AA Financial Advisors LLC Grows Stock Holdings in Ares Capital Corporation $ARCC

Key Points

• AA Financial Advisors LLC boosted its Ares Capital stake by 130.7% in the first quarter, adding 84,100 shares to bring its total holding to 148,428 shares worth about $2.68 million.
• Ares Capital reported Q1 earnings of $0.47 per share, slightly below estimates of $0.48, while revenue came in at $763 million versus expectations of $778 million.
• The company declared a quarterly dividend of $0.48 per share, translating to an annualized yield of 10.7%, though its payout ratio is elevated at 117.79%.

AA Financial Advisors LLC increased its position in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 130.7% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 148,428 shares of the investment management company's stock after acquiring an additional 84,100 shares during the period. AA Financial Advisors LLC's holdings in Ares Capital were worth $2,675,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the company. Partners Group Holding AG grew its position in shares of Ares Capital by 4.8% during the third quarter. Partners Group Holding AG now owns 1,767,154 shares of the investment management company's stock worth $36,068,000 after buying an additional 80,885 shares in the last quarter. Investment Partners Asset Management Inc. acquired a new stake in Ares Capital in the fourth quarter valued at approximately $1,314,000. Prevail Innovative Wealth Advisors LLC purchased a new position in Ares Capital in the third quarter worth approximately $1,430,000. Sound Income Strategies LLC lifted its stake in Ares Capital by 5.6% in the fourth quarter. Sound Income Strategies LLC now owns 2,616,789 shares of the investment management company's stock worth $54,691,000 after acquiring an additional 138,857 shares during the last quarter. Finally, Tectonic Advisors LLC grew its holdings in Ares Capital by 10.8% during the 4th quarter. Tectonic Advisors LLC now owns 662,533 shares of the investment management company's stock worth $13,403,000 after acquiring an additional 64,491 shares in the last quarter. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

Ares Capital Stock Performance

Shares of ARCC opened at $17.99 on Friday. The stock has a market capitalization of $12.92 billion, a P/E ratio of 11.04 and a beta of 0.56. The company's fifty day moving average is $18.74 and its two-hundred day moving average is $19.20. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.40 and a current ratio of 1.40. Ares Capital Corporation has a 1 year low of $17.40 and a 1 year high of $23.42.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.48 by ($0.01). Ares Capital had a return on equity of 9.85% and a net margin of 37.30%.The firm had revenue of $763.00 million for the quarter, compared to analysts' expectations of $778.00 million. During the same period in the prior year, the company earned $0.50 earnings per share. The company's revenue for the quarter was up 4.2% on a year-over-year basis. On average, sell-side analysts predict that Ares Capital Corporation will post 1.91 earnings per share for the current year.

Ares Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be given a $0.48 dividend. The ex-dividend date is Monday, June 15th. This represents a $1.92 annualized dividend and a yield of 10.7%. Ares Capital's dividend payout ratio is presently 117.79%.

Analyst Ratings Changes

ARCC has been the topic of a number of recent analyst reports. B. Riley Financial dropped their price objective on shares of Ares Capital from $22.00 to $20.00 and set a "buy" rating on the stock in a research report on Wednesday, April 29th. Truist Financial decreased their price objective on shares of Ares Capital from $23.00 to $22.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. Citizens Jmp lowered their target price on shares of Ares Capital from $23.00 to $22.00 and set a "market outperform" rating for the company in a research note on Wednesday, April 22nd. Keefe, Bruyette & Woods dropped their target price on Ares Capital from $22.00 to $21.00 and set an "outperform" rating on the stock in a report on Thursday, April 16th. Finally, JPMorgan Chase & Co. cut their price target on Ares Capital from $22.00 to $19.00 and set an "overweight" rating on the stock in a research note on Friday, March 13th. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $20.65.

Ares Capital 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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