Ares Capital Corporation $ARCC Shares Bought by Texas Capital Bank Wealth Management Services Inc

Key Points

• Texas Capital Bank Wealth Management Services increased its Ares Capital stake by 31.6% in the fourth quarter, buying 57,834 more shares and bringing its total to 241,090 shares worth about $4.88 million.
• Institutional interest remains notable, with hedge funds and other investors continuing to add to ARCC positions; institutions now own 27.38% of the company.
• Ares Capital posted mixed results: quarterly EPS of $0.47 narrowly missed estimates, while revenue came in below expectations, even as the company announced a $0.48 quarterly dividend that implies a 10.2% yield.

Texas Capital Bank Wealth Management Services Inc increased its position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 31.6% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 241,090 shares of the investment management company's stock after acquiring an additional 57,834 shares during the period. Texas Capital Bank Wealth Management Services Inc's holdings in Ares Capital were worth $4,877,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. Partners Group Holding AG grew its holdings in shares of Ares Capital by 4.8% in the 3rd 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 period. Investment Partners Asset Management Inc. acquired a new stake in shares of Ares Capital in the 4th quarter worth approximately $1,314,000. Prevail Innovative Wealth Advisors LLC acquired a new stake in shares of Ares Capital in the 3rd quarter worth approximately $1,430,000. Sound Income Strategies LLC grew its holdings in shares of Ares Capital by 5.6% in the 4th 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 period. Finally, Tectonic Advisors LLC grew its holdings in shares of Ares Capital by 10.8% in 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 during the period. Institutional investors and hedge funds own 27.38% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the company. Oppenheimer reduced their target price on Ares Capital from $22.00 to $21.00 and set an "outperform" rating on the stock in a research note on Wednesday, April 29th. Keefe, Bruyette & Woods reduced their target price on Ares Capital from $22.00 to $21.00 and set an "outperform" rating on the stock in a research note on Thursday, April 16th. Citizens Jmp reduced their target price on Ares Capital from $23.00 to $22.00 and set a "market outperform" rating on the stock in a research note on Wednesday, April 22nd. JPMorgan Chase & Co. reduced their target price 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. Finally, Wells Fargo & Company reduced their target price on Ares Capital from $21.00 to $20.00 and set an "overweight" rating on the stock in a research note on Thursday, February 5th. Nine analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Ares Capital has a consensus rating of "Moderate Buy" and a consensus price target of $20.75.

Ares Capital Trading Up 0.2%

Shares of Ares Capital stock opened at $18.86 on Thursday. 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 cap of $13.54 billion, a PE ratio of 11.57 and a beta of 0.58. The business's fifty day moving average is $18.53 and its two-hundred day moving average is $19.45. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.13.

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 for the quarter, missing analysts' consensus estimates of $0.48 by ($0.01). Ares Capital had a return on equity of 9.85% and a net margin of 37.30%.The business 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 EPS. The company's revenue for the quarter was up 4.2% compared to the same quarter last year. Analysts anticipate that Ares Capital Corporation will post 1.91 earnings per share for the current year.

Ares Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be paid a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 10.2%. The ex-dividend date of this dividend is Monday, June 15th. Ares Capital's dividend payout ratio is currently 117.79%.

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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