Ares Capital Corporation $ARCC Position Trimmed by Allen Investment Management LLC

Key Points

• Allen Investment Management cut its Ares Capital stake by 15.8% in the first quarter, selling 487,967 shares and leaving it with 2,598,482 shares valued at about $46.8 million.
• Several analysts trimmed price targets on ARCC, though the stock still carries a consensus rating of Moderate Buy with a target price of $20.60.
• Ares Capital recently reported mixed quarterly results, missing EPS and revenue estimates slightly, while also paying a $0.48 quarterly dividend that annualizes to a 10.0% yield.

Allen Investment Management LLC cut its stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 15.8% during the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 2,598,482 shares of the investment management company's stock after selling 487,967 shares during the period. Allen Investment Management LLC owned about 0.36% of Ares Capital worth $46,825,000 at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of the stock. Investment Partners Asset Management Inc. bought a new stake in Ares Capital in the fourth quarter worth approximately $1,314,000. Sound Income Strategies LLC increased its position in Ares Capital by 5.6% during 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 buying an additional 138,857 shares during the last quarter. Tectonic Advisors LLC increased its position in Ares Capital by 10.8% during the fourth quarter. Tectonic Advisors LLC now owns 662,533 shares of the investment management company's stock worth $13,403,000 after buying an additional 64,491 shares during the last quarter. Stableford Capital II LLC lifted its position in shares of Ares Capital by 75.7% in the fourth quarter. Stableford Capital II LLC now owns 145,641 shares of the investment management company's stock worth $2,946,000 after buying an additional 62,768 shares during the last quarter. Finally, Prairiewood Capital LLC boosted its stake in shares of Ares Capital by 22.9% during the 4th quarter. Prairiewood Capital LLC now owns 303,282 shares of the investment management company's stock worth $6,135,000 after acquiring an additional 56,465 shares in the last quarter. Institutional investors and hedge funds own 27.38% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on ARCC shares. B. Riley Financial reduced their target price on Ares Capital from $22.00 to $20.00 and set a "buy" rating for the company in a report on Wednesday, April 29th. Citizens Jmp decreased their price objective on shares of Ares Capital from $23.00 to $22.00 and set a "market outperform" rating for the company in a report on Wednesday, April 22nd. JPMorgan Chase & Co. lowered their target price on shares of Ares Capital from $19.00 to $18.50 and set an "overweight" rating on the stock in a research note on Thursday, July 2nd. Royal Bank Of Canada cut their target price on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a research report on Wednesday, April 29th. Finally, Truist Financial lowered their price target on Ares Capital from $23.00 to $22.00 and set a "buy" rating on the stock in a research report on Wednesday, April 29th. Eight research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $20.60.

Ares Capital Price Performance

Shares of ARCC opened at $19.17 on Monday. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.40 and a current ratio of 1.40. The company has a 50-day simple moving average of $18.65 and a 200-day simple moving average of $19.01. Ares Capital Corporation has a 52 week low of $17.40 and a 52 week high of $23.42. The firm has a market capitalization of $13.76 billion, a P/E ratio of 11.76 and a beta of 0.56.

Ares Capital (NASDAQ:ARCC - Get Free Report) last issued 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 net margin of 37.30% and a return on equity of 9.85%. The firm had revenue of $763.00 million for the quarter, compared to the consensus estimate of $778.00 million. During the same quarter in the prior year, the firm earned $0.50 earnings per share. The company's revenue was up 4.2% on a year-over-year basis. On average, equities research analysts expect that Ares Capital Corporation will post 1.9 earnings per share for the current year.

Ares Capital Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were given a $0.48 dividend. This represents a $1.92 annualized dividend and a yield of 10.0%. The ex-dividend date of this dividend was Monday, June 15th. Ares Capital's dividend payout ratio (DPR) is 117.79%.

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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