Ares Capital Corporation $ARCC Shares Sold by Confluence Investment Management LLC

Key Points

• Confluence Investment Management LLC reduced its Ares Capital position by 3.8%, selling 139,638 shares and ending the quarter with 3,542,772 shares (about 0.49% of the company) valued at roughly $71.67 million.
• Ares Capital declared a quarterly dividend of $0.48 (annualized $1.92), representing a 10.6% yield
• Company insiders showed conviction through purchases: the CFO bought 5,186 shares at $19.29 and the CEO bought 12,500 shares at $19.13, increasing their holdings by 15.13% and 44.64% respectively.

Confluence Investment Management LLC reduced its position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 3.8% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 3,542,772 shares of the investment management company's stock after selling 139,638 shares during the period. Confluence Investment Management LLC owned approximately 0.49% of Ares Capital worth $71,670,000 at the end of the most recent quarter.

Several other large investors also recently modified their holdings of ARCC. Partners Group Holding AG grew its holdings in Ares Capital by 4.8% during 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 in the last quarter. International Assets Investment Management LLC raised its stake in shares of Ares Capital by 33.9% in the 3rd quarter. International Assets Investment Management LLC now owns 275,891 shares of the investment management company's stock valued at $5,557,000 after purchasing an additional 69,844 shares in the last quarter. Prevail Innovative Wealth Advisors LLC bought a new position in shares of Ares Capital during the third quarter worth about $1,430,000. Global Retirement Partners LLC lifted its position in shares of Ares Capital by 265.3% during the third quarter. Global Retirement Partners LLC now owns 74,725 shares of the investment management company's stock worth $1,525,000 after purchasing an additional 54,267 shares during the last quarter. Finally, Rathbones Group PLC grew its stake in Ares Capital by 27.2% in the third quarter. Rathbones Group PLC now owns 438,807 shares of the investment management company's stock worth $8,956,000 after purchasing an additional 93,800 shares in the last quarter. 27.38% of the stock is currently owned by institutional investors and hedge funds.

Ares Capital Stock Performance

Shares of ARCC stock opened at $18.19 on Friday. The company has a market cap of $13.06 billion, a P/E ratio of 9.78 and a beta of 0.59. The business has a 50 day moving average of $19.50 and a two-hundred day moving average of $20.17. Ares Capital Corporation has a 52 week low of $17.59 and a 52 week high of $23.42. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 1.12.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its quarterly 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. The business had revenue of $793.00 million for the quarter, compared to analysts' expectations of $795.20 million. Ares Capital had a return on equity of 9.89% and a net margin of 42.56%.The business's quarterly revenue was up 4.5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.55 EPS. As a group, analysts anticipate that Ares Capital Corporation will post 2.19 EPS for the current year.

Ares Capital Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Friday, March 13th will be paid a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 10.6%. The ex-dividend date is Friday, March 13th. Ares Capital's dividend payout ratio (DPR) is presently 103.23%.

Wall Street Analyst Weigh In

Several analysts recently weighed in on ARCC shares. Weiss Ratings reissued a "hold (c+)" rating on shares of Ares Capital in a report on Monday, December 29th. UBS Group decreased their target price on Ares Capital from $21.00 to $19.00 and set a "neutral" rating for the company in a research report on Friday, March 13th. Wall Street Zen downgraded Ares Capital from a "hold" rating to a "sell" rating in a report on Saturday, February 7th. JPMorgan Chase & Co. dropped their price target on Ares Capital from $22.00 to $19.00 and set an "overweight" rating on the stock in a research report on Friday, March 13th. Finally, Royal Bank Of Canada reduced their price objective on Ares Capital from $23.00 to $22.00 and set an "outperform" rating on the stock in a research note on Monday, February 9th. Seven research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, Ares Capital presently has an average rating of "Moderate Buy" and an average price target of $21.38.

Insider Buying and Selling at Ares Capital

In other news, CFO Scott C. Lem bought 5,186 shares of Ares Capital stock in a transaction on Friday, February 6th. The stock was purchased at an average cost of $19.29 per share, with a total value of $100,037.94. Following 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. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Michael Kort Schnabel bought 12,500 shares of the firm's stock in a transaction on Thursday, February 5th. The stock was purchased at an average price of $19.13 per share, with a total value of $239,125.00. Following the transaction, the chief executive officer owned 40,500 shares in the company, valued at $774,765. The trade was a 44.64% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 0.49% of the company's stock.

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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