Clearbridge Investments LLC Acquires 133,200 Shares of Ares Capital Co. (NASDAQ:ARCC)

Clearbridge Investments LLC grew its stake in Ares Capital Co. (NASDAQ:ARCC) by 10.5% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,399,012 shares of the investment management company’s stock after acquiring an additional 133,200 shares during the period. Clearbridge Investments LLC owned 0.21% of Ares Capital worth $30,624,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also modified their holdings of the company. SG Americas Securities LLC acquired a new position in Ares Capital during the fourth quarter valued at approximately $519,000. Round Rock Advisors LLC acquired a new stake in shares of Ares Capital in the 4th quarter valued at approximately $1,512,000. Chicago Partners Investment Group LLC grew its stake in shares of Ares Capital by 5.3% in the fourth quarter. Chicago Partners Investment Group LLC now owns 507,374 shares of the investment management company’s stock valued at $11,208,000 after buying an additional 25,347 shares in the last quarter. Franklin Resources Inc. increased its holdings in Ares Capital by 24.3% during the third 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 during the last quarter. Finally, US Bancorp DE raised its position in Ares Capital by 4.7% during the fourth quarter. US Bancorp DE now owns 43,056 shares of the investment management company’s stock worth $942,000 after acquiring an additional 1,945 shares in the last quarter. Institutional investors and hedge funds own 27.38% of the company’s stock.

Ares Capital Price Performance

Shares of Ares Capital stock opened at $22.29 on Wednesday. The company has a quick ratio of 1.21, a current ratio of 1.21 and a debt-to-equity ratio of 1.03. The stock has a market capitalization of $15.26 billion, a price-to-earnings ratio of 9.10 and a beta of 1.00. Ares Capital Co. has a twelve month low of $19.32 and a twelve month high of $23.84. The company has a 50-day simple moving average of $22.76 and a two-hundred day simple moving average of $22.01.

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

Ares Capital Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, March 31st. Investors of record on Friday, March 14th were given a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 8.61%. The ex-dividend date was Friday, March 14th. Ares Capital’s payout ratio is currently 78.37%.

Wall Street Analysts Forecast Growth

ARCC has been the subject of a number of analyst reports. StockNews.com downgraded shares of Ares Capital from a “hold” rating to a “sell” rating in a research report on Friday, February 7th. JPMorgan Chase & Co. lifted their price target on Ares Capital from $23.00 to $24.50 and gave the stock an “overweight” rating in a report on Monday, February 3rd. Keefe, Bruyette & Woods upped their price objective on Ares Capital from $22.00 to $23.00 and gave the company an “outperform” rating in a research note on Friday, February 7th. Royal Bank of Canada lifted their target price on Ares Capital from $23.00 to $24.00 and gave the stock an “outperform” rating in a research note on Friday, February 7th. Finally, Raymond James cut Ares Capital from an “outperform” rating to a “market perform” rating in a research note on Thursday, February 6th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target 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.