Icon Advisers Inc. Co. Acquires New Holdings in Ares Capital Corporation $ARCC

Key Points

• Icon Advisers Inc. Co. bought a new stake of 169,856 shares in Ares Capital Corporation (NASDAQ:ARCC) during the third quarter, valued at about $3.47 million.
• Ares Capital declared a quarterly dividend of $0.48 (annualized $1.92), implying a 10.2% yield with an ex-dividend date of March 13 and a dividend payout ratio of 103.23%.
• Insiders increased their positions: CEO Michael Kort Schnabel bought 12,500 shares and CFO Scott C. Lem bought 5,186 shares in early February, raising their ownership stakes substantially.

Icon Advisers Inc. Co. bought a new stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 169,856 shares of the investment management company's stock, valued at approximately $3,467,000.

Other hedge funds also recently bought and sold shares of the company. City Holding Co. boosted its position in shares of Ares Capital by 444.4% during the third quarter. City Holding Co. now owns 1,225 shares of the investment management company's stock worth $25,000 after purchasing an additional 1,000 shares in the last quarter. NBT Bank N A NY acquired a new position in shares of Ares Capital in the 3rd quarter valued at $31,000. WFA of San Diego LLC bought a new stake in shares of Ares Capital in the 2nd quarter valued at $36,000. Root Financial Partners LLC bought a new stake in shares of Ares Capital in the 3rd quarter valued at $41,000. Finally, MTM Investment Management LLC acquired a new stake in Ares Capital during the 2nd quarter worth $55,000. 27.38% of the stock is currently owned by institutional investors and hedge funds.

Ares Capital Trading Down 1.3%

ARCC opened at $18.75 on Friday. The stock has a market capitalization of $13.46 billion, a P/E ratio of 10.08 and a beta of 0.59. 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 12 month low of $18.17 and a 12 month high of $23.42. The firm's fifty day simple moving average is $19.89 and its 200 day simple moving average is $20.42.

Ares Capital (NASDAQ:ARCC - Get Free Report) last released its earnings results on Wednesday, February 4th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.50. Ares Capital had a return on equity of 9.89% and a net margin of 42.56%.The firm had revenue of $793.00 million during the quarter, compared to analysts' expectations of $795.20 million. During the same quarter in the prior year, the company earned $0.55 EPS. The company's revenue was up 4.5% on a year-over-year basis. As a group, research analysts anticipate that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 13th will be issued a dividend of $0.48 per share. The ex-dividend date is Friday, March 13th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 10.2%. Ares Capital's dividend payout ratio (DPR) is presently 103.23%.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on ARCC shares. B. Riley Financial reiterated a "buy" rating on shares of Ares Capital in a report on Monday, February 9th. Royal Bank Of Canada lowered their price target on Ares Capital from $23.00 to $22.00 and set an "outperform" rating for the company in a report on Monday, February 9th. Wells Fargo & Company dropped their price target on Ares Capital from $21.00 to $20.00 and set an "overweight" rating on the stock in a research report on Thursday, February 5th. Wall Street Zen cut Ares Capital from a "hold" rating to a "sell" rating in a report on Saturday, February 7th. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of Ares Capital in a research report on Monday, December 29th. Seven equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $22.00.

Insider Transactions at Ares Capital

In other news, CFO Scott C. Lem acquired 5,186 shares of the firm's stock in a transaction that occurred on Friday, February 6th. The stock was acquired at an average cost of $19.29 per share, for a total transaction of $100,037.94. Following the completion of the acquisition, the chief financial officer owned 39,463 shares in the company, valued at $761,241.27. This represents a 15.13% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Michael Kort Schnabel bought 12,500 shares of the company's stock in a transaction that occurred on Thursday, February 5th. The stock was purchased at an average cost of $19.13 per share, for a total transaction of $239,125.00. Following the transaction, the chief executive officer owned 40,500 shares in the company, valued at $774,765. The trade was a 44.64% increase in their position. The SEC filing for this purchase provides additional information. 0.48% of the stock is currently owned by company insiders.

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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