Spinnaker Trust Raises Stock Position in Ares Capital Corporation $ARCC

Key Points

• Spinnaker Trust boosted its stake in Ares Capital by 17% in the fourth quarter, adding 176,040 shares and bringing its total holding to 1,210,941 shares worth about $24.5 million.
• Ares Capital recently reported mixed quarterly results, with EPS of $0.47 missing estimates by a penny and revenue of $763 million falling short of expectations, though revenue still rose 4.2% year over year.
• The company declared a quarterly dividend of $0.48 per share, equal to an annualized yield of 10.1%, while analysts currently rate the stock a “Moderate Buy” with an average target price of $20.75.

Spinnaker Trust increased its position in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 17.0% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 1,210,941 shares of the investment management company's stock after buying an additional 176,040 shares during the period. Ares Capital comprises about 1.3% of Spinnaker Trust's portfolio, making the stock its 17th biggest position. Spinnaker Trust owned 0.17% of Ares Capital worth $24,497,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in ARCC. AQR Capital Management LLC raised its holdings in shares of Ares Capital by 6.5% in the 1st quarter. AQR Capital Management LLC now owns 16,502 shares of the investment management company's stock valued at $365,000 after purchasing an additional 1,000 shares in the last quarter. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Ares Capital in the 1st quarter valued at $273,000. Goldman Sachs Group Inc. raised its holdings in shares of Ares Capital by 14.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,835,007 shares of the investment management company's stock valued at $62,824,000 after purchasing an additional 358,829 shares in the last quarter. Empowered Funds LLC raised its holdings in shares of Ares Capital by 139.9% in the 1st quarter. Empowered Funds LLC now owns 27,655 shares of the investment management company's stock valued at $613,000 after purchasing an additional 16,128 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new stake in shares of Ares Capital in the 1st quarter valued at $14,766,000. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

Ares Capital Price Performance

ARCC stock opened at $19.07 on Tuesday. The company has a market capitalization of $13.69 billion, a P/E ratio of 11.70 and a beta of 0.58. Ares Capital Corporation has a twelve month low of $17.40 and a twelve month high of $23.42. The business has a 50 day simple moving average of $18.57 and a 200-day simple moving average of $19.42. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 1.13.

Ares Capital (NASDAQ:ARCC - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The investment management company reported $0.47 EPS for the quarter, missing the consensus estimate of $0.48 by ($0.01). Ares Capital had a return on equity of 9.85% and a net margin of 37.30%.The company had revenue of $763.00 million for the quarter, compared to analysts' expectations of $778.00 million. During the same quarter last year, the company earned $0.50 EPS. Ares Capital's revenue for the quarter was up 4.2% compared to the same quarter last year. As a group, equities analysts anticipate that Ares Capital Corporation will post 1.91 EPS for the current year.

Ares Capital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be paid a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 10.1%. The ex-dividend date is Monday, June 15th. Ares Capital's dividend payout ratio is 117.79%.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. Keefe, Bruyette & Woods lowered their price target on Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a report on Thursday, April 16th. Wall Street Zen downgraded Ares Capital from a "hold" rating to a "sell" rating in a report on Saturday, February 7th. B. Riley Financial lowered their price target on Ares Capital from $22.00 to $20.00 and set a "buy" rating for the company in a report on Wednesday, April 29th. Truist Financial lowered their price target on Ares Capital from $23.00 to $22.00 and set a "buy" rating for the company in a report on Wednesday, April 29th. Finally, Oppenheimer lowered their price target on Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a report on Wednesday, April 29th. Nine investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, Ares Capital has an average rating of "Moderate Buy" and a consensus target price of $20.75.

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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