Hsbc Holdings PLC Buys Shares of 64,500 Ares Capital Corporation $ARCC

Hsbc Holdings PLC bought a new position in shares of Ares Capital Corporation (NASDAQ:ARCC) during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund bought 64,500 shares of the investment management company’s stock, valued at approximately $1,305,000.

Several other institutional investors also recently modified their holdings of ARCC. Palladiem LLC bought a new stake in Ares Capital during the 4th quarter worth $26,000. SWAN Capital LLC bought a new position in Ares Capital in the third quarter valued at about $27,000. Sankala Group LLC bought a new position in Ares Capital in the fourth quarter valued at about $28,000. Core Wealth Advisors LLC acquired a new stake in shares of Ares Capital during the fourth quarter valued at about $33,000. Finally, Quarry LP acquired a new stake in shares of Ares Capital during the third quarter valued at about $33,000. 27.38% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

ARCC has been the topic of several research reports. Weiss Ratings restated a “hold (c)” rating on shares of Ares Capital in a report on Tuesday, June 9th. JPMorgan Chase & Co. dropped their price objective on shares of Ares Capital from $22.00 to $19.00 and set an “overweight” rating for the company in a report on Friday, March 13th. UBS Group cut their target price on shares of Ares Capital from $21.00 to $19.00 and set a “neutral” rating on the stock in a research report on Friday, March 13th. Wells Fargo & Company reissued 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. Finally, Oppenheimer decreased their price target on shares of Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a research report on Wednesday, April 29th. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $20.65.

Ares Capital Stock Performance

NASDAQ:ARCC opened at $18.66 on Thursday. The company has a fifty day moving average of $18.70 and a 200-day moving average of $19.13. The firm has a market capitalization of $13.40 billion, a P/E ratio of 11.45 and a beta of 0.56. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.13. Ares Capital Corporation has a twelve month low of $17.40 and a twelve month high of $23.42.

Ares Capital (NASDAQ:ARCC) last issued its earnings results on Tuesday, April 28th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.48 by ($0.01). The company had revenue of $763.00 million for the quarter, compared to the consensus estimate of $778.00 million. Ares Capital had a return on equity of 9.85% and a net margin of 37.30%.The firm’s revenue was up 4.2% compared to the same quarter last year. During the same period in the prior year, the company earned $0.50 earnings per share. As a group, sell-side analysts anticipate that Ares Capital Corporation will post 1.91 EPS for the current year.

Ares Capital Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were given a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 10.3%. The ex-dividend date of this dividend was Monday, June 15th. Ares Capital’s payout ratio is presently 117.79%.

Ares Capital 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.