MML Investors Services LLC Boosts Stake in Ares Capital Co. (NASDAQ:ARCC)

MML Investors Services LLC grew its position in shares of Ares Capital Co. (NASDAQ:ARCC) by 10.9% during the third quarter, according to its most recent filing with the SEC. The firm owned 73,741 shares of the investment management company’s stock after acquiring an additional 7,236 shares during the period. MML Investors Services LLC’s holdings in Ares Capital were worth $1,544,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Asset Dedication LLC purchased a new stake in shares of Ares Capital in the 2nd quarter worth approximately $26,000. Horizon Financial Services LLC purchased a new stake in shares of Ares Capital in the 3rd quarter worth approximately $28,000. nVerses Capital LLC grew its stake in shares of Ares Capital by 88.9% in the 2nd quarter. nVerses Capital LLC now owns 1,700 shares of the investment management company’s stock worth $35,000 after buying an additional 800 shares during the last quarter. Ridgewood Investments LLC purchased a new stake in shares of Ares Capital in the 2nd quarter worth approximately $42,000. Finally, Blue Trust Inc. grew its stake 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 buying an additional 909 shares during the last quarter. Hedge funds and other institutional investors own 27.38% of the company’s stock.

Ares Capital Price Performance

NASDAQ ARCC opened at $21.30 on Wednesday. The company has a debt-to-equity ratio of 1.06, a current ratio of 1.29 and a quick ratio of 1.29. The stock has a market capitalization of $13.76 billion, a price-to-earnings ratio of 8.19 and a beta of 1.01. Ares Capital Co. has a 1-year low of $19.32 and a 1-year high of $22.43. The business’s fifty day moving average price is $21.65 and its 200-day moving average price is $21.13.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings data on Wednesday, October 30th. The investment management company reported $0.58 EPS for the quarter, missing the consensus estimate of $0.59 by ($0.01). The company had revenue of $755.00 million during the quarter, compared to analysts’ expectations of $770.45 million. Ares Capital had a return on equity of 12.06% and a net margin of 53.71%. The company’s revenue for the quarter was up 15.3% on a year-over-year basis. During the same quarter last year, the company earned $0.59 earnings per share. On average, equities analysts predict that Ares Capital Co. will post 2.36 earnings per share for the current year.

Ares Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 30th. Stockholders of record on Friday, December 13th will be paid a $0.48 dividend. The ex-dividend date of this dividend is Friday, December 13th. This represents a $1.92 annualized dividend and a dividend yield of 9.01%. Ares Capital’s dividend payout ratio (DPR) is 73.85%.

Wall Street Analyst Weigh In

ARCC has been the topic of several recent research reports. B. Riley upped their price target on Ares Capital from $21.00 to $22.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. UBS Group raised Ares Capital to a “hold” rating in a research report on Friday, August 23rd. Wells Fargo & Company raised Ares Capital from an “equal weight” rating to an “overweight” rating in a research report on Thursday, December 12th. Finally, StockNews.com raised Ares Capital from a “sell” rating to a “hold” rating in a research report on Tuesday, November 12th. Three research analysts have rated the stock with a hold rating, six have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, Ares Capital currently has an average rating of “Moderate Buy” and a consensus target price of $22.29.

Ares Capital Company 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.