New South Capital Management Inc. Decreases Stake in Ares Capital Co. (NASDAQ:ARCC)

New South Capital Management Inc. reduced its position in Ares Capital Co. (NASDAQ:ARCC) by 0.1% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 547,403 shares of the investment management company’s stock after selling 500 shares during the period. New South Capital Management Inc. owned 0.08% of Ares Capital worth $11,463,000 at the end of the most recent quarter.

Other hedge funds also recently made changes to their positions in the company. Jamison Private Wealth Management Inc. lifted its position in shares of Ares Capital by 62.7% in the second quarter. Jamison Private Wealth Management Inc. now owns 1,233 shares of the investment management company’s stock worth $26,000 after buying an additional 475 shares in the last quarter. Asset Dedication LLC purchased a new stake in Ares Capital during the second quarter valued at approximately $26,000. Hobbs Group Advisors LLC purchased a new stake in Ares Capital during the second quarter valued at approximately $32,000. nVerses Capital LLC raised its position in Ares Capital by 88.9% during the second quarter. nVerses Capital LLC now owns 1,700 shares of the investment management company’s stock valued at $35,000 after purchasing an additional 800 shares during the period. Finally, Ridgewood Investments LLC purchased a new stake in Ares Capital during the second quarter valued at approximately $42,000. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on ARCC shares. JMP Securities upped their price objective on Ares Capital from $21.00 to $22.00 and gave the company a “market outperform” rating in a research report on Tuesday, July 30th. B. Riley increased their price target on Ares Capital from $21.00 to $22.00 and gave the stock a “neutral” rating in a report on Thursday, October 31st. Compass Point upgraded Ares Capital to a “strong-buy” rating in a report on Tuesday, July 30th. StockNews.com cut Ares Capital from a “hold” rating to a “sell” rating in a research note on Monday, November 4th. Finally, UBS Group raised Ares Capital to a “hold” rating in a research note on Friday, August 23rd. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, five have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, Ares Capital currently has an average rating of “Moderate Buy” and a consensus price target of $21.86.

Ares Capital Stock Down 0.2 %

Shares of Ares Capital stock traded down $0.04 during trading on Tuesday, reaching $21.55. The company’s stock had a trading volume of 182,158 shares, compared to its average volume of 3,370,400. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 1.06. The company has a market cap of $13.92 billion, a price-to-earnings ratio of 8.30 and a beta of 1.01. Ares Capital Co. has a 1-year low of $19.32 and a 1-year high of $22.05. The company has a 50-day simple moving average of $21.03 and a two-hundred day simple moving average of $20.98.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings data on Wednesday, October 30th. The investment management company reported $0.58 earnings per share for the quarter, missing analysts’ consensus estimates of $0.59 by ($0.01). The business had revenue of $755.00 million during the quarter, compared to analyst estimates of $770.45 million. Ares Capital had a return on equity of 12.06% and a net margin of 53.71%. The firm’s revenue for the quarter was up 15.3% compared to the same quarter last year. During the same period in the previous year, the business earned $0.59 EPS. As a group, equities analysts forecast that Ares Capital Co. will post 2.36 earnings per share for the current year.

Ares Capital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, December 30th. Investors of record on Friday, December 13th will be paid a $0.48 dividend. The ex-dividend date is Friday, December 13th. This represents a $1.92 dividend on an annualized basis and a yield of 8.91%. Ares Capital’s dividend payout ratio (DPR) is 73.85%.

Ares Capital Profile

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.