Canal Capital Management LLC Grows Stake in Ares Capital Co. (NASDAQ:ARCC)

Canal Capital Management LLC increased its holdings in Ares Capital Co. (NASDAQ:ARCC) by 16.3% during the third quarter, according to its most recent disclosure with the SEC. The institutional investor owned 39,974 shares of the investment management company’s stock after buying an additional 5,607 shares during the period. Canal Capital Management LLC’s holdings in Ares Capital were worth $837,000 as of its most recent SEC filing.

Several other large investors also recently added to or reduced their stakes in ARCC. SteelPeak Wealth LLC increased its position in shares of Ares Capital by 151.4% during the 2nd quarter. SteelPeak Wealth LLC now owns 45,698 shares of the investment management company’s stock valued at $952,000 after purchasing an additional 27,523 shares during the last quarter. Brendel Financial Advisors LLC bought a new position in Ares Capital during the third quarter valued at approximately $2,101,000. SG Americas Securities LLC grew its position in Ares Capital by 206.7% during the first quarter. SG Americas Securities LLC now owns 55,516 shares of the investment management company’s stock valued at $1,156,000 after acquiring an additional 37,412 shares during the last quarter. Sigma Investment Counselors Inc. raised its stake in shares of Ares Capital by 13.4% during the second quarter. Sigma Investment Counselors Inc. now owns 651,938 shares of the investment management company’s stock worth $13,586,000 after acquiring an additional 76,960 shares in the last quarter. Finally, Mirador Capital Partners LP lifted its holdings in shares of Ares Capital by 4.5% in the 1st quarter. Mirador Capital Partners LP now owns 225,752 shares of the investment management company’s stock worth $4,700,000 after acquiring an additional 9,750 shares during the last quarter. Institutional investors own 27.38% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have issued reports on ARCC. UBS Group upgraded shares of Ares Capital to a “hold” rating in a research report on Friday, August 23rd. Compass Point upgraded Ares Capital to a “strong-buy” rating in a report on Tuesday, July 30th. JMP Securities lifted their price target on Ares Capital from $21.00 to $22.00 and gave the stock a “market outperform” rating in a research note on Tuesday, July 30th. Finally, Royal Bank of Canada reissued an “outperform” rating and set a $22.00 price objective on shares of Ares Capital in a research note on Monday, August 5th. Three analysts have rated the stock with a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, Ares Capital has an average rating of “Moderate Buy” and a consensus target price of $21.71.

Ares Capital Trading Up 0.3 %

Shares of ARCC stock opened at $21.74 on Friday. The company has a debt-to-equity ratio of 1.05, a current ratio of 1.40 and a quick ratio of 1.40. The company has a market cap of $13.36 billion, a price-to-earnings ratio of 7.42 and a beta of 1.01. Ares Capital Co. has a 1 year low of $18.59 and a 1 year high of $21.84. The firm has a fifty day moving average price of $20.94 and a 200-day moving average price of $20.90.

Ares Capital (NASDAQ:ARCC) last released its earnings results on Tuesday, July 30th. The investment management company reported $0.61 EPS for the quarter, topping analysts’ consensus estimates of $0.58 by $0.03. Ares Capital had a net margin of 59.76% and a return on equity of 12.24%. The company had revenue of $755.00 million for the quarter, compared to analysts’ expectations of $714.27 million. During the same quarter last year, the business earned $0.58 EPS. As a group, equities analysts predict that Ares Capital Co. will post 2.39 earnings per share for the current year.

Ares Capital Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, September 30th. Shareholders of record on Friday, September 13th were paid a $0.48 dividend. This represents a $1.92 annualized dividend and a yield of 8.83%. The ex-dividend date was Friday, September 13th. Ares Capital’s payout ratio is currently 65.75%.

About Ares Capital

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.