SVB Wealth LLC Buys New Shares in Ares Capital Co. (NASDAQ:ARCC)

SVB Wealth LLC purchased a new position in shares of Ares Capital Co. (NASDAQ:ARCC) in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 10,489 shares of the investment management company’s stock, valued at approximately $230,000.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Crestwood Advisors Group LLC boosted its stake in Ares Capital by 11.2% in the third quarter. Crestwood Advisors Group LLC now owns 93,882 shares of the investment management company’s stock worth $1,966,000 after buying an additional 9,428 shares in the last quarter. Crescent Grove Advisors LLC boosted its stake in shares of Ares Capital by 1.8% in the 3rd quarter. Crescent Grove Advisors LLC now owns 114,784 shares of the investment management company’s stock valued at $2,404,000 after purchasing an additional 2,074 shares in the last quarter. Balentine LLC bought a new position in shares of Ares Capital during the 3rd quarter valued at $614,000. Concurrent Investment Advisors LLC grew its holdings in shares of Ares Capital by 9.7% during the 3rd quarter. Concurrent Investment Advisors LLC now owns 82,970 shares of the investment management company’s stock valued at $1,737,000 after purchasing an additional 7,330 shares during the last quarter. Finally, Baugh & Associates LLC raised its position in Ares Capital by 1.2% in the 3rd quarter. Baugh & Associates LLC now owns 236,338 shares of the investment management company’s stock worth $4,767,000 after purchasing an additional 2,799 shares during the period. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

Ares Capital Trading Down 0.7 %

Shares of ARCC opened at $22.63 on Thursday. Ares Capital Co. has a 1-year low of $19.32 and a 1-year high of $23.84. The firm has a market capitalization of $15.20 billion, a price-to-earnings ratio of 9.24 and a beta of 1.00. The firm’s 50-day moving average price is $22.86 and its 200-day moving average price is $21.84. The company has a current ratio of 1.21, a quick ratio of 1.21 and a debt-to-equity ratio of 1.03.

Ares Capital (NASDAQ:ARCC) last announced its earnings results on Wednesday, February 5th. The investment management company reported $0.55 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.58 by ($0.03). Ares Capital had a return on equity of 11.54% and a net margin of 50.90%. Sell-side analysts anticipate that Ares Capital Co. will post 2.19 EPS for the current year.

Ares Capital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 31st. Stockholders of record on Friday, March 14th will be issued a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 8.48%. The ex-dividend date of this dividend is Friday, March 14th. Ares Capital’s dividend payout ratio (DPR) is presently 78.37%.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on ARCC. JPMorgan Chase & Co. raised their price objective on Ares Capital from $23.00 to $24.50 and gave the company an “overweight” rating in a research note on Monday, February 3rd. Raymond James lowered Ares Capital from an “outperform” rating to a “market perform” rating in a research report on Thursday, February 6th. Keefe, Bruyette & Woods boosted their price objective on Ares Capital from $22.00 to $23.00 and gave the company an “outperform” rating in a research report on Friday, February 7th. Wells Fargo & Company cut their target price on shares of Ares Capital from $24.00 to $23.00 and set an “overweight” rating on the stock in a report on Thursday, February 6th. Finally, Royal Bank of Canada upped their price target on shares of Ares Capital from $23.00 to $24.00 and gave the company an “outperform” rating in a report on Friday, February 7th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat, Ares Capital presently has an average rating of “Moderate Buy” and a consensus price target of $22.94.

About Ares Capital

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.