Tectonic Advisors LLC Grows Position in Ares Capital Corporation $ARCC

Tectonic Advisors LLC lifted its holdings in shares of Ares Capital Corporation (NASDAQ:ARCC) by 10.8% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 662,533 shares of the investment management company’s stock after purchasing an additional 64,491 shares during the quarter. Tectonic Advisors LLC’s holdings in Ares Capital were worth $13,403,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also modified their holdings of the company. City Holding Co. grew its holdings in shares of Ares Capital by 444.4% during the 3rd quarter. City Holding Co. now owns 1,225 shares of the investment management company’s stock worth $25,000 after purchasing an additional 1,000 shares during the period. SWAN Capital LLC purchased a new position in shares of Ares Capital during the 3rd quarter worth $27,000. NBT Bank N A NY purchased a new position in shares of Ares Capital during the 3rd quarter worth $31,000. Quarry LP purchased a new position in shares of Ares Capital during the 3rd quarter worth $33,000. Finally, WFA of San Diego LLC purchased a new position in shares of Ares Capital during the 2nd quarter worth $36,000. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Ares Capital

In other Ares Capital news, CEO Michael Kort Schnabel acquired 12,500 shares of the company’s stock in a transaction dated Thursday, February 5th. The shares were acquired at an average price of $19.13 per share, for a total transaction of $239,125.00. Following the acquisition, the chief executive officer owned 40,500 shares in the company, valued at $774,765. The trade was a 44.64% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Scott C. Lem acquired 5,186 shares of the company’s stock in a transaction dated Friday, February 6th. The stock was acquired at an average price of $19.29 per share, for a total transaction of $100,037.94. Following the acquisition, the chief financial officer owned 39,463 shares in the company, valued at approximately $761,241.27. The trade was a 15.13% increase in their position. The SEC filing for this purchase provides additional information. Corporate insiders own 0.49% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on ARCC shares. Wells Fargo & Company decreased their target price on Ares Capital from $21.00 to $20.00 and set an “overweight” rating on the stock in a research note on Thursday, February 5th. JPMorgan Chase & Co. decreased their target price 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. Weiss Ratings reissued a “hold (c+)” rating on shares of Ares Capital in a research note on Monday, December 29th. UBS Group decreased their target price on Ares Capital from $21.00 to $19.00 and set a “neutral” rating on the stock in a research note on Friday, March 13th. Finally, Wall Street Zen lowered Ares Capital from a “hold” rating to a “sell” rating in a research note on Saturday, February 7th. Seven analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $21.38.

Ares Capital Price Performance

ARCC stock opened at $18.09 on Monday. Ares Capital Corporation has a 1 year low of $17.40 and a 1 year high of $23.42. The firm has a market capitalization of $12.99 billion, a P/E ratio of 9.73 and a beta of 0.58. The company has a debt-to-equity ratio of 1.12, a current ratio of 1.70 and a quick ratio of 1.70. The business’s 50-day moving average is $18.67 and its two-hundred day moving average is $19.71.

Ares Capital (NASDAQ:ARCC) last released its quarterly earnings data on Wednesday, February 4th. The investment management company reported $0.50 EPS for the quarter, meeting analysts’ consensus estimates of $0.50. Ares Capital had a return on equity of 9.89% and a net margin of 42.56%.The business had revenue of $793.00 million for the quarter, compared to the consensus estimate of $795.20 million. During the same quarter in the prior year, the business posted $0.55 EPS. The business’s revenue for the quarter was up 4.5% on a year-over-year basis. Analysts anticipate that Ares Capital Corporation will post 2.19 earnings per share for the current fiscal year.

Ares Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th were issued a $0.48 dividend. The ex-dividend date was Friday, March 13th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 10.6%. Ares Capital’s dividend payout ratio is presently 103.23%.

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.