Ticino Wealth Purchases New Holdings in Ares Capital Corporation $ARCC

Key Points

• Ticino Wealth bought a new position in Ares Capital (NASDAQ: ARCC) of 133,150 shares worth about $2.69 million in Q4, adding to other modest institutional buys that leave institutions owning ~27.4% of the stock.
• Ares Capital recently paid a quarterly dividend of $0.48 ($1.92 annualized), implying a 10.0% yield
• The company reported Q4 EPS of $0.50 (in line with estimates) and revenue up 4.5% year-over-year; analysts' consensus is a Moderate Buy with an average price target of $21.25 despite several recent downward revisions.

Ticino Wealth bought a new stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 133,150 shares of the investment management company's stock, valued at approximately $2,694,000.

Other large investors have also recently added to or reduced their stakes in the company. Canal Capital Management LLC raised its holdings in shares of Ares Capital by 1.6% in the 4th quarter. Canal Capital Management LLC now owns 32,955 shares of the investment management company's stock valued at $667,000 after buying an additional 520 shares during the period. BKM Wealth Management LLC raised its stake in shares of Ares Capital by 1.3% in the third quarter. BKM Wealth Management LLC now owns 42,394 shares of the investment management company's stock valued at $865,000 after acquiring an additional 525 shares in the last quarter. Perigon Wealth Management LLC raised its position in Ares Capital by 1.6% in the 4th quarter. Perigon Wealth Management LLC now owns 34,700 shares of the investment management company's stock valued at $702,000 after purchasing an additional 547 shares in the last quarter. Balboa Wealth Partners grew its holdings in Ares Capital by 1.3% during the 3rd quarter. Balboa Wealth Partners now owns 44,755 shares of the investment management company's stock worth $913,000 after acquiring an additional 559 shares in the last quarter. Finally, Diversify Advisory Services LLC increased its position in shares of Ares Capital by 2.0% in the 4th quarter. Diversify Advisory Services LLC now owns 28,186 shares of the investment management company's stock valued at $589,000 after purchasing an additional 563 shares during the last quarter. 27.38% of the stock is currently owned by institutional investors and hedge funds.

Ares Capital Price Performance

Shares of NASDAQ ARCC opened at $19.21 on Tuesday. The firm has a market capitalization of $13.80 billion, a P/E ratio of 10.30 and a beta of 0.58. Ares Capital Corporation has a one year low of $17.40 and a one year high of $23.42. The company's fifty day moving average is $18.61 and its two-hundred day moving average is $19.65. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.70 and a current ratio of 1.70.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its quarterly earnings results on Wednesday, February 4th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.50. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The business had revenue of $793.00 million during the quarter, compared to the consensus estimate of $795.20 million. During the same quarter last year, the firm posted $0.55 EPS. The business's revenue was up 4.5% compared to the same quarter last year. Analysts forecast that Ares Capital Corporation will post 1.93 EPS for the current fiscal year.

Ares Capital Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Friday, March 13th were given a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 10.0%. The ex-dividend date was Friday, March 13th. Ares Capital's dividend payout ratio is presently 103.23%.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on ARCC. Royal Bank Of Canada cut their target price on Ares Capital from $23.00 to $22.00 and set an "outperform" rating on the stock in a research report on Monday, February 9th. Wall Street Zen cut Ares Capital from a "hold" rating to a "sell" rating in a research report on Saturday, February 7th. Keefe, Bruyette & Woods reduced their target price on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a research note on Thursday, April 16th. Weiss Ratings reissued a "hold (c+)" rating on shares of Ares Capital in a report on Monday, December 29th. Finally, JPMorgan Chase & Co. lowered their price objective on Ares Capital from $22.00 to $19.00 and set an "overweight" rating on the stock in a report on Friday, March 13th. Seven equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $21.25.

Insider Transactions at Ares Capital

In other news, CFO Scott C. Lem purchased 5,186 shares of the stock in a transaction that occurred on Friday, February 6th. The shares were acquired at an average price of $19.29 per share, for a total transaction of $100,037.94. Following the acquisition, the chief financial officer directly owned 39,463 shares in the company, valued at approximately $761,241.27. The trade was a 15.13% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Michael Kort Schnabel bought 12,500 shares of the firm's stock in a transaction on Thursday, February 5th. The shares were purchased at an average price of $19.13 per share, for a total transaction of $239,125.00. Following the completion of the transaction, the chief executive officer owned 40,500 shares of the company's stock, valued at $774,765. This represents a 44.64% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 0.49% of the company's stock.

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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