Ares Capital Corporation $ARCC is Vista Finance LLC's 6th Largest Position

Key Points

• Vista Finance LLC cut its stake in Ares Capital by 19.9% in Q4 to 485,910 shares, making ARCC its 6th-largest holding and representing about $9.83 million (0.07% of the company).
• Ares Capital pays a quarterly dividend of $0.48 (annualized $1.92), implying a 10.1% yield with a payout ratio of roughly 103%.
• Analysts hold a consensus rating of “Moderate Buy” with a consensus price target of $21.25, although several firms (RBC, UBS, JPMorgan, Wells Fargo) have recently trimmed their price targets.

Vista Finance LLC decreased its holdings in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 19.9% in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 485,910 shares of the investment management company's stock after selling 120,835 shares during the quarter. Ares Capital accounts for about 6.5% of Vista Finance LLC's holdings, making the stock its 6th biggest holding. Vista Finance LLC owned about 0.07% of Ares Capital worth $9,830,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also made changes to their positions in the business. Partners Group Holding AG lifted its stake in Ares Capital by 4.8% in 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 acquiring an additional 80,885 shares during the last quarter. International Assets Investment Management LLC lifted its stake in Ares Capital by 33.9% in the third quarter. International Assets Investment Management LLC now owns 275,891 shares of the investment management company's stock worth $5,557,000 after acquiring an additional 69,844 shares during the last quarter. Investment Partners Asset Management Inc. purchased a new position in Ares Capital in the fourth quarter worth 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. Finally, 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. Hedge funds and other institutional investors own 27.38% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on ARCC. Royal Bank Of Canada decreased their price target on shares of Ares Capital from $23.00 to $22.00 and set an "outperform" rating for the company in a research note on Monday, February 9th. UBS Group decreased their price target on shares of Ares Capital from $21.00 to $19.00 and set a "neutral" rating for the company in a research note on Friday, March 13th. JPMorgan Chase & Co. decreased their price target on shares of Ares Capital from $22.00 to $19.00 and set an "overweight" rating for the company in a research note on Friday, March 13th. B. Riley Financial reiterated a "buy" rating on shares of Ares Capital in a research note on Monday, February 9th. Finally, Wells Fargo & Company decreased their price target on shares of Ares Capital from $21.00 to $20.00 and set an "overweight" rating for the company in a research note on Thursday, February 5th. Seven investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $21.25.

Ares Capital Price Performance

Shares of NASDAQ:ARCC opened at $19.09 on Monday. The company has a market capitalization of $13.71 billion, a PE ratio of 10.26 and a beta of 0.58. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.12. Ares Capital Corporation has a twelve month low of $17.40 and a twelve month high of $23.42. The firm has a 50 day simple moving average of $18.62 and a 200-day simple moving average of $19.66.

Ares Capital (NASDAQ:ARCC - Get Free Report) last issued its quarterly earnings data on Wednesday, February 4th. The investment management company reported $0.50 earnings per share for the quarter, hitting the consensus estimate of $0.50. The business had revenue of $793.00 million during the quarter, compared to the consensus estimate of $795.20 million. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The company's revenue was up 4.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.55 EPS. On average, equities analysts predict that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th were given a dividend of $0.48 per share. 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 payout ratio is currently 103.23%.

Insider Activity at Ares Capital

In related news, CFO Scott C. Lem acquired 5,186 shares of Ares Capital stock in a transaction dated 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 of the company's stock, valued at $761,241.27. This represents a 15.13% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Michael Kort Schnabel acquired 12,500 shares of Ares Capital stock in a transaction dated Thursday, February 5th. The shares were bought at an average price of $19.13 per share, with a total value of $239,125.00. Following the transaction, the chief executive officer directly owned 40,500 shares in the company, valued at approximately $774,765. The trade was 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 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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