Ares Capital stock trades below net asset value amid portfolio changes

Ares Capital, the biggest publicly traded business development company, is currently selling below its net asset value per share. Its stock trades at around $18.50 to $18.97, while the value of its underlying assets per share is between $19.35 and $20.01. This means buyers are paying roughly 4 to 5 percent less than the assets are worth. Ares Capital usually trades above this value, so the current discount is unusual. The company invests in medium-sized private businesses and pays shareholders a quarterly dividend of $0.48 per share. Its net income per share is $0.57, which is higher than the dividend. The company also holds about $1.26 per share in taxable income that it has not yet paid out.