Confluence Investment Management LLC Reduces Stake in Ares Capital Corporation $ARCC

Key Points

• Confluence Investment Management reduced its Ares Capital stake by 2% in the second quarter, selling 67,709 shares and retaining 3.37 million shares worth approximately $62.4 million. Institutional investors collectively own 27.38% of ARCC.
• Ares Capital reported quarterly EPS of $0.47, matching analyst expectations, while revenue of $768 million came in slightly below estimates. The company declared a quarterly dividend of $0.48, equivalent to a 10.0% annualized yield.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and a $20.40 target price, although several firms recently lowered their price targets.

Confluence Investment Management LLC lowered its position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 2.0% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 3,367,580 shares of the investment management company's stock after selling 67,709 shares during the period. Confluence Investment Management LLC owned about 0.47% of Ares Capital worth $62,401,000 at the end of the most recent reporting period.

A number of other hedge funds also recently bought and sold shares of ARCC. Palladiem LLC purchased a new position in Ares Capital in the fourth quarter worth about $26,000. SWAN Capital LLC bought a new stake in shares of Ares Capital during the 3rd quarter valued at about $27,000. Sankala Group LLC purchased a new stake in shares of Ares Capital during the 4th quarter valued at about $28,000. Core Wealth Advisors LLC purchased a new stake in shares of Ares Capital during the 4th quarter valued at about $33,000. Finally, Quarry LP bought a new position in shares of Ares Capital in the 3rd quarter worth approximately $33,000. Hedge funds and other institutional investors own 27.38% of the company's stock.

Ares Capital Stock Up 2.2%

ARCC stock opened at $19.17 on Tuesday. The business's 50-day moving average price is $18.69 and its 200-day moving average price is $18.88. The stock has a market cap of $13.76 billion, a P/E ratio of 14.20 and a beta of 0.56. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.14. Ares Capital Corporation has a twelve month low of $17.40 and a twelve month high of $22.76.

Ares Capital (NASDAQ:ARCC - Get Free Report) last released its earnings results on Wednesday, July 29th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.47. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. The company had revenue of $768.00 million during the quarter, compared to analyst estimates of $770.19 million. During the same period in the prior year, the firm posted $0.50 EPS. On average, equities research analysts forecast that Ares Capital Corporation will post 1.9 EPS for the current year.

Ares Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be paid a $0.48 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 10.0%. Ares Capital's dividend payout ratio is 142.22%.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on ARCC. Truist Financial dropped their price objective on shares of Ares Capital from $22.00 to $21.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Keefe, Bruyette & Woods decreased their price target on shares of Ares Capital from $21.00 to $20.00 and set an "outperform" rating on the stock in a research report on Thursday, July 30th. Wall Street Zen downgraded shares of Ares Capital from a "hold" rating to a "sell" rating in a research report on Sunday. Weiss Ratings reiterated a "hold (c)" rating on shares of Ares Capital in a research note on Tuesday, June 9th. Finally, Oppenheimer cut their price objective on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a research report on Wednesday, April 29th. Eight investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $20.40.

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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