Atria Wealth Solutions Inc. Lowers Position in Ares Capital Corporation (NASDAQ:ARCC)

Key Points

• Atria Wealth Solutions Inc. reduced its stake in Ares Capital Corporation by 12.1%, now holding 145,211 shares valued at approximately $3.2 million.
• Ares Capital reported a missed earnings estimate with $0.50 earnings per share, falling short of the expected $0.51, and reported revenue of $614 million compared to a forecast of $748.76 million.
• The company declared a quarterly dividend of $0.48 per share, representing an annualized yield of 8.6% with a payout ratio of 93.66%.

Atria Wealth Solutions Inc. trimmed its stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 12.1% in the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 145,211 shares of the investment management company's stock after selling 19,898 shares during the quarter. Atria Wealth Solutions Inc.'s holdings in Ares Capital were worth $3,218,000 as of its most recent filing with the SEC.

A number of other institutional investors have also recently bought and sold shares of the stock. Bank of America Corp DE grew its holdings in Ares Capital by 12.3% in the fourth quarter. Bank of America Corp DE now owns 7,951,926 shares of the investment management company's stock valued at $174,068,000 after purchasing an additional 871,370 shares during the period. LPL Financial LLC grew its holdings in Ares Capital by 9.0% in the first quarter. LPL Financial LLC now owns 3,567,816 shares of the investment management company's stock valued at $79,063,000 after purchasing an additional 293,442 shares during the period. Advisors Capital Management LLC grew its holdings in Ares Capital by 3.1% in the fourth quarter. Advisors Capital Management LLC now owns 3,523,651 shares of the investment management company's stock valued at $77,133,000 after purchasing an additional 105,526 shares during the period. Allen Investment Management LLC grew its holdings in Ares Capital by 8.4% in the first quarter. Allen Investment Management LLC now owns 2,975,197 shares of the investment management company's stock valued at $65,930,000 after purchasing an additional 230,924 shares during the period. Finally, CCLA Investment Management grew its holdings in Ares Capital by 26.5% in the first quarter. CCLA Investment Management now owns 2,799,023 shares of the investment management company's stock valued at $62,026,000 after purchasing an additional 587,068 shares during the period. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

Ares Capital Price Performance

Shares of ARCC stock opened at $22.39 on Friday. The company has a market capitalization of $15.79 billion, a PE ratio of 10.92 and a beta of 0.70. The firm has a fifty day simple moving average of $22.30 and a 200-day simple moving average of $22.04. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 1.01. Ares Capital Corporation has a twelve month low of $18.26 and a twelve month high of $23.84.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its earnings results on Tuesday, July 29th. The investment management company reported $0.50 earnings per share for the quarter, missing the consensus estimate of $0.51 by ($0.01). The firm had revenue of $614.00 million during the quarter, compared to analysts' expectations of $748.76 million. Ares Capital had a net margin of 44.94% and a return on equity of 10.48%. During the same quarter last year, the company posted $0.61 earnings per share. Equities research analysts anticipate that Ares Capital Corporation will post 2.19 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th will be paid a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a yield of 8.6%. The ex-dividend date is Monday, September 15th. Ares Capital's dividend payout ratio is 93.66%.

Wall Street Analyst Weigh In

Several research firms have issued reports on ARCC. JPMorgan Chase & Co. decreased their price objective on shares of Ares Capital from $24.50 to $22.00 and set an "overweight" rating for the company in a research note on Thursday, April 24th. Citigroup reiterated an "outperform" rating on shares of Ares Capital in a research note on Thursday, July 31st. JMP Securities set a $23.00 price objective on shares of Ares Capital and gave the stock a "market outperform" rating in a research note on Thursday, July 31st. Keefe, Bruyette & Woods boosted their price objective on shares of Ares Capital from $22.00 to $23.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 30th. Finally, Royal Bank Of Canada decreased their price objective on shares of Ares Capital from $24.00 to $23.00 and set an "outperform" rating for the company in a research note on Tuesday, May 6th. One investment analyst has rated the stock with a sell rating, two have given a hold rating and seven have issued a buy rating to the company's stock. Based on data from MarketBeat, Ares Capital currently has a consensus rating of "Moderate Buy" and an average target price of $22.86.

Ares Capital Profile

Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.

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