iA Global Asset Management Inc. Buys 79,736 Shares of Ares Capital Corporation $ARCC

Key Points

• iA Global Asset Management increased its Ares Capital stake by 9.7% in the fourth quarter, buying 79,736 shares to bring its total holdings to 901,098 shares worth about $18.2 million.
• Ares Capital reported Q1 earnings of $0.47 per share, missing estimates by $0.01, while revenue of $763 million also came in below forecasts; however, revenue still rose 4.2% from a year earlier.
• The company declared a quarterly dividend of $0.48 per share, implying a 10.2% annualized yield, even as analysts currently rate the stock a consensus Moderate Buy with a $20.75 price target.

iA Global Asset Management Inc. lifted its stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 9.7% in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 901,098 shares of the investment management company's stock after buying an additional 79,736 shares during the period. iA Global Asset Management Inc. owned about 0.13% of Ares Capital worth $18,229,000 at the end of the most recent reporting period.

Several other hedge funds have also made changes to their positions in ARCC. Canal Capital Management LLC grew its stake in Ares Capital by 1.6% in the 4th quarter. Canal Capital Management LLC now owns 32,955 shares of the investment management company's stock valued at $667,000 after buying an additional 520 shares during the last quarter. Perigon Wealth Management LLC grew its stake in Ares Capital by 1.6% in the 4th quarter. Perigon Wealth Management LLC now owns 34,700 shares of the investment management company's stock valued at $702,000 after buying an additional 547 shares during the last quarter. Balboa Wealth Partners boosted its holdings in Ares Capital by 1.3% in the 3rd quarter. Balboa Wealth Partners now owns 44,755 shares of the investment management company's stock valued at $913,000 after purchasing an additional 559 shares during the period. Diversify Advisory Services LLC boosted its holdings in Ares Capital by 2.0% in the 4th quarter. Diversify Advisory Services LLC now owns 28,186 shares of the investment management company's stock valued at $589,000 after purchasing an additional 563 shares during the period. Finally, Parallel Advisors LLC boosted its holdings in Ares Capital by 1.0% in the 3rd quarter. Parallel Advisors LLC now owns 57,092 shares of the investment management company's stock valued at $1,165,000 after purchasing an additional 567 shares during the period. Institutional investors own 27.38% of the company's stock.

Ares Capital Trading Down 0.2%

Shares of NASDAQ ARCC opened at $18.90 on Friday. 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 Corporation has a 52-week low of $17.40 and a 52-week high of $23.42. The firm has a 50 day moving average price of $18.48 and a two-hundred day moving average price of $19.55. The stock has a market cap of $13.57 billion, a P/E ratio of 11.60 and a beta of 0.58.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, missing the consensus estimate 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 company posted $0.50 earnings per share. The company's revenue was up 4.2% compared to the same quarter last year. As a group, equities analysts forecast that Ares Capital Corporation will post 1.91 EPS for the current year.

Ares Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be given a dividend of $0.48 per share. The ex-dividend date is Monday, June 15th. This represents a $1.92 annualized dividend and a dividend yield of 10.2%. Ares Capital's dividend payout ratio is 117.79%.

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. Keefe, Bruyette & Woods cut their price target on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a report on Thursday, April 16th. B. Riley Financial cut their price target on shares of Ares Capital from $22.00 to $20.00 and set a "buy" rating for the company in a report on Wednesday, April 29th. Wells Fargo & Company cut their price target on shares of Ares Capital from $21.00 to $20.00 and set an "overweight" rating for the company in a report on Thursday, February 5th. Truist Financial dropped their price objective on shares of Ares Capital from $23.00 to $22.00 and set a "buy" rating for the company in a research note on Wednesday, April 29th. Finally, Wall Street Zen downgraded shares of Ares Capital from a "hold" rating to a "sell" rating in a research note on Saturday, February 7th. Nine analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $20.75.

Ares Capital Company 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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