70,000 Shares in Ares Capital Corporation $ARCC Purchased by Eos Management L.P.

Key Points

• Eos Management L.P. established a new position in Ares Capital (NASDAQ:ARCC), buying 70,000 shares in Q4 valued at about $1.416 million.
• Ares paid a $0.48 quarterly dividend (annualized $1.92), implying a 10.1% yield, but its dividend payout ratio is high at 103.23%, which may raise sustainability concerns.
• Company insiders increased holdings—CFO Scott C. Lem bought 5,186 shares and CEO Michael Kort Schnabel bought 12,500 shares—while institutional investors own about 27.38% of the stock.

Eos Management L.P. acquired a new position in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 70,000 shares of the investment management company's stock, valued at approximately $1,416,000.

Several other institutional investors and hedge funds have also recently bought and sold shares of the business. Canal Capital Management LLC raised its stake in Ares Capital by 1.6% during the fourth quarter. Canal Capital Management LLC now owns 32,955 shares of the investment management company's stock worth $667,000 after acquiring an additional 520 shares during the period. BKM Wealth Management LLC raised its stake in Ares Capital by 1.3% during the third quarter. BKM Wealth Management LLC now owns 42,394 shares of the investment management company's stock worth $865,000 after acquiring an additional 525 shares during the period. Perigon Wealth Management LLC raised its stake in Ares Capital by 1.6% during the fourth quarter. Perigon Wealth Management LLC now owns 34,700 shares of the investment management company's stock worth $702,000 after acquiring an additional 547 shares during the period. Balboa Wealth Partners raised its stake in Ares Capital by 1.3% during the third quarter. Balboa Wealth Partners now owns 44,755 shares of the investment management company's stock worth $913,000 after acquiring an additional 559 shares during the period. Finally, Diversify Advisory Services LLC raised its stake in Ares Capital by 2.0% during the fourth quarter. Diversify Advisory Services LLC now owns 28,186 shares of the investment management company's stock worth $589,000 after acquiring an additional 563 shares during the period. Institutional investors and hedge funds own 27.38% of the company's stock.

Ares Capital Trading Up 0.7%

Shares of NASDAQ:ARCC opened at $19.10 on Thursday. The stock has a market capitalization of $13.71 billion, a price-to-earnings ratio of 10.27 and a beta of 0.58. Ares Capital Corporation has a 1-year low of $17.40 and a 1-year high of $23.42. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.70 and a current ratio of 1.70. The company has a 50 day moving average price of $18.57 and a 200 day moving average price of $19.63.

Ares Capital (NASDAQ:ARCC - Get Free Report) last issued its earnings results on Wednesday, February 4th. The investment management company reported $0.50 earnings per share for the quarter, hitting analysts' consensus estimates of $0.50. The firm had revenue of $793.00 million during the quarter, compared to analysts' expectations of $795.20 million. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The firm's revenue for the quarter was up 4.5% compared to the same quarter last year. During the same period last year, the firm posted $0.55 earnings per share. On average, research analysts anticipate that Ares Capital Corporation will post 1.93 EPS for the current fiscal year.

Ares Capital Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Friday, March 13th were given a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 10.1%. The ex-dividend date was Friday, March 13th. Ares Capital's dividend payout ratio is 103.23%.

Analyst Ratings Changes

A number of research analysts have issued reports on ARCC shares. Wall Street Zen lowered shares of Ares Capital from a "hold" rating to a "sell" rating in a research note on Saturday, February 7th. Citizens Jmp cut their price target on Ares Capital from $23.00 to $22.00 and set a "market outperform" rating on the stock in a report on Wednesday. B. Riley Financial reaffirmed a "buy" rating on shares of Ares Capital in a report on Monday, February 9th. Royal Bank Of Canada cut their price target on Ares Capital from $23.00 to $22.00 and set an "outperform" rating on the stock in a report on Monday, February 9th. Finally, UBS Group cut their price target on Ares Capital from $21.00 to $19.00 and set a "neutral" rating on the stock in a report on Friday, March 13th. Seven investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $21.13.

Insider Activity at Ares Capital

In other news, CFO Scott C. Lem purchased 5,186 shares of Ares Capital stock in a transaction that occurred on Friday, February 6th. The stock was acquired at an average price of $19.29 per share, for a total transaction of $100,037.94. Following the transaction, the chief financial officer owned 39,463 shares in the company, valued at $761,241.27. The trade was a 15.13% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Michael Kort Schnabel purchased 12,500 shares of Ares Capital stock in a transaction that occurred on Thursday, February 5th. The stock was purchased at an average price of $19.13 per share, with a total value of $239,125.00. Following the transaction, the chief executive officer owned 40,500 shares in the company, valued at $774,765. This represents a 44.64% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.49% of the stock is currently owned by corporate insiders.

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.

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