Denali Advisors LLC Lowers Position in Ares Capital Corporation $ARCC

Denali Advisors LLC trimmed its position in shares of Ares Capital Corporation (NASDAQ:ARCC) by 20.8% during the third quarter, Holdings Channel.com reports. The fund owned 446,106 shares of the investment management company’s stock after selling 117,345 shares during the quarter. Ares Capital comprises 1.0% of Denali Advisors LLC’s portfolio, making the stock its 14th biggest holding. Denali Advisors LLC’s holdings in Ares Capital were worth $9,105,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in ARCC. City Holding Co. increased its stake in Ares Capital by 444.4% in the 3rd quarter. City Holding Co. now owns 1,225 shares of the investment management company’s stock valued at $25,000 after buying an additional 1,000 shares during the last quarter. Fourth Dimension Wealth LLC purchased a new stake in shares of Ares Capital during the second quarter valued at approximately $29,000. NBT Bank N A NY bought a new stake in Ares Capital during the third quarter worth $31,000. CNB Bank purchased a new position in Ares Capital in the second quarter worth $36,000. Finally, WFA of San Diego LLC purchased a new position in Ares Capital in the second quarter worth $36,000. Institutional investors own 27.38% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the company. Wall Street Zen lowered Ares Capital from a “hold” rating to a “sell” rating in a research report on Saturday, February 7th. B. Riley Financial restated a “buy” rating on shares of Ares Capital in a report on Monday, February 9th. Citigroup reiterated a “market outperform” rating on shares of Ares Capital in a research note on Thursday, October 30th. Keefe, Bruyette & Woods decreased their price target on shares of Ares Capital from $23.00 to $22.00 and set an “outperform” rating for the company in a research note on Wednesday, October 29th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Ares Capital in a research note on Monday, December 29th. Seven equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, Ares Capital has an average rating of “Moderate Buy” and a consensus target price of $22.00.

Insider Activity

In related news, CEO Michael Kort Schnabel purchased 12,500 shares of the firm’s stock in a transaction dated Thursday, February 5th. The shares were purchased at an average cost of $19.13 per share, for a total transaction of $239,125.00. Following the completion of the transaction, the chief executive officer directly owned 40,500 shares in the company, valued at approximately $774,765. This represents a 44.64% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CFO Scott C. Lem purchased 5,186 shares of the stock in a transaction dated Friday, February 6th. The stock was purchased at an average cost of $19.29 per share, for a total transaction of $100,037.94. Following the completion of the acquisition, the chief financial officer owned 39,463 shares of the company’s stock, valued at approximately $761,241.27. This represents a 15.13% increase in their position. The disclosure for this purchase is available in the SEC filing. 0.48% of the stock is owned by company insiders.

Ares Capital Stock Performance

Shares of ARCC stock opened at $19.37 on Monday. The firm’s 50 day moving average is $20.27 and its 200 day moving average is $20.74. The stock has a market capitalization of $13.91 billion, a P/E ratio of 10.41 and a beta of 0.59. Ares Capital Corporation has a 12 month low of $18.26 and a 12 month high of $23.63. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.12.

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

Ares Capital Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 13th will be issued a dividend of $0.48 per share. The ex-dividend date of this dividend is Friday, March 13th. This represents a $1.92 dividend on an annualized basis and a yield of 9.9%. Ares Capital’s dividend payout ratio is 103.23%.

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.