Eos Management L.P. Makes New $1.42 Million Investment in Ares Capital Corporation $ARCC

Eos Management L.P. bought a new position in Ares Capital Corporation (NASDAQ:ARCC) in the 4th quarter, according to its most recent filing with the SEC. The institutional investor bought 70,000 shares of the investment management company’s stock, valued at approximately $1,416,000.

Several other hedge funds have also made changes to their positions in ARCC. AQR Capital Management LLC raised its holdings in shares of Ares Capital by 6.5% in the first quarter. AQR Capital Management LLC now owns 16,502 shares of the investment management company’s stock valued at $365,000 after acquiring an additional 1,000 shares in the last quarter. Dynamic Technology Lab Private Ltd bought a new position in Ares Capital during the 1st quarter worth about $273,000. Goldman Sachs Group Inc. grew its holdings in Ares Capital by 14.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,835,007 shares of the investment management company’s stock worth $62,824,000 after acquiring an additional 358,829 shares in the last quarter. Empowered Funds LLC increased its position in Ares Capital by 139.9% during the 1st quarter. Empowered Funds LLC now owns 27,655 shares of the investment management company’s stock valued at $613,000 after purchasing an additional 16,128 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC purchased a new position in Ares Capital during the 1st quarter valued at about $14,766,000. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

Ares Capital Price Performance

ARCC stock opened at $18.03 on Friday. The stock has a market capitalization of $12.95 billion, a PE ratio of 11.06 and a beta of 0.56. Ares Capital Corporation has a 52 week low of $17.40 and a 52 week high of $23.42. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.13. The firm has a 50 day moving average of $18.77 and a 200 day moving average of $19.29.

Ares Capital (NASDAQ:ARCC) last issued 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). Ares Capital had a net margin of 37.30% and a return on equity of 9.85%. The company had revenue of $763.00 million for the quarter, compared to analyst estimates of $778.00 million. During the same quarter in the previous year, the company posted $0.50 EPS. The company’s revenue for the quarter was up 4.2% compared to the same quarter last year. Sell-side analysts forecast that Ares Capital Corporation will post 1.91 earnings per share for the current year.

Ares Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be given a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 10.6%. The ex-dividend date of this dividend is Monday, June 15th. Ares Capital’s dividend payout ratio is presently 117.79%.

Wall Street Analysts Forecast Growth

ARCC has been the subject of several recent research reports. Royal Bank Of Canada reduced their price target on shares of Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a report on Wednesday, April 29th. Citizens Jmp dropped their price objective on shares of Ares Capital from $23.00 to $22.00 and set a “market outperform” rating on the stock in a research note on Wednesday, April 22nd. Keefe, Bruyette & Woods cut their price objective on shares of Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Thursday, April 16th. Truist Financial reduced their price objective on shares of Ares Capital from $23.00 to $22.00 and set a “buy” rating for the company in a research note on Wednesday, April 29th. Finally, Wells Fargo & Company restated an “equal weight” rating and set a $19.00 target price (down from $20.00) on shares of Ares Capital in a report on Friday, June 12th. Eight research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, Ares Capital presently has an average rating of “Moderate Buy” and a consensus target price of $20.65.

About Ares Capital

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.