Whittier Trust Co. Acquires New Position in Ares Capital Corporation $ARCC

Key Points

• Whittier Trust acquired a new position in Ares Capital (ARCC) of 85,383 shares valued at about $1.76 million in Q4, joining other institutions that added or initiated stakes.
• Insiders boosted their holdings: CFO Scott C. Lem bought 5,186 shares and CEO Michael K. Schnabel bought 12,500 shares in early February, increasing their ownership by roughly 15% and 45%, respectively.
• Dividend: Ares declared a $0.48 quarterly payout (annualized $1.92) for a ~10.1% yield, but its payout ratio is elevated at about 103%, indicating potential sustainability concerns.

Whittier Trust Co. acquired a new stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 85,383 shares of the investment management company's stock, valued at approximately $1,758,000.

A number of other institutional investors have also recently made changes to their positions in the business. J.M. Arbour LLC purchased a new position in Ares Capital in the fourth quarter worth approximately $1,141,000. Independent Wealth Network Inc. lifted its stake in Ares Capital by 5.3% in the fourth quarter. Independent Wealth Network Inc. now owns 53,241 shares of the investment management company's stock worth $1,077,000 after acquiring an additional 2,673 shares during the last quarter. Private Trust Co. NA lifted its stake in Ares Capital by 16.4% in the fourth quarter. Private Trust Co. NA now owns 30,573 shares of the investment management company's stock worth $618,000 after acquiring an additional 4,314 shares during the last quarter. Key Capital Management INC purchased a new position in Ares Capital in the fourth quarter worth approximately $154,000. Finally, Mirae Asset Global Investments Co. Ltd. purchased a new position in Ares Capital in the fourth quarter worth approximately $84,000. Institutional investors and hedge funds own 27.38% of the company's stock.

Insider Buying and Selling at Ares Capital

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

Analyst Upgrades and Downgrades

ARCC has been the subject of a number of recent research reports. UBS Group decreased their price target on shares of Ares Capital from $21.00 to $19.00 and set a "neutral" rating for the company in a research note on Friday, March 13th. B. Riley Financial reiterated a "buy" rating on shares of Ares Capital in a research note on Monday, February 9th. Royal Bank Of Canada reduced their price objective on shares of Ares Capital from $23.00 to $22.00 and set an "outperform" rating for the company in a research report on Monday, February 9th. Wells Fargo & Company reduced their price objective on shares of Ares Capital from $21.00 to $20.00 and set an "overweight" rating for the company in a research report on Thursday, February 5th. Finally, Wall Street Zen downgraded shares of Ares Capital from a "hold" rating to a "sell" rating in a research report on Saturday, February 7th. Seven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, Ares Capital presently has an average rating of "Moderate Buy" and a consensus target price of $21.25.

Ares Capital Stock Up 1.7%

Shares of NASDAQ:ARCC opened at $19.09 on Friday. The company has a market capitalization of $13.71 billion, a PE ratio of 10.26 and a beta of 0.58. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.12. Ares Capital Corporation has a twelve month low of $17.40 and a twelve month high of $23.42. The firm has a 50 day simple moving average of $18.62 and a 200-day simple moving average of $19.66.

Ares Capital (NASDAQ:ARCC - Get Free Report) last issued 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. The business had revenue of $793.00 million during the quarter, compared to the consensus estimate of $795.20 million. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The company's revenue was up 4.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.55 EPS. On average, equities analysts predict that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Friday, March 13th were given a $0.48 dividend. The ex-dividend date was Friday, March 13th. This represents a $1.92 annualized dividend and a yield of 10.1%. Ares Capital's dividend payout ratio is 103.23%.

Ares Capital Company 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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