SRS Capital Advisors Inc. Purchases New Stake in Ares Capital Co. (NASDAQ:ARCC)

SRS Capital Advisors Inc. acquired a new position in shares of Ares Capital Co. (NASDAQ:ARCC) during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 2,742 shares of the investment management company’s stock, valued at approximately $60,000.

A number of other hedge funds have also recently added to or reduced their stakes in ARCC. Hanover Advisors Inc. bought a new position in shares of Ares Capital in the 4th quarter worth about $221,000. Xcel Wealth Management LLC raised its stake in Ares Capital by 4.5% during the fourth quarter. Xcel Wealth Management LLC now owns 16,350 shares of the investment management company’s stock worth $358,000 after acquiring an additional 700 shares during the period. US Bancorp DE lifted its holdings in Ares Capital by 4.7% in 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 during the last quarter. Sage Investment Counsel LLC acquired a new position in Ares Capital in the fourth quarter valued at approximately $293,000. Finally, SVB Wealth LLC bought a new position in shares of Ares Capital during the fourth quarter valued at approximately $230,000. Institutional investors and hedge funds own 27.38% of the company’s stock.

Wall Street Analysts Forecast Growth

ARCC has been the topic of several recent research reports. Wells Fargo & Company cut their price target on Ares Capital from $24.00 to $23.00 and set an “overweight” rating on the stock in a report on Thursday, February 6th. Royal Bank of Canada upped their price target on shares of Ares Capital from $23.00 to $24.00 and gave the stock an “outperform” rating in a research report on Friday, February 7th. Raymond James downgraded shares of Ares Capital from an “outperform” rating to a “market perform” rating in a research report on Thursday, February 6th. JPMorgan Chase & Co. upped their target price on shares of Ares Capital from $23.00 to $24.50 and gave the stock an “overweight” rating in a research report on Monday, February 3rd. Finally, StockNews.com cut Ares Capital from a “hold” rating to a “sell” rating in a report on Friday, February 7th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating, seven have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $22.94.

Ares Capital Stock Performance

ARCC opened at $22.33 on Friday. Ares Capital Co. has a 1-year low of $19.32 and a 1-year high of $23.84. The company has a market capitalization of $14.99 billion, a price-to-earnings ratio of 9.11 and a beta of 1.00. The business has a 50 day moving average price of $22.88 and a two-hundred day moving average price of $21.85. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.21 and a quick ratio of 1.21.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings data on Wednesday, February 5th. The investment management company reported $0.55 earnings per share 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%. Research analysts predict that Ares Capital Co. will post 2.19 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, March 31st. Stockholders of record on Friday, March 14th will be paid a $0.48 dividend. The ex-dividend date is Friday, March 14th. This represents a $1.92 annualized dividend and a dividend yield of 8.60%. Ares Capital’s dividend payout ratio is currently 78.37%.

About Ares Capital

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.