Ares Capital Corporation $ARCC Stock: Baldwin Wealth Partners LLC MA Raises Position

Key Points

• Baldwin Wealth Partners increased its Ares Capital position by 33.9% in the third quarter, bringing its holdings to 587,917 shares valued at approximately $11.2 million. Institutional investors collectively own 27.38% of ARCC.
• Analysts maintain a generally positive outlook, with eight Buy ratings and three Holds. Ares Capital has a consensus “Moderate Buy” rating and an average price target of $20.39.
• ARCC was trading at $18.63, while its latest quarterly results matched expectations at $0.47 earnings per share. The company also declared a quarterly dividend of $0.48, equivalent to a 10.3% annualized yield.

Baldwin Wealth Partners LLC MA grew its position in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 33.9% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 587,917 shares of the investment management company's stock after purchasing an additional 148,896 shares during the period. Baldwin Wealth Partners LLC MA owned 0.08% of Ares Capital worth $11,229,000 at the end of the most recent quarter.

A number of other large investors also recently made changes to their positions in ARCC. Van ECK Associates Corp lifted its holdings in shares of Ares Capital by 22.2% during the 2nd quarter. Van ECK Associates Corp now owns 13,306,095 shares of the investment management company's stock worth $246,562,000 after acquiring an additional 2,418,984 shares during the period. Strs Ohio acquired a new stake in shares of Ares Capital in the first quarter worth approximately $189,210,000. Bank of America Corp DE acquired a new stake in shares of Ares Capital in the second quarter worth approximately $165,569,000. Legal & General Group Plc purchased a new stake in Ares Capital in the second quarter valued at approximately $120,538,000. Finally, HighTower Advisors LLC grew its holdings in Ares Capital by 9.5% in the second quarter. HighTower Advisors LLC now owns 3,870,130 shares of the investment management company's stock valued at $71,714,000 after purchasing an additional 335,197 shares during the period. Hedge funds and other institutional investors own 27.38% of the company's stock.

Wall Street Analyst Weigh In

ARCC has been the subject of a number of research analyst reports. Weiss Ratings restated a "hold (c)" rating on shares of Ares Capital in a report on Friday, September 4th. JPMorgan Chase & Co. reduced their target price on Ares Capital from $19.00 to $18.50 and set an "overweight" rating on the stock in a report on Thursday, July 2nd. 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. Keefe, Bruyette & Woods lowered their price target on Ares Capital from $21.00 to $20.00 and set an "outperform" rating for the company in a research report on Thursday, July 30th. Finally, Wall Street Zen upgraded Ares Capital from a "sell" rating to a "hold" rating in a research note on Saturday, September 19th. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $20.39.

Ares Capital Trading Up 0.4%

NASDAQ ARCC opened at $18.63 on Tuesday. The firm has a market capitalization of $13.38 billion, a price-to-earnings ratio of 13.80 and a beta of 0.61. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.28 and a current ratio of 1.28. Ares Capital Corporation has a one year low of $17.40 and a one year high of $21.14. The company's 50 day moving average price is $19.54 and its 200 day moving average price is $18.95.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The investment management company reported $0.47 earnings per share for the quarter, hitting analysts' consensus estimates of $0.47. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. The firm had revenue of $768.00 million during the quarter, compared to analysts' expectations of $770.19 million. During the same period in the prior year, the company earned $0.50 EPS. On average, sell-side analysts predict that Ares Capital Corporation will post 1.91 EPS for the current year.

Ares Capital Dividend Announcement

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

About Ares Capital

Ares Capital Corporation NASDAQ: ARCC is a specialty finance company that operates as a business development company (BDC). It provides financing to middle-market companies, primarily through directly originated loans and other investments. Ares Capital seeks to support businesses that may require capital for acquisitions, growth initiatives, recapitalizations, refinancings and other corporate purposes.

The company invests across a range of industries and typically provides first-lien senior secured loans, second-lien loans, subordinated debt and, to a lesser extent, equity investments.

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