September 30, 2023 – Foundations Investment Advisors LLC has announced an increase in its ownership stake in Ares Capital Co. (NASDAQ: ARCC) during the second quarter of this year. According to the company’s recent disclosure with the Securities and Exchange Commission, Foundations Investment Advisors LLC now holds 145,199 shares of the investment management company’s stock. This reflects a significant increase of 24.3% after acquiring an additional 28,428 shares during the period. At the end of the second quarter, these holdings were valued at $2,728,000.
In addition to this development, Ares Capital recently declared a quarterly dividend for its shareholders. The dividend payment is scheduled for Friday, September 29th, providing an opportunity for investors to benefit from their holdings. Stockholders who hold positions as of Friday, September 15th will be eligible to receive a $0.48 dividend per share. It is important to note that the ex-dividend date for this particular dividend is set on Thursday, September 14th.
Given its annualized dividend of $1.92 per share and a current dividend yield of 9.78%, Ares Capital demonstrates its commitment towards rewarding its shareholders through regular dividend distributions. Despite having a payout ratio of 116.36%, which exceeds its earnings per share, Ares Capital remains committed to offering attractive dividends.
Ares Capital is an investment management company that specializes in providing financing solutions to middle-market companies and private equity sponsors. As a business development company (BDC), it aims to generate both income and capital appreciation for its shareholders by investing primarily in high-quality performing companies.
This news from Foundations Investment Advisors LLC solidifies their confidence in Ares Capital’s potential for growth and profitability in the market space it operates within. It also reflects positively on Ares Capital’s ability to attract notable investors who recognize the value and potential returns associated with holding its stock.
As of the reference date, September 30, 2023, it is expected that Ares Capital will continue to focus on executing its investment strategy, maintaining prudent risk management practices, and striving to deliver consistent returns to its shareholders. With an increased stake from Foundations Investment Advisors LLC and a commitment to issuing regular dividends, Ares Capital positions itself as an attractive investment opportunity for those seeking stable income and potential capital appreciation in the ever-changing financial landscape.
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Institutional Investors and Hedge Funds Show Confidence in Ares Capital’s Growth Potential
Institutional investors and hedge funds have been actively buying and selling shares of Ares Capital (NASDAQ: ARCC) in recent times. Daymark Wealth Partners LLC, for instance, acquired a new position in the company during the second quarter with a value of approximately $332,000. Similarly, Golden State Equity Partners also purchased a stake in Ares Capital worth around $316,000 in the second quarter.
Allworth Financial LP increased its stake in Ares Capital by 5.6% during the same period and now owns 10,776 shares of the investment management company’s stock valued at $202,000. Fiduciary Alliance LLC joined the bandwagon by acquiring a new position in the second quarter worth approximately $33,000. Moreover, Brown Miller Wealth Management LLC increased its holdings in Ares Capital by 1.2% during the same period.
An astounding 29.32% of Ares Capital’s stock is owned by institutional investors and hedge funds, reinforcing their confidence in the company’s long-term prospects.
Several brokerages have weighed in on ARCC as well. JMP Securities reaffirmed a “market outperform” rating and set a target price of $20.00 on Ares Capital’s shares. Citigroup also raised its price target from $20.00 to $21.00 for ARCC stock on July 26th. StockNews.com initiated coverage on Ares Capital with a “hold” rating while B. Riley raised their price target from $20.50 to $21.00.
Based on Bloomberg data, two analysts have rated the stock as hold while five have assigned it a buy rating. The overall consensus rating for Ares Capital is currently “Moderate Buy” with an average target price of $20.00.
On Friday, September 30th, shares of NASDAQ: ARCC opened at $19.64 – trading within its 1-year low of $16.53 and its 1-year high of $20.17. With a market cap of $10.95 billion, Ares Capital has a debt-to-equity ratio of 1.10, a current ratio of 1.43, and a quick ratio of 1.43. The stock boasts a P/E ratio of 11.90 and has a beta value of 1.00.
Ares Capital recently released its quarterly earnings results on Tuesday, July 25th. The investment management company surpassed the consensus estimate by reporting an EPS (earnings per share) of $0.58 for the quarter, while analysts had expected $0.57 per share—a beat by $0.01.
With a net margin of 36.52% and a return on equity standing at 12.47%, Ares Capital generated revenue worth $634 million during the quarter—outperforming expectations set at $623.26 million.
Sell-side analysts predict that Ares Capital will continue to excel in the coming period, with an estimated EPS forecasted at 2.34 for this year.
Ares Capital’s robust performance in recent months has captured the attention and trust of institutional investors, hedge funds, and several brokerages alike—all pointing towards positive growth potential in the future for this investment management company listed on NASDAQ under the ticker symbol ARCC.
