Chapin Davis Inc. Increases Holdings in Ares Capital Co. (NASDAQ:ARCC)

Chapin Davis Inc. grew its holdings in Ares Capital Co. (NASDAQ:ARCC) by 2.2% during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 22,966 shares of the investment management company’s stock after acquiring an additional 501 shares during the period. Chapin Davis Inc.’s holdings in Ares Capital were worth $478,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors have also made changes to their positions in ARCC. Confluence Investment Management LLC purchased a new position in shares of Ares Capital in the first quarter valued at about $86,227,000. International Assets Investment Management LLC increased its holdings in shares of Ares Capital by 1,865.8% in the fourth quarter. International Assets Investment Management LLC now owns 4,214,991 shares of the investment management company’s stock worth $844,260,000 after purchasing an additional 4,000,570 shares during the last quarter. Van ECK Associates Corp increased its stake in Ares Capital by 11.3% during the fourth quarter. Van ECK Associates Corp now owns 8,282,079 shares of the investment management company’s stock worth $165,890,000 after acquiring an additional 840,823 shares during the last quarter. Tudor Investment Corp Et Al bought a new stake in Ares Capital during the third quarter worth approximately $11,952,000. Finally, Edge Capital Group LLC increased its stake in Ares Capital by 2,057.7% during the fourth quarter. Edge Capital Group LLC now owns 526,258 shares of the investment management company’s stock worth $10,541,000 after acquiring an additional 501,868 shares during the last quarter. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

Ares Capital Stock Down 0.6 %

Ares Capital stock opened at $20.71 on Tuesday. The business has a fifty day moving average of $21.03 and a two-hundred day moving average of $20.52. The company has a quick ratio of 1.63, a current ratio of 1.63 and a debt-to-equity ratio of 0.99. The firm has a market cap of $12.73 billion, a P/E ratio of 7.09 and a beta of 1.00. Ares Capital Co. has a twelve month low of $18.55 and a twelve month high of $21.84.

Ares Capital (NASDAQ:ARCC) last posted its earnings results on Wednesday, May 1st. The investment management company reported $0.59 earnings per share for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.01). The company had revenue of $701.00 million for the quarter, compared to analysts’ expectations of $703.85 million. Ares Capital had a return on equity of 12.37% and a net margin of 62.77%. The firm’s quarterly revenue was up 13.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.56 EPS. On average, analysts forecast that Ares Capital Co. will post 2.34 earnings per share for the current fiscal year.

Ares Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 28th. Stockholders of record on Friday, June 14th were issued a dividend of $0.48 per share. The ex-dividend date was Friday, June 14th. This represents a $1.92 annualized dividend and a dividend yield of 9.27%. Ares Capital’s dividend payout ratio is presently 65.75%.

Analysts Set New Price Targets

Several brokerages have weighed in on ARCC. Oppenheimer boosted their price objective on Ares Capital from $21.00 to $22.00 and gave the stock an “outperform” rating in a research note on Thursday, May 2nd. JPMorgan Chase & Co. upped their target price on Ares Capital from $21.50 to $22.00 and gave the company an “overweight” rating in a research note on Thursday, May 2nd. JMP Securities reaffirmed a “market outperform” rating and set a $21.00 target price on shares of Ares Capital in a research note on Tuesday, March 26th. Royal Bank of Canada reaffirmed an “outperform” rating and set a $22.00 target price on shares of Ares Capital in a research note on Thursday, May 23rd. Finally, Truist Financial upped their target price on Ares Capital from $22.00 to $23.00 and gave the company a “buy” rating in a research note on Thursday, May 2nd. Three investment analysts have rated the stock with a hold rating and five have given a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $21.50.

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.