rating in a research report on Friday, August 23rd. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and five have assigned a buy rating to the company. Ares Capital has an average rating of “Hold” and an average target price of $19.83.
In other news, Director Steve Bartlett purchased 14,177 shares of the company’s stock in a transaction on Thursday, October 31st. The shares were acquired at an average price of $18.35 per share, for a total transaction of $260,147.95. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Steven B. Mckeever purchased 5,425 shares of the company’s stock in a transaction on Wednesday, August 14th. The shares were purchased at an average price of $18.42 per share, for a total transaction of $99,928.50. Following the purchase, the director now owns 24,795 shares in the company, valued at approximately $456,723.90. The disclosure for this purchase can be found here. Corporate insiders own 0.53% of the company’s stock.
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.
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