Tectonic Advisors LLC Has $12.21 Million Position in Ares Capital Corporation $ARCC

Tectonic Advisors LLC lifted its holdings in Ares Capital Corporation (NASDAQ:ARCC) by 11.8% during the third quarter, HoldingsChannel reports. The firm owned 598,042 shares of the investment management company’s stock after purchasing an additional 62,887 shares during the period. Tectonic Advisors LLC’s holdings in Ares Capital were worth $12,206,000 as of its most recent filing with the SEC.

Other hedge funds have also recently added to or reduced their stakes in the company. Taylor Frigon Capital Management LLC increased its position in Ares Capital by 20.9% during the second quarter. Taylor Frigon Capital Management LLC now owns 126,366 shares of the investment management company’s stock worth $2,775,000 after acquiring an additional 21,847 shares during the period. Confluence Investment Management LLC grew its position in Ares Capital by 0.6% in the 2nd quarter. Confluence Investment Management LLC now owns 3,796,791 shares of the investment management company’s stock worth $83,378,000 after purchasing an additional 21,344 shares during the last quarter. Rollins Financial Advisors LLC grew its position in Ares Capital by 10.2% in the 1st quarter. Rollins Financial Advisors LLC now owns 138,139 shares of the investment management company’s stock worth $3,061,000 after purchasing an additional 12,838 shares during the last quarter. Sound Income Strategies LLC increased its holdings in shares of Ares Capital by 3.2% during the 2nd quarter. Sound Income Strategies LLC now owns 2,453,944 shares of the investment management company’s stock worth $53,889,000 after purchasing an additional 75,109 shares during the period. Finally, Vise Technologies Inc. acquired a new position in shares of Ares Capital during the second quarter valued at about $309,000. Institutional investors own 27.38% of the company’s stock.

Analyst Ratings Changes

A number of research firms recently weighed in on ARCC. Capital One Financial set a $22.50 target price on Ares Capital in a research report on Friday, October 10th. JPMorgan Chase & Co. decreased their price objective on Ares Capital from $23.00 to $22.00 and set an “overweight” rating on the stock in a report on Wednesday, October 1st. Wells Fargo & Company lowered their price objective on Ares Capital from $23.00 to $21.00 and set an “overweight” rating on the stock in a research report on Wednesday, October 29th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Ares Capital in a research report on Monday. Finally, UBS Group decreased their price target on shares of Ares Capital from $22.50 to $21.00 and set a “neutral” rating on the stock in a research note on Tuesday, October 14th. Seven research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $22.25.

Ares Capital Trading Down 0.3%

Shares of ARCC opened at $20.23 on Friday. The company has a current ratio of 2.20, a quick ratio of 2.20 and a debt-to-equity ratio of 1.09. The stock has a market cap of $14.48 billion, a PE ratio of 10.12 and a beta of 0.58. Ares Capital Corporation has a 1 year low of $18.26 and a 1 year high of $23.84. The stock has a 50 day simple moving average of $20.31 and a 200-day simple moving average of $21.22.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings results on Tuesday, October 28th. The investment management company reported $0.50 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.50. Ares Capital had a return on equity of 10.08% and a net margin of 45.16%.The firm had revenue of $1.59 billion for the quarter, compared to analysts’ expectations of $766.48 million. During the same period in the prior year, the business posted $0.58 earnings per share. The business’s revenue was up .9% compared to the same quarter last year. On average, sell-side analysts predict that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Investors of record on Monday, December 15th were given a dividend of $0.48 per share. The ex-dividend date was Monday, December 15th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.5%. Ares Capital’s dividend payout ratio (DPR) is 96.00%.

Insider Activity

In other news, CEO Michael Kort Schnabel purchased 13,000 shares of the business’s stock in a transaction that occurred on Friday, October 31st. The stock was purchased at an average cost of $20.39 per share, with a total value of $265,070.00. Following the acquisition, the chief executive officer directly owned 28,000 shares of the company’s stock, valued at approximately $570,920. This trade represents a 86.67% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 0.48% of the stock is owned by company insiders.

About Ares Capital

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.