Ares Capital Corporation $ARCC Shares Purchased by Tectonic Advisors LLC

Key Points

• Tectonic Advisors increased its Ares Capital stake by 11.1% in the third quarter, bringing its holdings to 938,383 shares valued at approximately $17.9 million. Institutional investors and hedge funds collectively own 27.38% of ARCC.
• Analysts maintain a generally positive outlook, with eight Buy ratings and three Holds, resulting in a consensus “Moderate Buy” rating and an average price target of $20.39.
• Ares Capital reported quarterly EPS of $0.47, in line with expectations, and recently paid a $0.48-per-share quarterly dividend. The annualized dividend of $1.92 represents a yield of about 10.3%.

Tectonic Advisors LLC lifted its stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 11.1% in the 3rd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 938,383 shares of the investment management company's stock after purchasing an additional 93,412 shares during the quarter. Ares Capital comprises about 0.8% of Tectonic Advisors LLC's portfolio, making the stock its 25th largest holding. Tectonic Advisors LLC owned about 0.13% of Ares Capital worth $17,923,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors also recently bought and sold shares of the stock. Orion Capital Management LLC purchased a new stake in Ares Capital during the 2nd quarter worth approximately $25,000. Fortitude Family Office LLC increased its stake in Ares Capital by 145.2% during the 3rd quarter. Fortitude Family Office LLC now owns 1,297 shares of the investment management company's stock valued at $25,000 after purchasing an additional 768 shares in the last quarter. Continuum Advisory LLC purchased a new position in shares of Ares Capital in the second quarter worth $30,000. TOP Private Wealth LLC. purchased a new position in shares of Ares Capital in the second quarter worth $31,000. Finally, Frazier Financial Advisors LLC purchased a new position in shares of Ares Capital in the second quarter worth $50,000. 27.38% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the stock. Keefe, Bruyette & Woods lowered their price objective on shares of Ares Capital from $21.00 to $20.00 and set an "outperform" rating for the company in a research note on Thursday, July 30th. JPMorgan Chase & Co. cut their target price on Ares Capital from $19.00 to $18.50 and set an "overweight" rating on the stock in a research report on Thursday, July 2nd. Weiss Ratings restated a "hold (c)" rating on shares of Ares Capital in a research note on Friday, September 4th. Truist Financial lowered their price target on Ares Capital from $22.00 to $21.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. Finally, Wall Street Zen raised Ares Capital from a "sell" rating to a "hold" rating in a research report on Saturday, September 19th. Eight investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $20.39.

Ares Capital Stock Performance

NASDAQ:ARCC traded down $0.15 during midday trading on Friday, hitting $18.64. The company's stock had a trading volume of 4,844,743 shares, compared to its average volume of 4,297,268. Ares Capital Corporation has a fifty-two week low of $17.40 and a fifty-two week high of $21.14. The firm's 50 day moving average is $19.32 and its 200-day moving average is $18.99. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.28 and a quick ratio of 1.28. The firm has a market cap of $13.38 billion, a P/E ratio of 13.81 and a beta of 0.61.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The investment management company reported $0.47 EPS for the quarter, meeting the consensus estimate of $0.47. The business had revenue of $768.00 million during the quarter, compared to analysts' expectations of $770.19 million. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. During the same period in the previous year, the business posted $0.50 EPS. Equities analysts anticipate that Ares Capital Corporation will post 1.91 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were given a dividend of $0.48 per share. The ex-dividend date was Tuesday, September 15th. This represents a $1.92 dividend on an annualized basis and a yield of 10.3%. Ares Capital's payout ratio is currently 142.22%.

Ares Capital Company Profile

Ares Capital Corporation NASDAQ: ARCC is a business development company that provides financing to middle-market companies. The company primarily invests in first-lien senior secured loans, second-lien loans, subordinated debt, and, to a lesser extent, equity securities. Its investments are generally designed to support acquisitions, recapitalizations, refinancings, growth initiatives, and other corporate activities.

Founded in 2004, Ares Capital is externally managed by Ares Capital Management LLC, an affiliate of Ares Management Corporation.

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