LGT Capital Partners LTD. lifted its position in shares of Ares Capital Co. (NASDAQ:ARCC) by 12.5% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,710,000 shares of the investment management company’s stock after buying an additional 190,000 shares during the quarter. Ares Capital comprises about 2.2% of LGT Capital Partners LTD.’s holdings, making the stock its 17th largest position. LGT Capital Partners LTD.’s holdings in Ares Capital were worth $26,642,000 at the end of the most recent reporting period.
Other institutional investors and hedge funds have also recently bought and sold shares of the company. Envestnet Asset Management Inc. grew its holdings in Ares Capital by 17.4% in the second quarter. Envestnet Asset Management Inc. now owns 28,143 shares of the investment management company’s stock worth $462,000 after purchasing an additional 4,175 shares during the period. BlueMountain Capital Management LLC acquired a new stake in Ares Capital in the second quarter worth $661,000. Millennium Management LLC grew its holdings in Ares Capital by 65.3% in the second quarter. Millennium Management LLC now owns 3,408,182 shares of the investment management company’s stock worth $56,065,000 after purchasing an additional 1,346,837 shares during the period. Putnam Investments LLC grew its holdings in Ares Capital by 347.0% in the second quarter. Putnam Investments LLC now owns 174,683 shares of the investment management company’s stock worth $2,873,000 after purchasing an additional 135,602 shares during the period. Finally, Bard Associates Inc. grew its holdings in Ares Capital by 18.7% in the second quarter. Bard Associates Inc. now owns 19,080 shares of the investment management company’s stock worth $314,000 after purchasing an additional 3,000 shares during the period. Institutional investors own 39.26% of the company’s stock.
Shares of ARCC traded up $0.10 during trading hours on Monday, reaching $16.39. 370,462 shares of the stock traded hands, compared to its average volume of 2,162,825. The company has a debt-to-equity ratio of 0.62, a current ratio of 2.41 and a quick ratio of 2.41. Ares Capital Co. has a 52 week low of $14.50 and a 52 week high of $17.63. The firm has a market capitalization of $6.91 billion, a P/E ratio of 11.79, a PEG ratio of 3.20 and a beta of 0.61.
Ares Capital (NASDAQ:ARCC) last released its quarterly earnings results on Wednesday, October 31st. The investment management company reported $0.45 earnings per share for the quarter, beating analysts’ consensus estimates of $0.40 by $0.05. Ares Capital had a net margin of 72.13% and a return on equity of 9.34%. The company had revenue of $342.00 million for the quarter, compared to analyst estimates of $320.15 million. During the same period last year, the firm earned $0.36 earnings per share. The firm’s revenue was up 16.3% on a year-over-year basis. On average, equities research analysts expect that Ares Capital Co. will post 1.63 earnings per share for the current year.
The company also recently declared a quarterly dividend, which was paid on Friday, December 28th. Investors of record on Friday, December 14th were given a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a dividend yield of 9.52%. The ex-dividend date of this dividend was Thursday, December 13th. Ares Capital’s payout ratio is currently 112.23%.
In related news, CFO Penelope F. Roll sold 6,000 shares of the firm’s stock in a transaction dated Tuesday, November 20th. The shares were sold at an average price of $16.76, for a total transaction of $100,560.00. Following the transaction, the chief financial officer now directly owns 11,147 shares of the company’s stock, valued at $186,823.72. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO R. Kipp Deveer purchased 50,000 shares of the company’s stock in a transaction that occurred on Friday, December 14th. The shares were purchased at an average cost of $16.02 per share, for a total transaction of $801,000.00. Following the completion of the transaction, the chief executive officer now directly owns 225,000 shares of the company’s stock, valued at $3,604,500. The disclosure for this purchase can be found here. Insiders have purchased 50,600 shares of company stock worth $810,756 over the last three months. 0.49% of the stock is owned by insiders.
A number of research analysts have recently issued reports on the stock. BidaskClub upgraded shares of Ares Capital from a “hold” rating to a “buy” rating in a report on Tuesday, November 13th. Oppenheimer set a $18.00 price objective on shares of Ares Capital and gave the company a “buy” rating in a report on Thursday, November 1st. National Securities reiterated a “buy” rating and set a $19.00 price objective on shares of Ares Capital in a report on Thursday, November 1st. Finally, Zacks Investment Research upgraded shares of Ares Capital from a “hold” rating to a “buy” rating and set a $18.00 price objective for the company in a report on Wednesday, October 24th. One research analyst has rated the stock with a hold rating and seven have given a buy rating to the company. Ares Capital has an average rating of “Buy” and an average price target of $18.25.
Ares Capital Profile
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.
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