Palisade Capital Management LP Invests $6.73 Million in Ares Capital Corporation $ARCC

Key Points

• Palisade Capital Management acquired 363,137 shares of Ares Capital worth approximately $6.73 million, while several other institutional investors also increased their positions. Institutions and hedge funds now own 27.38% of ARCC.
• Ares Capital reported quarterly earnings of $0.47 per share, matching analyst expectations, on revenue of $768 million. The stock opened at $19.93, with a 12-month range of $17.40 to $22.51.
• The company declared a quarterly dividend of $0.48 per share, equivalent to an annualized $1.92 payout and a 9.6% yield. Analysts maintain a consensus “Moderate Buy” rating with a $20.40 price target, despite mixed individual recommendations.

Palisade Capital Management LP acquired a new stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 363,137 shares of the investment management company's stock, valued at approximately $6,729,000. Palisade Capital Management LP owned 0.05% of Ares Capital at the end of the most recent quarter.

A number of other large investors have also modified their holdings of the company. Foresight Capital Management Advisors Inc. lifted its holdings in shares of Ares Capital by 17.2% during the 2nd quarter. Foresight Capital Management Advisors Inc. now owns 345,778 shares of the investment management company's stock worth $6,407,000 after acquiring an additional 50,624 shares during the period. Bank of New York Mellon Corp increased its stake in Ares Capital by 53.5% in the first quarter. Bank of New York Mellon Corp now owns 240,483 shares of the investment management company's stock valued at $4,333,000 after acquiring an additional 83,841 shares during the period. UBS Group AG increased its stake in Ares Capital by 41.8% in the fourth quarter. UBS Group AG now owns 11,201,905 shares of the investment management company's stock valued at $226,615,000 after acquiring an additional 3,301,890 shares during the period. Spinnaker Trust raised its position in Ares Capital by 17.0% in the fourth quarter. Spinnaker Trust now owns 1,210,941 shares of the investment management company's stock worth $24,497,000 after purchasing an additional 176,040 shares in the last quarter. Finally, iA Global Asset Management Inc. raised its position in Ares Capital by 9.7% in the fourth quarter. iA Global Asset Management Inc. now owns 901,098 shares of the investment management company's stock worth $18,229,000 after purchasing an additional 79,736 shares in the last quarter. 27.38% of the stock is currently owned by institutional investors and hedge funds.

Ares Capital Price Performance

NASDAQ:ARCC opened at $19.93 on Wednesday. The firm has a market cap of $14.31 billion, a PE ratio of 14.76 and a beta of 0.56. Ares Capital Corporation has a 12 month low of $17.40 and a 12 month high of $22.51. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.14. The company's 50-day moving average price is $18.99 and its two-hundred day moving average price is $18.82.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The investment management company reported $0.47 earnings per share for the quarter, hitting the consensus estimate of $0.47. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. The company had revenue of $768.00 million during the quarter, compared to analyst estimates of $770.19 million. During the same quarter last year, the business posted $0.50 earnings per share. On average, equities analysts anticipate that Ares Capital Corporation will post 1.91 EPS for the current fiscal year.

Ares Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be issued a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a yield of 9.6%. The ex-dividend date of this dividend is Tuesday, September 15th. Ares Capital's dividend payout ratio (DPR) is currently 142.22%.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on ARCC shares. Wells Fargo & Company reaffirmed an "equal weight" rating and set a $19.00 price objective (down from $20.00) on shares of Ares Capital in a report on Friday, June 12th. Truist Financial dropped their target price on Ares Capital from $22.00 to $21.00 and set a "buy" rating for the company in a report on Thursday, July 30th. Wall Street Zen lowered Ares Capital from a "hold" rating to a "sell" rating in a research note on Sunday, August 2nd. Weiss Ratings reiterated a "hold (c)" rating on shares of Ares Capital in a research report on Tuesday, June 9th. Finally, B. Riley Financial dropped their price objective on Ares Capital from $22.00 to $20.00 and set a "buy" rating for the company in a research note on Wednesday, April 29th. Eight equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $20.40.

About Ares Capital

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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