DAVENPORT & Co LLC Has $4.13 Million Stake in Ares Capital Corporation $ARCC

Key Points

• Davenport & Co LLC reduced its stake in Ares Capital Corporation by 33.0% during the 2nd quarter, now holding shares worth $4.13 million.
• Several institutional investors adjusted their stakes in Ares Capital, with notable increases from GAMMA Investing LLC and Wealthcare Advisory Partners LLC.
• Ares Capital recently paid a quarterly dividend of $0.48 per share, resulting in a 9.7% dividend yield and a payout ratio of 93.66%.

DAVENPORT & Co LLC decreased its position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 33.0% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 188,031 shares of the investment management company's stock after selling 92,745 shares during the quarter. DAVENPORT & Co LLC's holdings in Ares Capital were worth $4,129,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently modified their holdings of ARCC. GAMMA Investing LLC raised its stake in shares of Ares Capital by 2,116.0% in the 1st quarter. GAMMA Investing LLC now owns 13,274 shares of the investment management company's stock valued at $2,940,000 after purchasing an additional 12,675 shares during the period. UMB Bank n.a. acquired a new stake in shares of Ares Capital in the 1st quarter valued at about $1,172,000. First Citizens Bank & Trust Co. acquired a new stake in shares of Ares Capital in the 1st quarter valued at about $222,000. Farther Finance Advisors LLC increased its position in shares of Ares Capital by 21.0% in the first quarter. Farther Finance Advisors LLC now owns 59,698 shares of the investment management company's stock valued at $1,331,000 after acquiring an additional 10,353 shares during the last quarter. Finally, Wealthcare Advisory Partners LLC increased its position in shares of Ares Capital by 799.9% in the first quarter. Wealthcare Advisory Partners LLC now owns 120,243 shares of the investment management company's stock valued at $2,665,000 after acquiring an additional 106,881 shares during the last quarter. Institutional investors and hedge funds own 27.38% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on ARCC. Wall Street Zen raised Ares Capital from a "sell" rating to a "hold" rating in a research report on Saturday, August 16th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Ares Capital in a research report on Saturday, September 27th. Wells Fargo & Company lifted their target price on Ares Capital from $22.00 to $23.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th. JMP Securities set a $23.00 target price on Ares Capital and gave the company a "market outperform" rating in a research report on Thursday, July 31st. Finally, B. Riley raised Ares Capital from a "neutral" rating to a "buy" rating and lifted their target price for the company from $22.50 to $23.50 in a research report on Wednesday, July 30th. Eight research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $22.86.

Ares Capital Trading Down 1.3%

Ares Capital stock opened at $19.86 on Wednesday. Ares Capital Corporation has a 52 week low of $18.26 and a 52 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. The stock has a market capitalization of $14.01 billion, a P/E ratio of 9.69 and a beta of 0.68. The stock has a 50-day simple moving average of $21.81 and a 200 day simple moving average of $21.69.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The investment management company reported $0.50 EPS for the quarter, missing analysts' consensus estimates of $0.51 by ($0.01). Ares Capital had a return on equity of 10.48% and a net margin of 44.94%.The business had revenue of $614.00 million for the quarter, compared to the consensus estimate of $748.76 million. During the same quarter in the previous year, the business posted $0.61 EPS. Analysts expect that Ares Capital Corporation will post 2.19 earnings per share for the current year.

Ares Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th were issued a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.7%. The ex-dividend date was Monday, September 15th. Ares Capital's payout ratio is currently 93.66%.

Ares Capital 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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