Synergy Investment Management LLC Makes New Investment in Ares Capital Co. (NASDAQ:ARCC)

Synergy Investment Management LLC acquired a new position in Ares Capital Co. (NASDAQ:ARCC) during the fourth quarter, according to the company in its most recent filing with the SEC. The fund acquired 3,589 shares of the investment management company’s stock, valued at approximately $79,000.

Other institutional investors have also recently added to or reduced their stakes in the company. SG Americas Securities LLC acquired a new position in Ares Capital in the 4th quarter worth $519,000. Round Rock Advisors LLC acquired a new position in Ares Capital in the 4th quarter worth $1,512,000. Chicago Partners Investment Group LLC lifted its holdings in Ares Capital by 5.3% in the 4th quarter. Chicago Partners Investment Group LLC now owns 507,374 shares of the investment management company’s stock worth $11,208,000 after buying an additional 25,347 shares in the last quarter. Franklin Resources Inc. lifted its holdings in Ares Capital by 24.3% in the 3rd quarter. Franklin Resources Inc. now owns 650,163 shares of the investment management company’s stock worth $13,900,000 after buying an additional 127,219 shares in the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. raised its stake in shares of Ares Capital by 4.6% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 885,406 shares of the investment management company’s stock valued at $18,540,000 after purchasing an additional 38,559 shares in the last quarter. Institutional investors and hedge funds own 27.38% of the company’s stock.

Ares Capital Stock Performance

Shares of ARCC opened at $22.78 on Wednesday. The company’s fifty day moving average is $22.86 and its 200-day moving average is $21.84. Ares Capital Co. has a 12 month low of $19.32 and a 12 month high of $23.84. The firm has a market cap of $15.30 billion, a price-to-earnings ratio of 9.30 and a beta of 1.01. The company has a quick ratio of 1.21, a current ratio of 1.21 and a debt-to-equity ratio of 1.03.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings results on Wednesday, February 5th. The investment management company reported $0.55 EPS for the quarter, missing the consensus estimate of $0.58 by ($0.03). Ares Capital had a return on equity of 11.54% and a net margin of 50.90%. Equities analysts expect that Ares Capital Co. will post 2.19 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, March 31st. Investors of record on Friday, March 14th will be issued a $0.48 dividend. The ex-dividend date is Friday, March 14th. This represents a $1.92 annualized dividend and a yield of 8.43%. Ares Capital’s dividend payout ratio (DPR) is presently 78.37%.

Wall Street Analysts Forecast Growth

ARCC has been the topic of a number of recent analyst reports. StockNews.com lowered shares of Ares Capital from a “hold” rating to a “sell” rating in a research note on Friday, February 7th. JPMorgan Chase & Co. upped their target price on shares of Ares Capital from $23.00 to $24.50 and gave the company an “overweight” rating in a research note on Monday, February 3rd. Wells Fargo & Company cut their target price on shares of Ares Capital from $24.00 to $23.00 and set an “overweight” rating on the stock in a research note on Thursday, February 6th. Royal Bank of Canada upped their target price on shares of Ares Capital from $23.00 to $24.00 and gave the company an “outperform” rating in a research note on Friday, February 7th. Finally, Keefe, Bruyette & Woods increased their price objective on shares of Ares Capital from $22.00 to $23.00 and gave the stock an “outperform” rating in a research note on Friday, February 7th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating, seven have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $22.94.

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.