Delta Financial Group Inc. Grows Stock Holdings in Ares Capital Co. (NASDAQ:ARCC)

Delta Financial Group Inc. increased its stake in Ares Capital Co. (NASDAQ:ARCC) by 6.6% during the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 31,112 shares of the investment management company’s stock after buying an additional 1,936 shares during the period. Delta Financial Group Inc.’s holdings in Ares Capital were worth $681,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Horizon Financial Services LLC bought a new stake in Ares Capital in the third quarter worth $28,000. Blue Trust Inc. raised its position in shares of Ares Capital by 56.8% in the 3rd quarter. Blue Trust Inc. now owns 2,510 shares of the investment management company’s stock worth $52,000 after purchasing an additional 909 shares during the last quarter. Montag A & Associates Inc. boosted its stake in Ares Capital by 92.6% in the 4th quarter. Montag A & Associates Inc. now owns 2,889 shares of the investment management company’s stock worth $63,000 after purchasing an additional 1,389 shares in the last quarter. Farmers & Merchants Investments Inc. grew its position in Ares Capital by 200.0% during the 4th quarter. Farmers & Merchants Investments Inc. now owns 3,000 shares of the investment management company’s stock valued at $66,000 after purchasing an additional 2,000 shares during the last quarter. Finally, Quarry LP bought a new stake in Ares Capital during the 3rd quarter valued at about $67,000. Hedge funds and other institutional investors own 27.38% of the company’s stock.

Ares Capital Stock Performance

Shares of ARCC opened at $23.30 on Friday. Ares Capital Co. has a one year low of $19.32 and a one year high of $23.84. The business has a fifty day moving average of $22.61 and a 200 day moving average of $21.70. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.21 and a quick ratio of 1.21. The firm has a market capitalization of $15.64 billion, a P/E ratio of 9.51 and a beta of 1.01.

Ares Capital (NASDAQ:ARCC) last released 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 net margin of 50.90% and a return on equity of 11.54%. As a group, sell-side analysts anticipate that Ares Capital Co. will post 2.19 EPS for the current year.

Ares Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 31st. Shareholders of record on Friday, March 14th will be given a $0.48 dividend. The ex-dividend date is Friday, March 14th. This represents a $1.92 annualized dividend and a yield of 8.24%. Ares Capital’s payout ratio is presently 78.37%.

Wall Street Analyst Weigh In

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

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.