24,750 Shares in Ares Capital Corporation (NASDAQ:ARCC) Acquired by Pasadena Private Wealth LLC

Key Points

• Pasadena Private Wealth LLC has acquired a new position in Ares Capital Corporation, purchasing 24,750 shares valued at approximately $548,000 in the first quarter.
• Ares Capital plans to pay a quarterly dividend of $0.48 per share on September 30th, 2023, representing an annualized dividend of $1.92 and a yield of 8.48%.
• The company reported earnings per share of $0.50 for the last quarter, slightly below analysts' expectations of $0.51, along with a revenue of $614 million, which missed estimates of $748.76 million.

Pasadena Private Wealth LLC bought a new stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 24,750 shares of the investment management company's stock, valued at approximately $548,000.

A number of other institutional investors also recently bought and sold shares of ARCC. Allspring Global Investments Holdings LLC increased its position in Ares Capital by 0.7% in the first quarter. Allspring Global Investments Holdings LLC now owns 241,119 shares of the investment management company's stock worth $5,343,000 after buying an additional 1,776 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. increased its position in Ares Capital by 18.2% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 47,840 shares of the investment management company's stock worth $1,058,000 after buying an additional 7,381 shares in the last quarter. Bessemer Group Inc. grew its position in shares of Ares Capital by 23,571.4% during the first quarter. Bessemer Group Inc. now owns 3,314 shares of the investment management company's stock worth $73,000 after purchasing an additional 3,300 shares in the last quarter. GAMMA Investing LLC grew its position in shares of Ares Capital by 2,116.0% during the first quarter. GAMMA Investing LLC now owns 13,274 shares of the investment management company's stock worth $2,940,000 after purchasing an additional 12,675 shares in the last quarter. Finally, Thrivent Financial for Lutherans purchased a new stake in shares of Ares Capital during the fourth quarter worth about $314,000. Institutional investors own 27.38% of the company's stock.

Ares Capital Price Performance

NASDAQ ARCC traded down $0.24 during trading on Friday, hitting $22.39. 3,219,495 shares of the stock traded hands, compared to its average volume of 3,174,595. The company has a market capitalization of $15.79 billion, a P/E ratio of 10.92 and a beta of 0.70. The firm has a 50-day simple moving average of $22.25 and a 200-day simple moving average of $22.05. The company has a quick ratio of 1.40, a current ratio of 1.14 and a debt-to-equity ratio of 1.01. Ares Capital Corporation has a 12-month low of $18.26 and a 12-month high of $23.84.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its earnings results on Tuesday, July 29th. The investment management company reported $0.50 EPS for the quarter, missing analysts' consensus estimates of $0.51 by ($0.01). Ares Capital had a return on equity of 10.48% and a net margin of 44.94%. The company had revenue of $614.00 million during the quarter, compared to analysts' expectations of $748.76 million. During the same quarter last year, the firm posted $0.61 EPS. As a group, analysts predict that Ares Capital Corporation will post 2.19 EPS for the current year.

Ares Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be paid a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 8.6%. The ex-dividend date of this dividend is Monday, September 15th. Ares Capital's dividend payout ratio (DPR) is currently 93.66%.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on ARCC. B. Riley upgraded Ares Capital from a "neutral" rating to a "buy" rating and increased their target price for the stock from $22.50 to $23.50 in a research report on Wednesday. JPMorgan Chase & Co. cut their target price on Ares Capital from $24.50 to $22.00 and set an "overweight" rating for the company in a research report on Thursday, April 24th. Citigroup reiterated an "outperform" rating on shares of Ares Capital in a research report on Thursday. Wells Fargo & Company increased their target price on Ares Capital from $22.00 to $23.00 and gave the stock an "overweight" rating in a research report on Wednesday. Finally, Royal Bank Of Canada cut their target price on Ares Capital from $24.00 to $23.00 and set an "outperform" rating for the company in a research report on Tuesday, May 6th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and seven have assigned a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $22.86.

Ares Capital Profile

Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.