Prairiewood Capital LLC Has $6.16 Million Position in Ares Capital Corporation $ARCC

Prairiewood Capital LLC raised its holdings in Ares Capital Corporation (NASDAQ:ARCC) by 12.7% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 341,678 shares of the investment management company’s stock after buying an additional 38,396 shares during the quarter. Ares Capital accounts for approximately 1.8% of Prairiewood Capital LLC’s holdings, making the stock its 17th biggest holding. Prairiewood Capital LLC’s holdings in Ares Capital were worth $6,157,000 at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in the business. Morgan Stanley boosted its position in shares of Ares Capital by 2.0% during the 4th quarter. Morgan Stanley now owns 17,558,581 shares of the investment management company’s stock valued at $355,210,000 after acquiring an additional 341,578 shares in the last quarter. UBS Group AG raised its position in Ares Capital by 41.8% in the fourth quarter. UBS Group AG now owns 11,201,905 shares of the investment management company’s stock worth $226,615,000 after purchasing an additional 3,301,890 shares in the last quarter. Bank of America Corp DE raised its position in Ares Capital by 8.9% in the second quarter. Bank of America Corp DE now owns 8,678,129 shares of the investment management company’s stock worth $190,572,000 after purchasing an additional 705,882 shares in the last quarter. Legal & General Group Plc raised its position in Ares Capital by 16.4% in the fourth quarter. Legal & General Group Plc now owns 5,408,067 shares of the investment management company’s stock worth $109,432,000 after purchasing an additional 761,838 shares in the last quarter. Finally, Wells Fargo & Company MN lifted its stake in Ares Capital by 1.5% during the fourth quarter. Wells Fargo & Company MN now owns 4,387,637 shares of the investment management company’s stock worth $88,762,000 after purchasing an additional 63,796 shares during the period. Institutional investors and hedge funds own 27.38% of the company’s stock.

Ares Capital Price Performance

NASDAQ:ARCC opened at $18.03 on Friday. The firm has a market cap of $12.95 billion, a PE ratio of 11.06 and a beta of 0.56. Ares Capital Corporation has a 12 month low of $17.40 and a 12 month high of $23.42. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.13. The company’s 50-day moving average price is $18.77 and its two-hundred day moving average price is $19.29.

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

Ares Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be issued a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a yield of 10.6%. The ex-dividend date of this dividend is Monday, June 15th. Ares Capital’s dividend payout ratio (DPR) is currently 117.79%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Citizens Jmp decreased their price objective on Ares Capital from $23.00 to $22.00 and set a “market outperform” rating on the stock in a report on Wednesday, April 22nd. Wells Fargo & Company reissued an “equal weight” rating and issued a $19.00 target price (down from $20.00) on shares of Ares Capital in a report on Friday, June 12th. JPMorgan Chase & Co. decreased their price target on Ares Capital from $22.00 to $19.00 and set an “overweight” rating on the stock in a research note on Friday, March 13th. Oppenheimer lowered their price target on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a research report on Wednesday, April 29th. Finally, UBS Group dropped their price objective on Ares Capital from $21.00 to $19.00 and set a “neutral” rating for the company in a research note on Friday, March 13th. Eight research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Ares Capital presently has a consensus rating of “Moderate Buy” and an average target price of $20.65.

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.