Ares Capital Corporation $ARCC Stock: Obermeyer Wealth Partners Boosts Position

Key Points

• Obermeyer Wealth Partners increased its Ares Capital stake by 22.3% in the third quarter, reaching 362,739 shares valued at approximately $6.93 million. Institutional investors collectively own 27.38% of ARCC.
• Analysts maintain a generally positive outlook, with eight Buy ratings and three Holds, producing a consensus “Moderate Buy” rating and an average price target of $20.39.
• ARCC opened at $18.40, while its latest quarterly results matched expectations at $0.47 earnings per share. The company declared a $0.48 quarterly dividend, equivalent to a 10.4% annualized yield.

Obermeyer Wealth Partners lifted its stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 22.3% during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 362,739 shares of the investment management company's stock after purchasing an additional 66,038 shares during the quarter. Obermeyer Wealth Partners owned about 0.05% of Ares Capital worth $6,928,000 at the end of the most recent quarter.

A number of other institutional investors have also modified their holdings of the company. Magnus Financial Group LLC lifted its position in Ares Capital by 2.5% during the third quarter. Magnus Financial Group LLC now owns 23,881 shares of the investment management company's stock valued at $456,000 after buying an additional 579 shares in the last quarter. Axxcess Wealth Management LLC boosted its position in Ares Capital by 42.6% during the 3rd quarter. Axxcess Wealth Management LLC now owns 29,168 shares of the investment management company's stock valued at $557,000 after purchasing an additional 8,713 shares during the period. Sowell Financial Services LLC grew its position in Ares Capital by 171.5% in the 3rd quarter. Sowell Financial Services LLC now owns 37,597 shares of the investment management company's stock worth $718,000 after purchasing an additional 23,749 shares during the last quarter. Quadrant Capital Group LLC increased its position in Ares Capital by 3.8% in the 3rd quarter. Quadrant Capital Group LLC now owns 32,881 shares of the investment management company's stock valued at $610,000 after acquiring an additional 1,201 shares during the period. Finally, Bell Bank lifted its holdings in Ares Capital by 3.2% in the third quarter. Bell Bank now owns 532,313 shares of the investment management company's stock worth $10,167,000 after purchasing an additional 16,509 shares during the period. Institutional investors and hedge funds own 27.38% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on ARCC shares. JPMorgan Chase & Co. reduced their price objective on Ares Capital from $19.00 to $18.50 and set an "overweight" rating for the company in a research note on Thursday, July 2nd. Wall Street Zen raised shares of Ares Capital from a "sell" rating to a "hold" rating in a research note on Saturday, September 19th. UBS Group lifted their price target on shares of Ares Capital from $19.00 to $21.00 and gave the company a "neutral" rating in a research report on Tuesday, September 1st. Keefe, Bruyette & Woods cut their price objective 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, Weiss Ratings reissued a "hold (c)" rating on shares of Ares Capital in a report on Friday, September 4th. 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 presently has an average rating of "Moderate Buy" and a consensus price target of $20.39.

Ares Capital Stock Down 0.6%

NASDAQ ARCC opened at $18.40 on Thursday. The stock's 50 day moving average is $19.38 and its two-hundred day moving average is $18.99. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 1.14. The company has a market capitalization of $13.21 billion, a price-to-earnings ratio of 13.63 and a beta of 0.61. Ares Capital Corporation has a 1-year low of $17.40 and a 1-year high of $21.14.

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, meeting analysts' consensus estimates of $0.47. The firm had revenue of $768.00 million for the quarter, compared to analysts' expectations of $770.19 million. Ares Capital had a return on equity of 9.80% and a net margin of 30.91%. During the same period in the prior year, the business posted $0.50 earnings per share. Equities analysts forecast that Ares Capital Corporation will post 1.91 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were issued a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a yield of 10.4%. The ex-dividend date of this dividend was Tuesday, September 15th. Ares Capital's dividend payout ratio (DPR) is currently 142.22%.

Ares Capital 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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