Kestra Advisory Services LLC Cuts Stock Holdings in Ares Capital Corporation $ARCC

Key Points

• Kestra Advisory Services LLC cut its Ares Capital stake by 12.7% in Q1, selling 56,211 shares and ending with 386,705 shares worth about $6.97 million.
• Ares Capital reported Q1 earnings of $0.47 per share, slightly below estimates, while revenue came in at $763 million versus the expected $778 million.
• The company paid a quarterly dividend of $0.48 per share, implying an annualized yield of about 10.2%, though its payout ratio is elevated at 117.79%.

Kestra Advisory Services LLC reduced its stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 12.7% during the first quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 386,705 shares of the investment management company's stock after selling 56,211 shares during the period. Kestra Advisory Services LLC owned approximately 0.05% of Ares Capital worth $6,968,000 as of its most recent SEC filing.

Several other hedge funds have also bought and sold shares of the stock. Palladiem LLC bought a new stake in shares of Ares Capital in the fourth quarter worth about $26,000. SWAN Capital LLC bought a new position in Ares Capital during the third quarter valued at approximately $27,000. Sankala Group LLC purchased a new position in Ares Capital during the 4th quarter valued at approximately $28,000. Core Wealth Advisors LLC purchased a new position in Ares Capital during the 4th quarter valued at approximately $33,000. Finally, Quarry LP purchased a new position in Ares Capital during the 3rd quarter valued at approximately $33,000. Hedge funds and other institutional investors own 27.38% of the company's stock.

Ares Capital Trading Up 0.8%

Shares of ARCC stock opened at $18.79 on Wednesday. The company has a market cap of $13.49 billion, a PE ratio of 11.53 and a beta of 0.56. Ares Capital Corporation has a 1 year low of $17.40 and a 1 year high of $23.42. The stock's 50 day simple moving average is $18.65 and its two-hundred day simple moving average is $19.03. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.40 and a quick 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 EPS for the quarter, missing analysts' consensus estimates of $0.48 by ($0.01). The company had revenue of $763.00 million during the quarter, compared to analysts' expectations of $778.00 million. Ares Capital had a return on equity of 9.85% and a net margin of 37.30%.Ares Capital's revenue for the quarter was up 4.2% compared to the same quarter last year. During the same quarter last year, the firm posted $0.50 EPS. Research analysts predict that Ares Capital Corporation will post 1.9 earnings per share for the current year.

Ares Capital Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were given a $0.48 dividend. The ex-dividend date was Monday, June 15th. This represents a $1.92 dividend on an annualized basis and a yield of 10.2%. Ares Capital's dividend payout ratio (DPR) is currently 117.79%.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on ARCC shares. Citizens Jmp decreased their price objective on Ares Capital from $23.00 to $22.00 and set a "market outperform" rating on the stock in a report on Wednesday, April 22nd. JPMorgan Chase & Co. cut their target price on shares of Ares Capital from $19.00 to $18.50 and set an "overweight" rating for the company in a report on Thursday, July 2nd. Wells Fargo & Company restated an "equal weight" rating and issued a $19.00 price target (down from $20.00) on shares of Ares Capital in a research report on Friday, June 12th. B. Riley Financial decreased their price target on shares of Ares Capital from $22.00 to $20.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Finally, Royal Bank Of Canada lowered their price objective on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a research report on Wednesday, April 29th. Eight research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, Ares Capital currently has an average rating of "Moderate Buy" and a consensus price target of $20.60.

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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