Prairiewood Capital LLC Acquires 38,396 Shares of Ares Capital Corporation $ARCC

Prairiewood Capital LLC increased its stake in shares of Ares Capital Corporation (NASDAQ:ARCC) by 12.7% during the 1st quarter, Holdings Channel reports. The institutional investor owned 341,678 shares of the investment management company’s stock after buying an additional 38,396 shares during the period. Ares Capital makes up 1.8% of Prairiewood Capital LLC’s holdings, making the stock its 17th biggest holding. Prairiewood Capital LLC’s holdings in Ares Capital were worth $6,157,000 at the end of the most recent quarter.

Other hedge funds have also recently added to or reduced their stakes in the company. Palladiem LLC acquired a new stake in Ares Capital in the 4th quarter valued at about $26,000. SWAN Capital LLC acquired a new position in shares of Ares Capital during the third quarter worth approximately $27,000. Sankala Group LLC bought a new stake in shares of Ares Capital during the fourth quarter valued at approximately $28,000. Core Wealth Advisors LLC bought a new stake in shares of Ares Capital during the fourth quarter valued at approximately $33,000. Finally, Quarry LP bought a new stake in shares of Ares Capital during the third quarter valued at approximately $33,000. Institutional investors own 27.38% of the company’s stock.

Ares Capital Price Performance

Shares of NASDAQ ARCC opened at $18.03 on Friday. Ares Capital Corporation has a 1 year low of $17.40 and a 1 year high of $23.42. The firm’s 50-day moving average is $18.77 and its 200-day moving average is $19.29. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 1.13. The firm has a market capitalization of $12.95 billion, a PE ratio of 11.06 and a beta of 0.56.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings results on Tuesday, April 28th. The investment management company reported $0.47 earnings per share for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.01). Ares Capital had a return on equity of 9.85% and a net margin of 37.30%.The business had revenue of $763.00 million for the quarter, compared to the consensus estimate of $778.00 million. During the same period last year, the firm earned $0.50 earnings per share. The company’s quarterly revenue was up 4.2% on a year-over-year basis. Equities analysts expect that Ares Capital Corporation will post 1.91 EPS for the current year.

Ares Capital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be issued a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a yield of 10.6%. The ex-dividend date of this dividend is Monday, June 15th. Ares Capital’s payout ratio is currently 117.79%.

Analyst Ratings Changes

ARCC has been the subject of several research analyst reports. UBS Group dropped their price objective on shares of Ares Capital from $21.00 to $19.00 and set a “neutral” rating for the company in a research report on Friday, March 13th. Keefe, Bruyette & Woods decreased their price objective on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a research report on Thursday, April 16th. JPMorgan Chase & Co. decreased their price objective on Ares Capital from $22.00 to $19.00 and set an “overweight” rating on the stock in a research report on Friday, March 13th. Royal Bank Of Canada lowered their target price on Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a research note on Wednesday, April 29th. Finally, Truist Financial dropped their target price on Ares Capital from $23.00 to $22.00 and set a “buy” rating for the company in a research report on Wednesday, April 29th. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Ares Capital has a consensus rating of “Moderate Buy” and a consensus target price of $20.65.

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.