Capital Management Associates Inc Purchases 2,490 Shares of Ares Capital Corporation (NASDAQ:ARCC)

Capital Management Associates Inc boosted its position in Ares Capital Corporation (NASDAQ:ARCC) by 25.0% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 12,454 shares of the investment management company’s stock after purchasing an additional 2,490 shares during the period. Capital Management Associates Inc’s holdings in Ares Capital were worth $276,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Generali Asset Management SPA SGR bought a new stake in shares of Ares Capital in the fourth quarter valued at about $84,426,000. Raymond James Financial Inc. acquired a new stake in Ares Capital in the 4th quarter worth about $58,159,000. Two Sigma Investments LP boosted its holdings in Ares Capital by 81.0% in the 4th quarter. Two Sigma Investments LP now owns 2,678,525 shares of the investment management company’s stock valued at $58,633,000 after purchasing an additional 1,198,580 shares during the period. JPMorgan Chase & Co. grew its position in shares of Ares Capital by 26.0% during the 4th quarter. JPMorgan Chase & Co. now owns 4,268,547 shares of the investment management company’s stock worth $93,439,000 after purchasing an additional 881,450 shares in the last quarter. Finally, Bank of America Corp DE grew its position in shares of Ares Capital by 12.3% during the 4th quarter. Bank of America Corp DE now owns 7,951,926 shares of the investment management company’s stock worth $174,068,000 after purchasing an additional 871,370 shares in the last quarter. Institutional investors own 27.38% of the company’s stock.

Ares Capital Price Performance

ARCC stock opened at $22.38 on Monday. The stock has a market cap of $15.54 billion, a price-to-earnings ratio of 10.92 and a beta of 0.67. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.40 and a quick ratio of 1.40. The company has a 50 day simple moving average of $21.64 and a 200 day simple moving average of $21.94. Ares Capital Corporation has a 1 year low of $18.26 and a 1 year high of $23.84.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings results on Tuesday, April 29th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.54 by ($0.04). Ares Capital had a return on equity of 11.05% and a net margin of 43.50%. The company had revenue of $599.00 million for the quarter, compared to analyst estimates of $769.32 million. During the same quarter last year, the company posted $0.59 earnings per share. The firm’s quarterly revenue was up 4.4% on a year-over-year basis. Research analysts anticipate that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 13th were paid a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 8.58%. The ex-dividend date of this dividend was Friday, June 13th. Ares Capital’s payout ratio is 93.66%.

Wall Street Analyst Weigh In

ARCC has been the subject of several recent research reports. UBS Group cut their price target on Ares Capital from $22.00 to $21.00 and set a “neutral” rating for the company in a research note on Thursday, April 17th. Royal Bank Of Canada cut their target price on Ares Capital from $24.00 to $23.00 and set an “outperform” rating for the company in a research report on Tuesday, May 6th. JPMorgan Chase & Co. reduced their target price on Ares Capital from $24.50 to $22.00 and set an “overweight” rating on the stock in a report on Thursday, April 24th. B. Riley raised Ares Capital to a “hold” rating in a research note on Monday, June 16th. Finally, Keefe, Bruyette & Woods cut their price objective on shares of Ares Capital from $23.00 to $22.00 and set an “outperform” rating for the company in a research report on Tuesday, April 8th. One analyst has rated the stock with a sell rating, three have issued a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $22.00.

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.