Cottage Street Advisors LLC boosted its stake in shares of Ares Capital Co. (NASDAQ:ARCC) by 9.8% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 230,499 shares of the investment management company’s stock after buying an additional 20,499 shares during the period. Ares Capital makes up about 2.2% of Cottage Street Advisors LLC’s investment portfolio, making the stock its 16th largest holding. Cottage Street Advisors LLC owned 0.05% of Ares Capital worth $3,623,000 as of its most recent filing with the Securities & Exchange Commission.
A number of other hedge funds also recently bought and sold shares of ARCC. Oppenheimer Asset Management Inc. boosted its stake in Ares Capital by 70.3% during the 2nd quarter. Oppenheimer Asset Management Inc. now owns 21,746 shares of the investment management company’s stock valued at $356,000 after purchasing an additional 8,974 shares during the last quarter. Alpha Windward LLC boosted its stake in Ares Capital by 4,144.7% during the 3rd quarter. Alpha Windward LLC now owns 29,925 shares of the investment management company’s stock valued at $490,000 after purchasing an additional 29,220 shares during the last quarter. Summit X LLC boosted its stake in Ares Capital by 61.8% during the 3rd quarter. Summit X LLC now owns 19,270 shares of the investment management company’s stock valued at $315,000 after purchasing an additional 7,360 shares during the last quarter. Elliott Management Corp purchased a new stake in Ares Capital during the 2nd quarter valued at $18,343,000. Finally, Intl Fcstone Inc. purchased a new stake in Ares Capital during the 2nd quarter valued at $1,084,000. 43.63% of the stock is owned by institutional investors.
Several analysts have commented on the company. Wedbush assumed coverage on Ares Capital in a research note on Monday, November 27th. They set an “outperform” rating and a $18.00 target price on the stock. Zacks Investment Research downgraded Ares Capital from a “hold” rating to a “sell” rating in a research note on Monday, November 6th. National Securities reiterated a “buy” rating and set a $19.00 target price on shares of Ares Capital in a research note on Friday, November 3rd. Citigroup assumed coverage on Ares Capital in a research note on Wednesday, September 20th. They set an “outperform” rating and a $18.00 target price on the stock. Finally, CIBC assumed coverage on Ares Capital in a research note on Thursday, September 21st. They set an “outperform” rating and a $18.00 target price on the stock. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and eight have given a buy rating to the stock. Ares Capital has an average rating of “Buy” and a consensus price target of $18.00.
Ares Capital (NASDAQ:ARCC) last released its quarterly earnings results on Thursday, November 2nd. The investment management company reported $0.36 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.35 by $0.01. The firm had revenue of $294.00 million for the quarter, compared to the consensus estimate of $295.02 million. Ares Capital had a return on equity of 8.60% and a net margin of 45.78%. During the same period last year, the business posted $0.43 EPS. sell-side analysts expect that Ares Capital Co. will post 1.38 earnings per share for the current year.
The business also recently announced a quarterly dividend, which was paid on Friday, December 29th. Investors of record on Friday, December 15th were given a dividend of $0.38 per share. The ex-dividend date of this dividend was Thursday, December 14th. This represents a $1.52 annualized dividend and a yield of 9.48%. Ares Capital’s dividend payout ratio (DPR) is presently 120.63%.
In related news, Director Michael J. Arougheti bought 8,365 shares of the stock in a transaction that occurred on Friday, November 3rd. The shares were bought at an average cost of $15.85 per share, for a total transaction of $132,585.25. Following the completion of the transaction, the director now owns 937,054 shares of the company’s stock, valued at $14,852,305.90. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders have purchased 8,965 shares of company stock worth $142,315 over the last quarter. 0.45% of the stock is owned by company insiders.
Ares Capital Profile
Ares Capital Corporation is a specialty finance company. The Company operates as a closed-end, non-diversified management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. It invests primarily in the United States middle-market companies.
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