LFG Wealth Partners LLC Raises Position in Ares Capital Corporation $ARCC

LFG Wealth Partners LLC lifted its holdings in shares of Ares Capital Corporation (NASDAQ:ARCC) by 34.8% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 164,037 shares of the investment management company’s stock after purchasing an additional 42,384 shares during the quarter. Ares Capital comprises about 1.8% of LFG Wealth Partners LLC’s investment portfolio, making the stock its 15th biggest position. LFG Wealth Partners LLC’s holdings in Ares Capital were worth $2,956,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also made changes to their positions in the business. Morgan Stanley lifted its position in Ares Capital by 2.0% during the fourth quarter. Morgan Stanley now owns 17,558,581 shares of the investment management company’s stock worth $355,210,000 after buying an additional 341,578 shares during the period. UBS Group AG grew its holdings in Ares Capital by 41.8% in the 4th quarter. UBS Group AG now owns 11,201,905 shares of the investment management company’s stock valued at $226,615,000 after buying an additional 3,301,890 shares during the period. Strs Ohio purchased a new stake in Ares Capital in the 1st quarter valued at about $189,210,000. Bank of America Corp DE increased its stake in shares of Ares Capital by 16.0% during the 1st quarter. Bank of America Corp DE now owns 9,135,454 shares of the investment management company’s stock valued at $164,621,000 after acquiring an additional 1,259,230 shares during the last quarter. Finally, Legal & General Group Plc increased its stake in shares of Ares Capital by 16.4% during the 4th quarter. Legal & General Group Plc now owns 5,408,067 shares of the investment management company’s stock valued at $109,432,000 after acquiring an additional 761,838 shares during the last quarter. Hedge funds and other institutional investors own 27.38% of the company’s stock.

Ares Capital Stock Performance

NASDAQ ARCC opened at $18.76 on Monday. The firm has a market capitalization of $13.47 billion, a P/E ratio of 13.90 and a beta of 0.56. Ares Capital Corporation has a 1-year low of $17.40 and a 1-year high of $22.85. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.28 and a quick ratio of 1.28. The business’s 50-day simple moving average is $18.67 and its 200-day simple moving average is $18.89.

Ares Capital (NASDAQ:ARCC) last posted its earnings results on Wednesday, July 29th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.47. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. The firm had revenue of $768.00 million during the quarter, compared to the consensus estimate of $770.19 million. During the same quarter in the prior year, the company earned $0.50 EPS. Equities analysts predict that Ares Capital Corporation will post 1.9 EPS for the current year.

Ares Capital Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be given a $0.48 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.92 annualized dividend and a dividend yield of 10.2%. Ares Capital’s dividend payout ratio is presently 142.22%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the stock. Wells Fargo & Company restated an “equal weight” rating and issued a $19.00 target price (down from $20.00) on shares of Ares Capital in a report on Friday, June 12th. Wall Street Zen downgraded shares of Ares Capital from a “hold” rating to a “sell” rating in a research note on Sunday. Royal Bank Of Canada decreased their price target on shares of Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Wednesday, April 29th. Keefe, Bruyette & Woods decreased their price target on shares of Ares Capital from $21.00 to $20.00 and set an “outperform” rating on the stock in a report on Thursday. Finally, JPMorgan Chase & Co. lowered their price objective on shares of Ares Capital from $19.00 to $18.50 and set an “overweight” rating for the company in a research note on Thursday, July 2nd. Eight research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $20.40.

Ares Capital News Summary

Here are the key news stories impacting Ares Capital this week:

• Positive Sentiment: Second-quarter earnings held up, with adjusted EPS of $0.47 matching estimates and investment income remaining resilient. Management also highlighted ARCC’s scale, improving lending terms and balance-sheet flexibility despite a slower transaction market. Ares Capital’s Q2 Earnings Call Highlights Market Strength
• Positive Sentiment: ARCC declared a quarterly dividend of $0.48 per share, payable September 30 to shareholders of record September 15. The roughly 10.2% annualized yield and 17-year dividend streak support the stock’s appeal to income-focused investors. Ares Capital Just Extended Its Dividend Streak to 17 Years
• Positive Sentiment: Truist maintained a “buy” rating with a $21 price target, while Keefe, Bruyette & Woods retained an “outperform” rating with a $20 target, indicating analysts still see potential upside from current levels. Analyst Price Target Updates
• Neutral Sentiment: Broader private-credit results remained resilient, and strong fundraising across the Ares platform points to continued institutional demand. However, elevated defaults, retail redemptions and liquidity concerns remain important industry risks. Private Credit Roundup
• Negative Sentiment: Five ARCC borrowers were moved to non-accrual status during the second quarter. The largest was an $84.6 million subordinated loan to AmeriVet Veterinary Partners, raising concerns about portfolio credit quality and potential pressure on net asset value. Ares BDC Moves Five Borrowers to Non-Accrual
• Negative Sentiment: Although quarterly revenue was close to expectations, year-over-year expenses increased and unrealized losses weighed on results. Both Truist and KBW lowered their price targets, signaling a more cautious outlook even while keeping positive ratings. ARCC Stock Dips as Q2 Earnings Meet Estimates

Ares Capital Company 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.