Prevail Innovative Wealth Advisors LLC Makes New Investment in Ares Capital Corporation $ARCC

Key Points

• Prevail Innovative Wealth Advisors purchased 70,047 shares of Ares Capital (≈$1.43M) in Q3, while major institutions — notably Invesco (up 825%), JPMorgan, Bank of America and OMERS — materially increased positions, leaving institutional investors with about 27.38% ownership.
• Ares Capital declared a quarterly dividend of $0.48 (annualized $1.92), representing a 10.2% yield with a payout ratio of 103.23%; the ex-dividend date is March 13 and the dividend will be paid March 31.
• Company insiders (CFO and CEO) bought shares in February, and Ares is trading near $18.75 with a P/E of 10.08 and $13.46B market cap; analysts' consensus is a "Moderate Buy" with a $22 target after mixed quarterly results (EPS $0.50, revenue slightly below estimates).

Prevail Innovative Wealth Advisors LLC purchased a new stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) in the third quarter, according to its most recent 13F filing with the SEC. The fund purchased 70,047 shares of the investment management company's stock, valued at approximately $1,430,000.

Several other institutional investors have also recently made changes to their positions in the company. Invesco Ltd. raised its position in shares of Ares Capital by 825.4% in the second quarter. Invesco Ltd. now owns 3,551,711 shares of the investment management company's stock worth $77,996,000 after buying an additional 3,167,906 shares in the last quarter. JPMorgan Chase & Co. grew its position in Ares Capital by 18.6% during the second quarter. JPMorgan Chase & Co. now owns 6,404,876 shares of the investment management company's stock worth $140,651,000 after buying an additional 1,006,460 shares in the last quarter. OMERS ADMINISTRATION Corp grew its position in Ares Capital by 56.9% during the second quarter. OMERS ADMINISTRATION Corp now owns 2,342,324 shares of the investment management company's stock worth $51,437,000 after buying an additional 849,097 shares in the last quarter. Bank of America Corp DE increased its stake in Ares Capital by 8.9% in the 2nd quarter. Bank of America Corp DE now owns 8,678,129 shares of the investment management company's stock worth $190,572,000 after acquiring an additional 705,882 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC bought a new position in Ares Capital in the 1st quarter worth about $14,766,000. Institutional investors own 27.38% of the company's stock.

Ares Capital Trading Down 1.3%

Shares of ARCC stock opened at $18.75 on Monday. The business has a 50-day moving average price of $19.89 and a two-hundred day moving average price of $20.39. Ares Capital Corporation has a 12-month low of $18.17 and a 12-month high of $23.42. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 1.12. The firm has a market cap of $13.46 billion, a P/E ratio of 10.08 and a beta of 0.59.

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

Ares Capital Announces Dividend

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

Analysts Set New Price Targets

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

Insider Buying and Selling

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

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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