Comerica Bank Has $1.13 Million Stock Holdings in Ares Capital Co. (NASDAQ:ARCC)
Comerica Bank lessened its holdings in Ares Capital Co. (NASDAQ:ARCC) by 12.5% during the third quarter, HoldingsChannel reports. The firm owned 61,069 shares of the investment management company’s stock after selling 8,757 shares during the quarter. Comerica Bank’s holdings in Ares Capital were worth $1,126,000 at the end of the most recent reporting period.
Other hedge funds have also modified their holdings of the company. Green Square Asset Management LLC acquired a new stake in shares of Ares Capital during the 2nd quarter valued at $8,200,000. California Public Employees Retirement System lifted its holdings in Ares Capital by 43.5% during the 3rd quarter. California Public Employees Retirement System now owns 1,042,713 shares of the investment management company’s stock worth $19,431,000 after buying an additional 316,100 shares during the period. Vaughan Nelson Investment Management L.P. lifted its holdings in Ares Capital by 13.1% during the 2nd quarter. Vaughan Nelson Investment Management L.P. now owns 2,690,619 shares of the investment management company’s stock worth $48,270,000 after buying an additional 311,400 shares during the period. Sound Income Strategies LLC raised its position in shares of Ares Capital by 31.0% in the 2nd quarter. Sound Income Strategies LLC now owns 1,293,009 shares of the investment management company’s stock worth $23,197,000 after acquiring an additional 306,185 shares in the last quarter. Finally, LSV Asset Management raised its position in shares of Ares Capital by 26.5% in the 2nd quarter. LSV Asset Management now owns 1,355,665 shares of the investment management company’s stock worth $24,320,000 after acquiring an additional 283,900 shares in the last quarter. 36.30% of the stock is currently owned by hedge funds and other institutional investors.
Several research analysts have recently weighed in on ARCC shares. Compass Point lowered Ares Capital from a “buy” rating to a “neutral” rating in a research report on Friday, August 23rd. BidaskClub lowered Ares Capital from a “hold” rating to a “sell” rating in a research report on Wednesday, October 30th. BMO Capital Markets raised Ares Capital from a “market perform” rating to an “outperform” rating and lifted their price objective for the stock from $19.00 to $20.00 in a research report on Monday, August 19th. Royal Bank of Canada started coverage on Ares Capital in a research report on Tuesday, November 12th. They issued an “outperform” rating and a $20.00 price objective for the company. Finally, Raymond James lowered Ares Capital from an “outperform” rating to a “market perform” rating in a research report on Tuesday, October 22nd. They noted that the move was a valuation call. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and six have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $19.86.
Ares Capital (NASDAQ:ARCC) last issued its earnings results on Wednesday, October 30th. The investment management company reported $0.48 EPS for the quarter, beating analysts’ consensus estimates of $0.46 by $0.02. Ares Capital had a return on equity of 10.97% and a net margin of 49.90%. The business had revenue of $387.00 million during the quarter, compared to analyst estimates of $370.17 million. During the same period in the previous year, the company posted $0.45 EPS. The firm’s revenue was up 13.2% compared to the same quarter last year. On average, sell-side analysts expect that Ares Capital Co. will post 1.89 EPS for the current year.
The company also recently announced a quarterly dividend, which will be paid on Monday, December 30th. Investors of record on Monday, December 16th will be given a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a yield of 9.00%. This is a positive change from Ares Capital’s previous quarterly dividend of $0.40. The ex-dividend date is Friday, December 13th. Ares Capital’s payout ratio is presently 95.24%.
In other news, Director Steve Bartlett bought 14,177 shares of the firm’s stock in a transaction that occurred on Thursday, October 31st. The stock was acquired at an average cost of $18.35 per share, with a total value of $260,147.95. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 0.53% of the company’s stock.
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.
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