CW Advisors LLC Buys 280,973 Shares of Ares Capital Corporation $ARCC

Key Points

• CW Advisors LLC increased its stake in Ares Capital by 196.7%, acquiring an additional 280,973 shares, bringing its total holdings to 423,845 shares valued at approximately $9.39 million.
• Ares Capital reported a loss in its most recent earnings, with earnings per share of $0.50, missing expectations by $0.01, and revenue falling short at $614 million compared to forecasts of $748.76 million.
• The investment firm disclosed a new quarterly dividend of $0.48 per share, representing an annual yield of 8.6%, with an ex-dividend date set for September 15th.

CW Advisors LLC boosted its stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 196.7% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 423,845 shares of the investment management company's stock after purchasing an additional 280,973 shares during the period. CW Advisors LLC owned about 0.06% of Ares Capital worth $9,389,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the business. Venture Visionary Partners LLC increased its holdings in Ares Capital by 6.2% during the first quarter. Venture Visionary Partners LLC now owns 26,672 shares of the investment management company's stock valued at $591,000 after buying an additional 1,568 shares during the last quarter. Credit Agricole S A increased its holdings in Ares Capital by 55.7% during the first quarter. Credit Agricole S A now owns 772,219 shares of the investment management company's stock valued at $17,112,000 after buying an additional 276,293 shares during the last quarter. Texas Capital Bancshares Inc TX purchased a new stake in Ares Capital during the first quarter valued at approximately $988,000. Texas Capital Bank Wealth Management Services Inc increased its holdings in Ares Capital by 7.9% during the first quarter. Texas Capital Bank Wealth Management Services Inc now owns 166,924 shares of the investment management company's stock valued at $3,699,000 after buying an additional 12,190 shares during the last quarter. Finally, M Holdings Securities Inc. increased its holdings in Ares Capital by 1.9% during the first quarter. M Holdings Securities Inc. now owns 50,563 shares of the investment management company's stock valued at $1,120,000 after buying an additional 951 shares during the last quarter. 27.38% of the stock is owned by hedge funds and other institutional investors.

Ares Capital Stock Performance

ARCC opened at $22.32 on Friday. The stock has a market capitalization of $15.74 billion, a price-to-earnings ratio of 10.89 and a beta of 0.70. The company has a fifty day moving average of $22.38 and a 200 day moving average of $21.96. Ares Capital Corporation has a fifty-two week low of $18.26 and a fifty-two week high of $23.84. The company has a debt-to-equity ratio of 1.01, a quick ratio of 1.14 and a current ratio of 1.14.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted 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 company had revenue of $614.00 million for 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 period in the previous year, the business posted $0.61 earnings per share. As a group, sell-side analysts forecast that Ares Capital Corporation will post 2.19 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

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

Wall Street Analyst Weigh In

ARCC has been the subject of a number of research reports. Citigroup reaffirmed an "outperform" rating on shares of Ares Capital in a report on Thursday, July 31st. Royal Bank Of Canada reduced their target price on shares of Ares Capital from $24.00 to $23.00 and set an "outperform" rating for the company in a report on Tuesday, May 6th. Wall Street Zen raised shares of Ares Capital from a "sell" rating to a "hold" rating in a report on Saturday, August 16th. UBS Group increased their price objective on shares of Ares Capital from $22.00 to $22.50 and gave the stock a "neutral" rating in a research note on Wednesday, July 16th. Finally, 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. Seven research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $22.86.

Ares Capital Company 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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