Prairiewood Capital LLC Purchases 56,465 Shares of Ares Capital Corporation $ARCC

Key Points

• Prairiewood Capital raised its Ares Capital (ARCC) stake by 22.9%, buying 56,465 shares to hold 303,282 shares worth about $6.14 million, making ARCC its 17th-largest position.
• Ares Capital pays a quarterly dividend of $0.48 (annualized $1.92) for a 10.3% yield
• Company insiders increased holdings in February: CEO Michael Kort Schnabel bought 12,500 shares and CFO Scott C. Lem bought 5,186 shares, materially boosting their ownership stakes.

Prairiewood Capital LLC grew its position in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 22.9% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 303,282 shares of the investment management company's stock after buying an additional 56,465 shares during the period. Ares Capital makes up 1.9% of Prairiewood Capital LLC's holdings, making the stock its 17th biggest position. Prairiewood Capital LLC's holdings in Ares Capital were worth $6,135,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. City Holding Co. increased its position in Ares Capital by 444.4% during the 3rd quarter. City Holding Co. now owns 1,225 shares of the investment management company's stock worth $25,000 after buying an additional 1,000 shares during the period. SWAN Capital LLC bought a new position in Ares Capital during the 3rd quarter worth $27,000. NBT Bank N A NY bought a new position in Ares Capital during the 3rd quarter worth $31,000. Quarry LP bought a new position in Ares Capital during the 3rd quarter worth $33,000. Finally, WFA of San Diego LLC bought a new stake in shares of Ares Capital during the 2nd quarter valued at $36,000. Institutional investors own 27.38% of the company's stock.

Ares Capital Stock Performance

ARCC opened at $18.63 on Wednesday. The firm has a market cap of $13.38 billion, a P/E ratio of 10.02 and a beta of 0.58. Ares Capital Corporation has a 52-week low of $17.40 and a 52-week high of $23.42. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.70 and a current ratio of 1.70. The business's fifty day moving average is $18.63 and its 200-day moving average is $19.69.

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 for the quarter, hitting the consensus estimate of $0.50. Ares Capital had a return on equity of 9.89% and a net margin of 42.56%.The business had revenue of $793.00 million during the quarter, compared to the consensus estimate of $795.20 million. During the same period in the prior year, the company earned $0.55 EPS. Ares Capital's revenue for the quarter was up 4.5% on a year-over-year basis. Sell-side analysts expect that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Friday, March 13th were given a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 10.3%. The ex-dividend date was Friday, March 13th. Ares Capital's dividend payout ratio is currently 103.23%.

Insider Buying and Selling at Ares Capital

In other Ares Capital news, CEO Michael Kort Schnabel acquired 12,500 shares of the company's stock in a transaction that occurred on Thursday, February 5th. The stock was acquired at an average cost of $19.13 per share, for a total transaction of $239,125.00. Following the transaction, the chief executive officer directly owned 40,500 shares in the company, valued at $774,765. This represents a 44.64% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Scott C. Lem acquired 5,186 shares of the company's stock in a transaction that occurred on Friday, February 6th. The shares were acquired at an average price of $19.29 per share, with a total value of $100,037.94. Following the completion of the transaction, the chief financial officer owned 39,463 shares in the company, valued at $761,241.27. The trade was a 15.13% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.49% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

ARCC has been the topic of several analyst reports. JPMorgan Chase & Co. reduced their target price on Ares Capital from $22.00 to $19.00 and set an "overweight" rating on the stock in a report on Friday, March 13th. Weiss Ratings reissued a "hold (c+)" rating on shares of Ares Capital in a report on Monday, December 29th. UBS Group reduced their target price on Ares Capital from $21.00 to $19.00 and set a "neutral" rating on the stock in a report on Friday, March 13th. Royal Bank Of Canada reduced their target price on Ares Capital from $23.00 to $22.00 and set an "outperform" rating on the stock in a report on Monday, February 9th. Finally, Wall Street Zen lowered Ares Capital from a "hold" rating to a "sell" rating in a report on Saturday, February 7th. Seven analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $21.38.

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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