Evergreen Capital Management LLC Decreases Holdings in Ares Capital Corporation $ARCC

Key Points

• Evergreen Capital Management LLC reduced its stake in Ares Capital Corporation by 27.5%, selling 103,549 shares in the first quarter, bringing their total holdings to 273,038 shares valued at $6,051,000.
• Ares Capital's stock saw price revisions from analysts, with UBS Group raising its target price to $22.50, while Royal Bank Of Canada lowered it to $23.00, maintaining an "outperform" rating.
• The company announced a quarterly dividend of $0.48 per share, yielding 8.6%, with the ex-dividend date set for September 15th.

Evergreen Capital Management LLC lowered its position in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 27.5% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 273,038 shares of the investment management company's stock after selling 103,549 shares during the quarter. Evergreen Capital Management LLC's holdings in Ares Capital were worth $6,051,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also bought and sold shares of the company. Elequin Capital LP purchased a new stake in shares of Ares Capital in the 1st quarter valued at $30,000. Continuum Advisory LLC boosted its holdings in Ares Capital by 320.7% during the 1st quarter. Continuum Advisory LLC now owns 1,628 shares of the investment management company's stock valued at $36,000 after acquiring an additional 1,241 shares during the period. Investment Management Corp VA ADV boosted its holdings in Ares Capital by 193.9% during the 1st quarter. Investment Management Corp VA ADV now owns 1,828 shares of the investment management company's stock valued at $41,000 after acquiring an additional 1,206 shares during the period. PSI Advisors LLC boosted its holdings in Ares Capital by 121.1% during the 1st quarter. PSI Advisors LLC now owns 2,100 shares of the investment management company's stock valued at $47,000 after acquiring an additional 1,150 shares during the period. Finally, Archer Investment Corp lifted its position in Ares Capital by 281.3% in the first quarter. Archer Investment Corp now owns 2,440 shares of the investment management company's stock valued at $54,000 after purchasing an additional 1,800 shares during the last quarter. Hedge funds and other institutional investors own 27.38% of the company's stock.

Ares Capital Price Performance

Ares Capital stock remained flat at $22.32 during trading hours on Wednesday. 2,772,188 shares of the company's stock traded hands, compared to its average volume of 4,417,393. Ares Capital Corporation has a twelve month low of $18.26 and a twelve month high of $23.84. The company has a market cap of $15.74 billion, a PE ratio of 10.89 and a beta of 0.70. The stock has a 50-day simple moving average of $22.50 and a 200-day simple moving average of $21.92. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.14 and a quick ratio of 1.14.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its quarterly 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). 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 during the quarter, compared to analysts' expectations of $748.76 million. During the same quarter in the prior year, the firm earned $0.61 EPS. On average, research analysts expect that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Announces Dividend

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

Wall Street Analyst Weigh In

Several analysts have weighed in on ARCC shares. Royal Bank Of Canada lowered their price objective on Ares Capital from $24.00 to $23.00 and set an "outperform" rating for the company in a research report on Tuesday, May 6th. UBS Group upped their price objective on shares of Ares Capital from $22.00 to $22.50 and gave the company a "neutral" rating in a research note on Wednesday, July 16th. Wall Street Zen upgraded Ares Capital from a "sell" rating to a "hold" rating in a report on Saturday, August 16th. Wells Fargo & Company upped their price objective on shares of Ares Capital from $22.00 to $23.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Finally, B. Riley raised shares of Ares Capital from a "neutral" rating to a "buy" rating and increased their price target for the stock from $22.50 to $23.50 in a research note on Wednesday, July 30th. Seven analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, Ares Capital currently has an average rating of "Moderate Buy" and an average target price of $22.86.

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.