Ares Capital Corporation $ARCC Shares Bought by Farther Finance Advisors LLC

Key Points

• Farther Finance Advisors LLC increased its stake in Ares Capital by 87.9% in Q4, buying an additional 64,634 shares to hold 138,129 shares worth about $2.79 million.
• Insiders bought shares: CEO Michael Kort Schnabel purchased 12,500 shares at $19.13 and CFO Scott C. Lem bought 5,186 shares at $19.29, with corporate insiders owning 0.49% of the stock.
• Ares paid a quarterly dividend of $0.48 (annualized $1.92), implying a 10.1% yield, though the dividend payout ratio is high at 103.23%.

Farther Finance Advisors LLC raised its stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 87.9% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 138,129 shares of the investment management company's stock after buying an additional 64,634 shares during the quarter. Farther Finance Advisors LLC's holdings in Ares Capital were worth $2,794,000 at the end of the most recent quarter.

Other large investors also recently bought and sold shares of the company. Partners Group Holding AG lifted its position 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 valued at $36,068,000 after buying an additional 80,885 shares during the last quarter. International Assets Investment Management LLC lifted its position 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 valued at $5,557,000 after buying an additional 69,844 shares during the last quarter. Investment Partners Asset Management Inc. acquired a new position in Ares Capital in the fourth quarter valued at about $1,314,000. Prevail Innovative Wealth Advisors LLC acquired a new position in Ares Capital in the third quarter valued at about $1,430,000. Finally, Sound Income Strategies LLC increased its stake 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 purchasing an additional 138,857 shares during the period. Institutional investors and hedge funds own 27.38% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have issued reports on ARCC. Royal Bank Of Canada cut their price target on shares of Ares Capital from $23.00 to $22.00 and set an "outperform" rating on the stock in a research note on Monday, February 9th. B. Riley Financial reiterated a "buy" rating on shares of Ares Capital in a research note on Monday, February 9th. Wall Street Zen lowered shares of Ares Capital from a "hold" rating to a "sell" rating in a research note on Saturday, February 7th. JPMorgan Chase & Co. cut their price target on shares of Ares Capital from $22.00 to $19.00 and set an "overweight" rating on the stock in a research note on Friday, March 13th. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of Ares Capital in a research note on Monday, December 29th. Seven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $21.25.

Insider Buying and Selling

In other news, CEO Michael Kort Schnabel bought 12,500 shares of the business's stock in a transaction that occurred on Thursday, February 5th. The shares were purchased at an average cost of $19.13 per share, for a total transaction of $239,125.00. Following the completion of the purchase, the chief executive officer owned 40,500 shares of the company's stock, valued at approximately $774,765. This represents a 44.64% 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 hyperlink. Also, CFO Scott C. Lem bought 5,186 shares of the business's stock in a transaction that occurred on Friday, February 6th. The shares were purchased at an average price of $19.29 per share, for a total transaction of $100,037.94. Following the completion of the purchase, the chief financial officer directly owned 39,463 shares of the company's stock, valued at approximately $761,241.27. This trade represents a 15.13% 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 Stock Up 1.7%

ARCC stock opened at $19.09 on Friday. The company's 50 day moving average price is $18.62 and its 200 day moving average price is $19.66. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.70 and a current ratio of 1.70. Ares Capital Corporation has a fifty-two week low of $17.40 and a fifty-two week high of $23.42. The firm has a market capitalization of $13.71 billion, a price-to-earnings ratio of 10.26 and a beta of 0.58.

Ares Capital (NASDAQ:ARCC - Get Free Report) last released 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. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The firm had revenue of $793.00 million for the quarter, compared to analyst estimates of $795.20 million. During the same period in the prior year, the firm earned $0.55 earnings per share. The business's quarterly revenue was up 4.5% compared to the same quarter last year. On average, equities research analysts anticipate that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Dividend Announcement

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

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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