Hsbc Holdings PLC Makes New Investment in Ares Capital Corporation $ARCC

Hsbc Holdings PLC acquired a new stake in shares of Ares Capital Corporation (NASDAQ:ARCC) during the 2nd quarter, HoldingsChannel reports. The fund acquired 66,100 shares of the investment management company’s stock, valued at approximately $1,225,000.

Several other institutional investors have also modified their holdings of the stock. Palladiem LLC purchased a new stake in shares of Ares Capital during the fourth quarter worth about $26,000. SWAN Capital LLC purchased a new position in Ares Capital in the 3rd quarter valued at about $27,000. Sankala Group LLC purchased a new position in Ares Capital in the 4th quarter valued at about $28,000. Core Wealth Advisors LLC acquired a new stake in Ares Capital in the 4th quarter worth about $33,000. Finally, Quarry LP acquired a new stake in Ares Capital in the 3rd quarter worth about $33,000. Institutional investors and hedge funds own 27.38% of the company’s stock.

Ares Capital Stock Performance

NASDAQ ARCC opened at $20.07 on Tuesday. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.28 and a current ratio of 1.28. The stock’s fifty day moving average is $19.14 and its two-hundred day moving average is $18.84. The firm has a market capitalization of $14.41 billion, a P/E ratio of 14.87 and a beta of 0.56. Ares Capital Corporation has a fifty-two week low of $17.40 and a fifty-two week high of $22.51.

Ares Capital (NASDAQ:ARCC) last issued 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 return on equity of 9.80% and a net margin of 30.91%.The business had revenue of $768.00 million during the quarter, compared to the consensus estimate of $770.19 million. During the same period last year, the company earned $0.50 EPS. On average, research analysts anticipate that Ares Capital Corporation will post 1.91 earnings per share for the current year.

Ares Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be issued a $0.48 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.6%. Ares Capital’s dividend payout ratio is currently 142.22%.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Ares Capital in a research note on Tuesday, June 9th. Keefe, Bruyette & Woods lowered their price target on Ares Capital from $21.00 to $20.00 and set an “outperform” rating on the stock in a research note on Thursday, July 30th. Wall Street Zen lowered Ares Capital from a “hold” rating to a “sell” rating in a research note on Sunday, August 2nd. JPMorgan Chase & Co. dropped their price target on Ares Capital from $19.00 to $18.50 and set an “overweight” rating for the company in a research report on Thursday, July 2nd. Finally, Wells Fargo & Company reissued an “equal weight” rating and issued a $19.00 price objective (down from $20.00) on shares of Ares Capital in a research note on Friday, June 12th. Eight equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $20.40.

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.