Magnolia Capital Advisors LLC Reduces Stake in Ares Capital Corporation $ARCC

Magnolia Capital Advisors LLC reduced its position in Ares Capital Corporation (NASDAQ:ARCC) by 8.2% in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 115,595 shares of the investment management company’s stock after selling 10,369 shares during the period. Magnolia Capital Advisors LLC’s holdings in Ares Capital were worth $2,538,000 as of its most recent SEC filing.

Several other hedge funds have also recently bought and sold shares of the company. Kingstone Capital Partners Texas LLC purchased a new position in Ares Capital during the second quarter worth $877,203,000. HighTower Advisors LLC increased its position in Ares Capital by 87.2% during the first quarter. HighTower Advisors LLC now owns 2,621,109 shares of the investment management company’s stock worth $58,084,000 after buying an additional 1,220,570 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC purchased a new position in Ares Capital during the first quarter worth $14,766,000. CCLA Investment Management increased its position in Ares Capital by 26.5% during the first quarter. CCLA Investment Management now owns 2,799,023 shares of the investment management company’s stock worth $62,026,000 after buying an additional 587,068 shares in the last quarter. Finally, SCS Capital Management LLC purchased a new position in Ares Capital during the first quarter worth $11,778,000. 27.38% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Ares Capital

In related news, CEO Michael Kort Schnabel bought 13,000 shares of the firm’s stock in a transaction dated Friday, October 31st. The stock was bought at an average price of $20.39 per share, with a total value of $265,070.00. Following the completion of the transaction, the chief executive officer directly owned 28,000 shares of the company’s stock, valued at approximately $570,920. This represents a 86.67% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.48% of the stock is owned by insiders.

Ares Capital Price Performance

ARCC stock opened at $20.41 on Tuesday. The stock has a 50-day moving average price of $20.84 and a two-hundred day moving average price of $21.56. Ares Capital Corporation has a 12-month low of $18.26 and a 12-month high of $23.84. The company has a current ratio of 2.20, a quick ratio of 1.14 and a debt-to-equity ratio of 1.09. The company has a market cap of $14.61 billion, a PE ratio of 10.21 and a beta of 0.68.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings results on Tuesday, October 28th. 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 return on equity of 10.08% and a net margin of 45.16%.The firm had revenue of $658.00 million during the quarter, compared to the consensus estimate of $766.48 million. During the same quarter in the previous year, the business earned $0.58 earnings per share. The firm’s quarterly revenue was up .9% compared to the same quarter last year. As a group, research analysts predict that Ares Capital Corporation will post 2.19 EPS for the current year.

Ares Capital Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 30th. Stockholders of record on Monday, December 15th will be given a $0.48 dividend. The ex-dividend date of this dividend is Monday, December 15th. This represents a $1.92 annualized dividend and a dividend yield of 9.4%. Ares Capital’s dividend payout ratio is presently 96.00%.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Wall Street Zen raised Ares Capital from a “sell” rating to a “hold” rating in a research report on Sunday, October 19th. Wells Fargo & Company dropped their price target on Ares Capital from $23.00 to $21.00 and set an “overweight” rating for the company in a research report on Wednesday, October 29th. JPMorgan Chase & Co. lowered their price objective on Ares Capital from $23.00 to $22.00 and set an “overweight” rating for the company in a research report on Wednesday, October 1st. JMP Securities set a $23.00 price objective on Ares Capital and gave the company a “market outperform” rating in a research report on Thursday, July 31st. Finally, Keefe, Bruyette & Woods lowered their price objective on Ares Capital from $23.00 to $22.00 and set an “outperform” rating for the company in a research report on Wednesday, October 29th. Eight equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $22.25.

Ares Capital Company 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.