Allen Investment Management LLC Trims Stock Position in Ares Capital Corporation $ARCC

Allen Investment Management LLC lowered its stake in shares of Ares Capital Corporation (NASDAQ:ARCC) by 1.6% in the fourth quarter, HoldingsChannel.com reports. The institutional investor owned 3,086,449 shares of the investment management company’s stock after selling 48,652 shares during the period. Allen Investment Management LLC’s holdings in Ares Capital were worth $62,439,000 as of its most recent filing with the SEC.

Other hedge funds have also recently modified their holdings of the company. Partners Group Holding AG grew its holdings in Ares Capital by 4.8% in the third quarter. Partners Group Holding AG now owns 1,767,154 shares of the investment management company’s stock valued at $36,068,000 after purchasing an additional 80,885 shares during the period. Investment Partners Asset Management Inc. purchased a new position in Ares Capital during the fourth quarter valued at $1,314,000. Prevail Innovative Wealth Advisors LLC purchased a new position in Ares Capital during the third quarter valued at $1,430,000. Sound Income Strategies LLC grew its position in shares of Ares Capital by 5.6% in the fourth quarter. Sound Income Strategies LLC now owns 2,616,789 shares of the investment management company’s stock valued at $54,691,000 after purchasing an additional 138,857 shares during the period. Finally, Tectonic Advisors LLC lifted its stake in Ares Capital by 10.8% in the 4th quarter. Tectonic Advisors LLC now owns 662,533 shares of the investment management company’s stock valued at $13,403,000 after buying an additional 64,491 shares in the last quarter. Hedge funds and other institutional investors own 27.38% of the company’s stock.

Wall Street Analyst Weigh In

ARCC has been the topic of several research analyst reports. Oppenheimer lowered their price objective on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Wednesday, April 29th. Truist Financial decreased their price objective on Ares Capital from $23.00 to $22.00 and set a “buy” rating on the stock in a report on Wednesday, April 29th. Wall Street Zen cut shares of Ares Capital from a “hold” rating to a “sell” rating in a research note on Saturday, February 7th. Keefe, Bruyette & Woods dropped their target price on shares of Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a report on Thursday, April 16th. Finally, Wells Fargo & Company reduced their target price 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. Nine research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $20.75.

Ares Capital Trading Up 0.4%

NASDAQ ARCC opened at $19.07 on Tuesday. Ares Capital Corporation has a 12 month low of $17.40 and a 12 month high of $23.42. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.40 and a quick ratio of 1.40. The firm’s 50-day moving average is $18.57 and its two-hundred day moving average is $19.42. The stock has a market capitalization of $13.69 billion, a P/E ratio of 11.70 and a beta of 0.56.

Ares Capital (NASDAQ:ARCC) last announced its earnings results on Tuesday, April 28th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.01). Ares Capital had a net margin of 37.30% and a return on equity of 9.85%. The firm had revenue of $763.00 million during the quarter, compared to analysts’ expectations of $778.00 million. During the same period in the previous year, the firm earned $0.50 EPS. The firm’s revenue for the quarter was up 4.2% compared to the same quarter last year. On average, sell-side analysts anticipate that Ares Capital Corporation will post 1.91 earnings per share for the current year.

Ares Capital Dividend Announcement

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

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.