Eos Management L.P. Makes New Investment in Ares Capital Corporation $ARCC

Eos Management L.P. bought a new position in Ares Capital Corporation (NASDAQ:ARCC) in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor bought 70,000 shares of the investment management company’s stock, valued at approximately $1,416,000.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. HB Wealth Management LLC lifted its position in Ares Capital by 25.8% in the 4th quarter. HB Wealth Management LLC now owns 211,494 shares of the investment management company’s stock worth $4,279,000 after buying an additional 43,418 shares in the last quarter. Kingswood Wealth Advisors LLC lifted its position in Ares Capital by 21.7% in the 4th quarter. Kingswood Wealth Advisors LLC now owns 26,341 shares of the investment management company’s stock worth $533,000 after buying an additional 4,688 shares in the last quarter. Key Client Fiduciary Advisors LLC lifted its position in Ares Capital by 6.1% in the 4th quarter. Key Client Fiduciary Advisors LLC now owns 61,458 shares of the investment management company’s stock worth $1,243,000 after buying an additional 3,552 shares in the last quarter. Foresight Capital Management Advisors Inc. lifted its position in Ares Capital by 6.8% in the 4th quarter. Foresight Capital Management Advisors Inc. now owns 310,420 shares of the investment management company’s stock worth $6,280,000 after buying an additional 19,866 shares in the last quarter. Finally, Eagle Global Advisors LLC lifted its position in Ares Capital by 1.6% in the 4th quarter. Eagle Global Advisors LLC now owns 99,760 shares of the investment management company’s stock worth $2,018,000 after buying an additional 1,525 shares in the last quarter. Hedge funds and other institutional investors own 27.38% of the company’s stock.

Insider Buying and Selling at Ares Capital

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

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. UBS Group cut their target price on shares of Ares Capital from $21.00 to $19.00 and set a “neutral” rating for the company in a research report on Friday, March 13th. Keefe, Bruyette & Woods cut 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 report on Thursday, April 16th. B. Riley Financial restated a “buy” rating on shares of Ares Capital in a report on Monday, February 9th. Royal Bank Of Canada cut their price target on shares of Ares Capital from $23.00 to $22.00 and set an “outperform” rating on the stock in a report on Monday, February 9th. Finally, JPMorgan Chase & Co. cut their price target on shares of 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 given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $21.13.

Ares Capital Stock Performance

NASDAQ:ARCC opened at $19.10 on Thursday. Ares Capital Corporation has a 1 year low of $17.40 and a 1 year high of $23.42. The firm’s fifty day simple moving average is $18.57 and its 200 day simple moving average is $19.63. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.12. The firm has a market capitalization of $13.71 billion, a PE ratio of 10.27 and a beta of 0.58.

Ares Capital (NASDAQ:ARCC) last posted its 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 for the quarter, compared to analyst estimates of $795.20 million. During the same period last year, the business posted $0.55 EPS. Ares Capital’s revenue was up 4.5% compared to the same quarter last year. On average, sell-side analysts anticipate that Ares Capital Corporation will post 1.93 EPS for the current year.

Ares Capital Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Friday, March 13th were paid a $0.48 dividend. The ex-dividend date was Friday, March 13th. This represents a $1.92 dividend on an annualized basis and a yield of 10.1%. Ares Capital’s dividend payout ratio (DPR) is presently 103.23%.

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.