Corient Private Wealth LP Lowers Stake in Ares Capital Corporation $ARCC

Key Points

• Corient Private Wealth LP reduced its Ares Capital stake by 13.8% in the second quarter, selling 132,583 shares and retaining 828,699 shares worth approximately $15.4 million. Institutional investors overall own 27.38% of ARCC.
• Ares Capital reported quarterly EPS of $0.47, matching analyst estimates, while revenue of $768 million came in slightly below expectations. The stock opened at $19.37, within its $17.40–$21.64 12-month range.
• The company declared a quarterly dividend of $0.48 per share, equivalent to an annualized $1.92 and a 9.9% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $20.60, although some firms recently lowered targets or downgraded the stock.

Corient Private Wealth LP cut its stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 13.8% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 828,699 shares of the investment management company's stock after selling 132,583 shares during the period. Corient Private Wealth LP owned about 0.12% of Ares Capital worth $15,356,000 at the end of the most recent quarter.

Several other institutional investors also recently added to or reduced their stakes in the stock. Strs Ohio bought a new position in Ares Capital during the 1st quarter worth about $189,210,000. Bank of America Corp DE purchased a new position in shares of Ares Capital in the 2nd quarter valued at approximately $165,569,000. Legal & General Group Plc acquired a new stake in shares of Ares Capital during the second quarter worth $120,538,000. Advisors Capital Management LLC acquired a new position in shares of Ares Capital in the 2nd quarter valued at $63,140,000. Finally, OMERS ADMINISTRATION Corp acquired a new position in shares of Ares Capital in the second quarter valued at about $53,867,000. Hedge funds and other institutional investors own 27.38% of the company's stock.

Ares Capital Stock Performance

ARCC opened at $19.37 on Wednesday. The firm has a market capitalization of $13.91 billion, a PE ratio of 14.35 and a beta of 0.57. Ares Capital Corporation has a twelve month low of $17.40 and a twelve month high of $21.64. The firm's 50-day moving average price is $19.46 and its 200 day moving average price is $18.88. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 1.14.

Ares Capital (NASDAQ:ARCC - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The investment management company reported $0.47 EPS for the quarter, meeting analysts' consensus estimates 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 the consensus estimate of $770.19 million. During the same quarter in the prior year, the firm earned $0.50 EPS. As a group, sell-side analysts expect that Ares Capital Corporation will post 1.91 EPS for the current fiscal year.

Ares Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be paid a dividend of $0.48 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.92 dividend on an annualized basis and a yield of 9.9%. Ares Capital's payout ratio is 142.22%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. JPMorgan Chase & Co. decreased their price objective on Ares Capital from $19.00 to $18.50 and set an "overweight" rating for the company in a report on Thursday, July 2nd. Wall Street Zen lowered Ares Capital from a "hold" rating to a "sell" rating in a report on Sunday, August 2nd. Wells Fargo & Company reiterated an "equal weight" rating and set a $19.00 price target (down from $20.00) on shares of Ares Capital in a research report on Friday, June 12th. UBS Group boosted their price target on Ares Capital from $19.00 to $21.00 and gave the company a "neutral" rating in a report on Tuesday, September 1st. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Ares Capital in a research report on Friday, September 4th. Eight equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Ares Capital currently has an average rating of "Moderate Buy" and a consensus target price of $20.60.

Ares Capital Profile

Ares Capital Corporation NASDAQ: ARCC is a business development company that provides financing to middle-market companies. The company invests primarily in privately originated loans and other debt investments, helping businesses fund acquisitions, recapitalizations, refinancings, growth initiatives and other corporate purposes.

Its investment portfolio generally includes senior secured loans, subordinated debt and mezzanine financing, along with selected equity investments. Ares Capital focuses on companies with established operations across a variety of industries and typically works with private equity sponsors, management teams and other financial partners.

Founded in 2004, Ares Capital is externally managed by Ares Capital Management LLC, an affiliate of global alternative investment manager Ares Management Corporation.

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