Denali Advisors LLC Has $7.94 Million Stock Position in Ares Capital Corporation $ARCC

Key Points

• Denali Advisors LLC cut its Ares Capital stake by 12% in the fourth quarter, selling 53,677 shares and leaving it with 392,429 shares valued at about $7.94 million.
• Analyst sentiment remains mostly positive, with nine Buy ratings and two Hold ratings; the consensus price target is $20.75, even as several firms trimmed their targets.
• Ares Capital reported Q1 earnings of $0.47 per share, slightly below estimates, and announced a quarterly dividend of $0.48, implying a 10.1% yield.

Denali Advisors LLC decreased its stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 12.0% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 392,429 shares of the investment management company's stock after selling 53,677 shares during the period. Ares Capital makes up 0.9% of Denali Advisors LLC's portfolio, making the stock its 17th largest holding. Denali Advisors LLC owned approximately 0.05% of Ares Capital worth $7,939,000 as of its most recent SEC filing.

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

Wall Street Analysts Forecast Growth

Several research analysts recently commented on ARCC shares. JPMorgan Chase & Co. reduced their target price on Ares Capital from $22.00 to $19.00 and set an "overweight" rating for the company in a research report on Friday, March 13th. Wall Street Zen cut Ares Capital from a "hold" rating to a "sell" rating in a research report on Saturday, February 7th. B. Riley Financial reduced their target price on Ares Capital from $22.00 to $20.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. Oppenheimer cut their price objective on Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a report on Wednesday, April 29th. Finally, Royal Bank Of Canada cut their price objective on Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a report on Wednesday, April 29th. Nine equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $20.75.

Ares Capital Stock Up 0.3%

Shares of NASDAQ ARCC opened at $19.01 on Friday. The stock has a market cap of $13.65 billion, a PE ratio of 11.66 and a beta of 0.58. The business has a fifty day moving average of $18.51 and a two-hundred day moving average of $19.59. Ares Capital Corporation has a 52-week low of $17.40 and a 52-week high of $23.42. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.40 and a current ratio of 1.40.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its earnings results on Tuesday, April 28th. The investment management company reported $0.47 earnings per share for the quarter, missing analysts' consensus estimates of $0.48 by ($0.01). Ares Capital had a net margin of 37.30% and a return on equity of 9.85%. The business had revenue of $763.00 million during the quarter, compared to analyst estimates of $778.00 million. During the same quarter last year, the business posted $0.50 earnings per share. The business's quarterly revenue was up 4.2% compared to the same quarter last year. As a group, equities research analysts expect that Ares Capital Corporation will post 1.91 earnings per share for the current fiscal year.

Ares Capital Dividend Announcement

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

Ares Capital Profile

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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