Crestwood Advisors Group LLC Purchases 98,050 Shares of Ares Capital Corporation $ARCC

Key Points

• Crestwood Advisors Group LLC increased its Ares Capital stake by 36.8% in the fourth quarter, buying 98,050 additional shares and bringing its total holding to 364,735 shares valued at about $7.38 million.
• Other institutional investors also made moves in ARCC, while institutions overall own 27.38% of the company’s stock.
• Ares Capital recently reported quarterly EPS of $0.47, slightly below estimates, and declared a $0.48 per share quarterly dividend, implying an annualized yield of about 10.1%.

Crestwood Advisors Group LLC grew its position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 36.8% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 364,735 shares of the investment management company's stock after acquiring an additional 98,050 shares during the quarter. Crestwood Advisors Group LLC owned 0.05% of Ares Capital worth $7,379,000 as of its most recent SEC filing.

A number of other hedge funds also recently modified their holdings of ARCC. SWAN Capital LLC bought a new stake in shares of Ares Capital in the 3rd quarter worth approximately $27,000. NBT Bank N A NY bought a new stake in shares of Ares Capital in the 3rd quarter worth approximately $31,000. Quarry LP bought a new stake in shares of Ares Capital in the 3rd quarter worth approximately $33,000. Ameriflex Group Inc. lifted its position in shares of Ares Capital by 201.0% during the 3rd quarter. Ameriflex Group Inc. now owns 1,764 shares of the investment management company's stock worth $36,000 after buying an additional 1,178 shares during the period. Finally, WFA of San Diego LLC bought a new position in shares of Ares Capital during the 2nd quarter worth approximately $36,000. Institutional investors own 27.38% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently commented on the company. Citizens Jmp cut their target price on Ares Capital from $23.00 to $22.00 and set a "market outperform" rating for the company in a research report on Wednesday, April 22nd. UBS Group cut their target price on Ares Capital from $21.00 to $19.00 and set a "neutral" rating for the company in a research report on Friday, March 13th. Keefe, Bruyette & Woods cut their target price on Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a research report on Thursday, April 16th. Wall Street Zen downgraded Ares Capital from a "hold" rating to a "sell" rating in a research report on Saturday, February 7th. Finally, Oppenheimer cut their target price on Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a research report on Wednesday, April 29th. Nine research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $20.75.

Ares Capital Price Performance

Ares Capital stock opened at $19.01 on Friday. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.40 and a quick ratio of 1.40. The company has a market capitalization of $13.65 billion, a PE ratio of 11.66 and a beta of 0.58. Ares Capital Corporation has a one year low of $17.40 and a one year high of $23.42. The business has a 50 day simple moving average of $18.51 and a 200 day simple moving average of $19.59.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its earnings results on Tuesday, April 28th. The investment management company reported $0.47 EPS for the quarter, missing the consensus estimate of $0.48 by ($0.01). Ares Capital had a return on equity of 9.85% and a net margin of 37.30%.The company had revenue of $763.00 million for the quarter, compared to the consensus estimate of $778.00 million. During the same quarter last year, the business earned $0.50 EPS. Ares Capital's quarterly revenue was up 4.2% compared to the same quarter last year. On average, sell-side analysts forecast that Ares Capital Corporation will post 1.91 EPS for the current fiscal year.

Ares Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be issued a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a yield of 10.1%. The ex-dividend date of this dividend is Monday, June 15th. Ares Capital's dividend payout ratio (DPR) is currently 117.79%.

About Ares Capital

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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