617,542 Ares Capital Corporation $ARCC Shares Sold by Allen Investment Management LLC

Key Points

• Allen Investment Management reduced its Ares Capital stake by 25.3%, selling 617,542 shares in the third quarter. It retained 1.82 million shares, valued at about $34.8 million.
• Analyst sentiment remains generally positive: nine analysts rate ARCC a Buy and two a Hold, giving it a “Moderate Buy” consensus and an average price target of $20.39.
• Ares Capital reported quarterly EPS of $0.46, below the $0.48 consensus, while revenue fell 2.4% year over year. It announced a $0.48 quarterly dividend, equal to a 10% annualized yield at the article’s cited share price.

Allen Investment Management LLC cut its position in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 25.3% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,824,043 shares of the investment management company's stock after selling 617,542 shares during the period. Allen Investment Management LLC owned 0.25% of Ares Capital worth $34,839,000 at the end of the most recent quarter.

Several other institutional investors also recently modified their holdings of the company. Fortitude Family Office LLC boosted its stake in shares of Ares Capital by 145.2% during the 3rd quarter. Fortitude Family Office LLC now owns 1,297 shares of the investment management company's stock worth $25,000 after acquiring an additional 768 shares during the period. Orion Capital Management LLC acquired a new position in shares of Ares Capital during the 2nd quarter worth approximately $25,000. Continuum Advisory LLC bought a new stake in Ares Capital in the 2nd quarter valued at $30,000. TOP Private Wealth LLC. bought a new stake in Ares Capital in the 2nd quarter valued at $31,000. Finally, Heritage Family Offices LLP acquired a new stake in Ares Capital during the 3rd quarter valued at $32,000. 27.38% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on ARCC shares. Citigroup reaffirmed a "market outperform" rating on shares of Ares Capital in a research report on Wednesday, October 28th. Wall Street Zen lowered shares of Ares Capital from a "hold" rating to a "sell" rating in a research report on Saturday, October 31st. Keefe, Bruyette & Woods cut their target price on shares of Ares Capital from $21.00 to $20.00 and set an "outperform" rating for the company in a research note on Thursday, July 30th. UBS Group upgraded shares of Ares Capital from a "neutral" rating to a "buy" rating and set a $21.00 target price for the company in a research note on Thursday, October 29th. Finally, Truist Financial reduced their target price on shares of Ares Capital from $22.00 to $21.00 and set a "buy" rating for the company in a report on Thursday, July 30th. Nine equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $20.39.

Ares Capital Stock Performance

ARCC opened at $19.13 on Friday. The business has a fifty day simple moving average of $19.16 and a 200 day simple moving average of $19.00. The company has a market capitalization of $13.82 billion, a PE ratio of 15.68 and a beta of 0.60. Ares Capital Corporation has a 1 year low of $17.40 and a 1 year high of $21.14. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.00 and a quick ratio of 1.00.

Ares Capital (NASDAQ:ARCC - Get Free Report) last issued its quarterly earnings data on Tuesday, October 27th. The investment management company reported $0.46 EPS for the quarter, missing analysts' consensus estimates of $0.48 by ($0.02). The firm had revenue of $763.00 million during the quarter, compared to analyst estimates of $776.34 million. Ares Capital had a net margin of 28.34% and a return on equity of 9.72%. The business's quarterly revenue was down 2.4% compared to the same quarter last year. During the same period in the prior year, the company earned $0.50 earnings per share. Research analysts expect that Ares Capital Corporation will post 1.88 EPS for the current year.

Ares Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 29th. Stockholders of record on Tuesday, December 15th will be given a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 10.0%. The ex-dividend date of this dividend is Tuesday, December 15th. Ares Capital's payout ratio is presently 157.38%.

About Ares Capital

Ares Capital Corporation is a business development company that provides financing to U.S. middle-market companies, including businesses backed by private equity firms. It is externally managed by Ares Capital Management, an affiliate of Ares Management Corporation.

The company invests primarily in debt, including first-lien and second-lien loans and subordinated debt, and may also make equity investments. Its financing supports a range of business needs, such as acquisitions, growth, and refinancing.

Founded in 2004, Ares Capital focuses mainly on companies in the United States.

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