ICG Advisors LLC Takes Position in Ares Capital Corporation $ARCC

Key Points

• ICG Advisors LLC bought 298,567 shares of Ares Capital (ARCC) in Q4—about $6.11 million—making ARCC its second-largest holding at 20.4% of the firm's portfolio; overall hedge funds and institutional investors own 27.38% of the company.
• Insiders increased their stakes recently: CEO Michael Kort Schnabel purchased 12,500 shares at ~$19.13 and CFO Scott C. Lem bought 5,186 shares at ~$19.29, with insiders now owning 0.49% of the stock.
• Ares Capital pays a quarterly dividend of $0.48 (annualized $1.92) for a 10.0% yield but a payout ratio of 103.23%, and analysts hold a consensus "Moderate Buy" rating with a $21.13 target amid several recent price-target cuts.

ICG Advisors LLC purchased a new stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 298,567 shares of the investment management company's stock, valued at approximately $6,107,000. Ares Capital makes up 20.4% of ICG Advisors LLC's holdings, making the stock its 2nd biggest position.

Several other institutional investors and hedge funds also recently modified their holdings of ARCC. Partners Group Holding AG lifted its position in shares of Ares Capital by 4.8% in the third quarter. Partners Group Holding AG now owns 1,767,154 shares of the investment management company's stock valued at $36,068,000 after acquiring an additional 80,885 shares in the last quarter. International Assets Investment Management LLC raised its stake in Ares Capital by 33.9% in the 3rd quarter. International Assets Investment Management LLC now owns 275,891 shares of the investment management company's stock valued at $5,557,000 after purchasing an additional 69,844 shares during the last quarter. Investment Partners Asset Management Inc. acquired a new stake in shares of Ares Capital during the 4th quarter worth about $1,314,000. Prevail Innovative Wealth Advisors LLC purchased a new stake in shares of Ares Capital during the third quarter worth about $1,430,000. Finally, Sound Income Strategies LLC raised its position in shares of Ares Capital by 5.6% in the fourth quarter. Sound Income Strategies LLC now owns 2,616,789 shares of the investment management company's stock valued at $54,691,000 after buying an additional 138,857 shares during the last quarter. Hedge funds and other institutional investors own 27.38% of the company's stock.

Insiders Place Their Bets

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

Analyst Upgrades and Downgrades

Several analysts have commented on ARCC shares. JPMorgan Chase & Co. lowered their target price on shares of Ares Capital from $22.00 to $19.00 and set an "overweight" rating for the company in a research note on Friday, March 13th. Wells Fargo & Company lowered their price objective on Ares Capital from $21.00 to $20.00 and set an "overweight" rating for the company in a research report on Thursday, February 5th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Ares Capital in a research note on Monday, December 29th. Royal Bank Of Canada decreased their price target on Ares Capital from $23.00 to $22.00 and set an "outperform" rating on the stock in a research note on Monday, February 9th. Finally, Wall Street Zen cut Ares Capital from a "hold" rating to a "sell" rating in a report on Saturday, February 7th. Seven research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $21.13.

Ares Capital Stock Performance

NASDAQ:ARCC opened at $19.12 on Thursday. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.12. Ares Capital Corporation has a 1 year low of $17.40 and a 1 year high of $23.42. The firm's fifty day simple moving average is $18.57 and its 200 day simple moving average is $19.63. The firm has a market capitalization of $13.73 billion, a PE ratio of 10.27 and a beta of 0.58.

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 (EPS) for the quarter, hitting the consensus estimate of $0.50. The business had revenue of $793.00 million for the quarter, compared to the consensus estimate of $795.20 million. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. Ares Capital's quarterly revenue was up 4.5% on a year-over-year basis. During the same quarter last year, the company posted $0.55 earnings per share. On average, sell-side analysts anticipate that Ares Capital Corporation will post 1.93 EPS for the current year.

Ares Capital Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th were issued a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 10.0%. The ex-dividend date was Friday, March 13th. Ares Capital's payout ratio is 103.23%.

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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