Ares Capital Corporation $ARCC Position Cut by Atria Wealth Solutions Inc.

Key Points

• Atria Wealth Solutions Inc. reduced its stake in Ares Capital Corporation by 74.0%, bringing its holdings down to 37,713 shares worth approximately $831,000.
• Wall Street analysts have positive projections for Ares Capital, with multiple firms increasing their price targets to $23.00 and maintaining an "outperform" rating.
• Ares Capital recently announced a quarterly dividend of $0.48, translating to an annualized dividend yield of 9.8% with a payout ratio of 93.66%.

Atria Wealth Solutions Inc. trimmed its holdings in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 74.0% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 37,713 shares of the investment management company's stock after selling 107,498 shares during the quarter. Atria Wealth Solutions Inc.'s holdings in Ares Capital were worth $831,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Aurora Private Wealth Inc. boosted its stake in Ares Capital by 1.5% during the 2nd quarter. Aurora Private Wealth Inc. now owns 28,983 shares of the investment management company's stock valued at $636,000 after purchasing an additional 436 shares in the last quarter. Community Trust & Investment Co. boosted its stake in Ares Capital by 0.3% during the 2nd quarter. Community Trust & Investment Co. now owns 150,072 shares of the investment management company's stock valued at $3,296,000 after purchasing an additional 454 shares in the last quarter. Prostatis Group LLC boosted its stake in Ares Capital by 2.1% during the 1st quarter. Prostatis Group LLC now owns 21,768 shares of the investment management company's stock valued at $482,000 after purchasing an additional 457 shares in the last quarter. BankPlus Wealth Management LLC boosted its stake in Ares Capital by 2.5% during the 1st quarter. BankPlus Wealth Management LLC now owns 19,809 shares of the investment management company's stock valued at $439,000 after purchasing an additional 492 shares in the last quarter. Finally, Fiduciary Alliance LLC boosted its stake in Ares Capital by 3.1% during the 2nd quarter. Fiduciary Alliance LLC now owns 17,236 shares of the investment management company's stock valued at $379,000 after purchasing an additional 516 shares in the last quarter. 27.38% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

ARCC has been the subject of a number of research reports. Keefe, Bruyette & Woods increased their price target on Ares Capital from $22.00 to $23.00 and gave the company an "outperform" rating in a research note on Wednesday, July 30th. Wells Fargo & Company increased their price objective on Ares Capital from $22.00 to $23.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th. JMP Securities set a $23.00 price objective on Ares Capital and gave the company a "market outperform" rating in a research report on Thursday, July 31st. Wall Street Zen upgraded Ares Capital from a "sell" rating to a "hold" rating in a research report on Sunday. Finally, Capital One Financial set a $22.50 price objective on Ares Capital in a research report on Friday, October 10th. Eight investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $22.63.

Ares Capital Price Performance

ARCC opened at $19.51 on Friday. The stock has a fifty day moving average of $21.33 and a 200-day moving average of $21.53. The firm has a market capitalization of $13.76 billion, a P/E ratio of 9.52 and a beta of 0.68. Ares Capital Corporation has a 12-month low of $18.26 and a 12-month high of $23.84. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 1.01.

Ares Capital (NASDAQ:ARCC - Get Free Report) last released its earnings results on Tuesday, July 29th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.51 by ($0.01). The business had revenue of $614.00 million during the quarter, compared to analysts' expectations of $748.76 million. Ares Capital had a net margin of 44.94% and a return on equity of 10.48%. During the same quarter in the previous year, the company earned $0.61 EPS. Equities analysts forecast that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th were issued a $0.48 dividend. The ex-dividend date was Monday, September 15th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.8%. Ares Capital's dividend payout ratio is presently 93.66%.

Ares Capital Profile

Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.

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