Tectonic Advisors LLC Acquires 67,202 Shares of Ares Capital Corporation $ARCC

Key Points

• Tectonic Advisors LLC increased its stake in Ares Capital Corporation by 14.4%, acquiring an additional 67,202 shares, bringing their total to 535,155 shares.
• Ares Capital announced a quarterly dividend of $0.48, yielding 9.8% annually, with a payout ratio of 93.66%.
• Despite missing earnings estimates with $0.50 EPS, Ares Capital has received upgraded price targets from multiple brokerages, now averaging around $22.86.

Tectonic Advisors LLC grew its holdings in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 14.4% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 535,155 shares of the investment management company's stock after buying an additional 67,202 shares during the period. Ares Capital accounts for approximately 0.7% of Tectonic Advisors LLC's holdings, making the stock its 29th biggest position. Tectonic Advisors LLC owned 0.08% of Ares Capital worth $11,752,000 at the end of the most recent quarter.

A number of other hedge funds have also recently modified their holdings of ARCC. GAMMA Investing LLC boosted its holdings in shares of Ares Capital by 2,116.0% during the 1st quarter. GAMMA Investing LLC now owns 13,274 shares of the investment management company's stock valued at $2,940,000 after buying an additional 12,675 shares in the last quarter. First Citizens Bank & Trust Co. purchased a new position in shares of Ares Capital in the 1st quarter worth about $222,000. Farther Finance Advisors LLC boosted its stake in Ares Capital by 21.0% in the 1st quarter. Farther Finance Advisors LLC now owns 59,698 shares of the investment management company's stock worth $1,331,000 after purchasing an additional 10,353 shares in the last quarter. Wealthcare Advisory Partners LLC boosted its stake in Ares Capital by 799.9% in the 1st quarter. Wealthcare Advisory Partners LLC now owns 120,243 shares of the investment management company's stock worth $2,665,000 after purchasing an additional 106,881 shares in the last quarter. Finally, SG Americas Securities LLC boosted its stake in Ares Capital by 2.8% in the 1st quarter. SG Americas Securities LLC now owns 24,361 shares of the investment management company's stock worth $540,000 after purchasing an additional 666 shares in the last quarter. Institutional investors own 27.38% of the company's stock.

Ares Capital Price Performance

Shares of NASDAQ:ARCC opened at $19.67 on Thursday. Ares Capital Corporation has a fifty-two week low of $18.26 and a fifty-two week high of $23.84. The business has a 50-day simple moving average of $21.75 and a two-hundred day simple moving average of $21.67. The company has a debt-to-equity ratio of 1.01, a quick ratio of 1.14 and a current ratio of 1.14. The firm has a market cap of $13.87 billion, a price-to-earnings ratio of 9.60 and a beta of 0.68.

Ares Capital (NASDAQ:ARCC - Get Free Report) last issued its earnings results on Tuesday, July 29th. The investment management company reported $0.50 earnings per share 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 business had revenue of $614.00 million during the quarter, compared to analysts' expectations of $748.76 million. During the same period last year, the firm posted $0.61 EPS. On average, analysts expect that Ares Capital Corporation will post 2.19 earnings per share for the current year.

Ares Capital Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th were paid a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 9.8%. The ex-dividend date was Monday, September 15th. Ares Capital's dividend payout ratio is 93.66%.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on ARCC. Keefe, Bruyette & Woods upped their price target on shares of Ares Capital from $22.00 to $23.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 30th. UBS Group upped their price target on shares of Ares Capital from $22.00 to $22.50 and gave the stock a "neutral" rating in a research note on Wednesday, July 16th. Weiss Ratings reiterated a "buy (b)" rating on shares of Ares Capital in a research note on Wednesday. Wells Fargo & Company upped their price target on shares of Ares Capital from $22.00 to $23.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 30th. Finally, Wall Street Zen upgraded shares of Ares Capital from a "sell" rating to a "hold" rating in a research note on Saturday, August 16th. Eight equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, 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.

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