Sound Income Strategies LLC Boosts Position in Ares Capital Corporation $ARCC

Sound Income Strategies LLC lifted its stake in Ares Capital Corporation (NASDAQ:ARCC) by 1.8% during the 1st quarter, Holdings Channel reports. The firm owned 2,663,571 shares of the investment management company’s stock after acquiring an additional 46,782 shares during the period. Ares Capital makes up 2.3% of Sound Income Strategies LLC’s holdings, making the stock its 2nd biggest holding. Sound Income Strategies LLC’s holdings in Ares Capital were worth $47,225,000 at the end of the most recent quarter.

A number of other institutional investors have also made changes to their positions in ARCC. Palladiem LLC acquired a new position in Ares Capital in the fourth quarter valued at about $26,000. SWAN Capital LLC acquired a new position in shares of Ares Capital during the 3rd quarter worth about $27,000. Sankala Group LLC bought a new stake in shares of Ares Capital in the 4th quarter valued at about $28,000. Core Wealth Advisors LLC bought a new stake in shares of Ares Capital in the 4th quarter valued at about $33,000. Finally, Quarry LP acquired a new stake in shares of Ares Capital in the 3rd quarter valued at approximately $33,000. 27.38% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

ARCC has been the topic of several recent analyst reports. JPMorgan Chase & Co. reduced their price objective on shares of Ares Capital from $19.00 to $18.50 and set an “overweight” rating on the stock in a research note on Thursday. B. Riley Financial cut their target price on shares of Ares Capital from $22.00 to $20.00 and set a “buy” rating on the stock in a report on Wednesday, April 29th. Wells Fargo & Company reissued an “equal weight” rating and set a $19.00 price target (down from $20.00) on shares of Ares Capital in a research report on Friday, June 12th. Citizens Jmp decreased their price target on shares of Ares Capital from $23.00 to $22.00 and set a “market outperform” rating for the company in a report on Wednesday, April 22nd. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Ares Capital in a research report on Tuesday, June 9th. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $20.60.

Ares Capital Price Performance

NASDAQ ARCC opened at $18.73 on Friday. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.40 and a current ratio of 1.40. The stock has a market cap of $13.45 billion, a price-to-earnings ratio of 11.49 and a beta of 0.56. The business has a 50 day simple moving average of $18.70 and a 200 day simple moving average of $19.11. Ares Capital Corporation has a 52-week low of $17.40 and a 52-week high of $23.42.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings results on Tuesday, April 28th. The investment management company reported $0.47 earnings per share 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 during the quarter, compared to the consensus estimate of $778.00 million. During the same period in the previous year, the firm posted $0.50 EPS. The business’s quarterly revenue was up 4.2% compared to the same quarter last year. Analysts anticipate that Ares Capital Corporation will post 1.91 earnings per share for the current fiscal year.

Ares Capital Dividend Announcement

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