Cwm LLC Sells 101,822 Shares of Ares Capital Corporation $ARCC

Key Points

• Cwm LLC cut its Ares Capital (ARCC) position by 31.4%, selling 101,822 shares in Q4 and now holding 222,421 shares valued at about $4.5 million.
• Ares Capital pays a quarterly dividend of $0.48 (annualized $1.92) for a 10.1% yield103.23%, indicating the dividend may exceed earnings coverage.
• Analysts carry a consensus rating of "Moderate Buy" with a $21.13 price target amid recent target cuts, while the stock trades around $19.10, below the consensus target.

Cwm LLC lessened its position in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 31.4% in the fourth quarter, according to its most recent filing with the SEC. The firm owned 222,421 shares of the investment management company's stock after selling 101,822 shares during the quarter. Cwm LLC's holdings in Ares Capital were worth $4,500,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Roman Butler Fullerton & Co. boosted its stake in shares of Ares Capital by 15.0% in the 4th quarter. Roman Butler Fullerton & Co. now owns 27,185 shares of the investment management company's stock valued at $568,000 after purchasing an additional 3,542 shares during the last quarter. Taylor Frigon Capital Management LLC raised its stake in Ares Capital by 7.5% during the fourth quarter. Taylor Frigon Capital Management LLC now owns 138,683 shares of the investment management company's stock worth $2,806,000 after buying an additional 9,625 shares during the last quarter. Annex Advisory Services LLC lifted its holdings in Ares Capital by 12.2% in the fourth quarter. Annex Advisory Services LLC now owns 11,300 shares of the investment management company's stock valued at $229,000 after buying an additional 1,231 shares during the period. Brendel Financial Advisors LLC lifted its holdings in Ares Capital by 4.8% in the fourth quarter. Brendel Financial Advisors LLC now owns 128,028 shares of the investment management company's stock valued at $2,590,000 after buying an additional 5,876 shares during the period. Finally, Prairiewood Capital LLC boosted its position in Ares Capital by 22.9% during the fourth quarter. Prairiewood Capital LLC now owns 303,282 shares of the investment management company's stock valued at $6,135,000 after acquiring an additional 56,465 shares during the last quarter. Institutional investors and hedge funds own 27.38% of the company's stock.

Analyst Upgrades and Downgrades

ARCC has been the subject of a number of recent analyst reports. Keefe, Bruyette & Woods decreased their price target on Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a report on Thursday, April 16th. Weiss Ratings reissued a "hold (c+)" rating on shares of Ares Capital in a research note on Monday, December 29th. UBS Group cut their target price on Ares Capital from $21.00 to $19.00 and set a "neutral" rating on the stock in a research report on Friday, March 13th. JPMorgan Chase & Co. decreased their target price on Ares Capital from $22.00 to $19.00 and set an "overweight" rating for the company in a research note on Friday, March 13th. Finally, B. Riley Financial reiterated a "buy" rating on shares of Ares Capital in a report on Monday, February 9th. Seven equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $21.13.

Ares Capital Trading Up 0.7%

NASDAQ:ARCC opened at $19.10 on Thursday. Ares Capital Corporation has a 12 month low of $17.40 and a 12 month high of $23.42. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.12. The stock has a market capitalization of $13.71 billion, a price-to-earnings ratio of 10.27 and a beta of 0.58. The firm has a fifty day simple moving average of $18.57 and a two-hundred day simple moving average of $19.63.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its quarterly earnings data on Wednesday, February 4th. The investment management company reported $0.50 earnings per share for the quarter, meeting the consensus estimate of $0.50. The firm had revenue of $793.00 million for the quarter, compared to analyst estimates of $795.20 million. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The business's quarterly revenue was up 4.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.55 earnings per share. Analysts expect that Ares Capital Corporation will post 1.93 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Friday, March 13th were paid 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 was Friday, March 13th. Ares Capital's dividend payout ratio is 103.23%.

Insider Activity at Ares Capital

In other news, CFO Scott C. Lem purchased 5,186 shares of the business's stock in a transaction on Friday, February 6th. The shares were acquired at an average price of $19.29 per share, for a total transaction of $100,037.94. Following the completion of the acquisition, the chief financial officer owned 39,463 shares in the company, valued at approximately $761,241.27. The trade was a 15.13% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Michael Kort Schnabel acquired 12,500 shares of Ares Capital stock in a transaction on Thursday, February 5th. The stock was purchased at an average cost of $19.13 per share, with a total value of $239,125.00. Following the purchase, the chief executive officer directly owned 40,500 shares of the company's stock, valued at approximately $774,765. This trade represents a 44.64% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.49% of the stock is currently owned by corporate insiders.

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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