Compass Capital Corp MA ADV Makes New Investment in Ares Capital Co. (NASDAQ:ARCC)

Compass Capital Corp MA ADV bought a new stake in Ares Capital Co. (NASDAQ:ARCC) during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 17,196 shares of the investment management company’s stock, valued at approximately $404,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. Cyndeo Wealth Partners LLC lifted its stake in Ares Capital by 2.3% in the fourth quarter. Cyndeo Wealth Partners LLC now owns 19,148 shares of the investment management company’s stock valued at $419,000 after purchasing an additional 430 shares during the last quarter. Sheaff Brock Investment Advisors LLC grew its stake in shares of Ares Capital by 0.9% during the 4th quarter. Sheaff Brock Investment Advisors LLC now owns 56,182 shares of the investment management company’s stock worth $1,230,000 after acquiring an additional 512 shares during the period. Western Financial Corp CA increased its holdings in Ares Capital by 2.2% in the 4th quarter. Western Financial Corp CA now owns 26,387 shares of the investment management company’s stock worth $578,000 after acquiring an additional 564 shares during the last quarter. Koshinski Asset Management Inc. raised its stake in Ares Capital by 1.6% in the 4th quarter. Koshinski Asset Management Inc. now owns 37,086 shares of the investment management company’s stock valued at $812,000 after acquiring an additional 567 shares during the period. Finally, Tyche Wealth Partners LLC lifted its holdings in Ares Capital by 3.6% during the fourth quarter. Tyche Wealth Partners LLC now owns 16,455 shares of the investment management company’s stock valued at $360,000 after purchasing an additional 578 shares during the last quarter. 27.38% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several research firms have recently weighed in on ARCC. Royal Bank of Canada lifted their target price on shares of Ares Capital from $23.00 to $24.00 and gave the stock an “outperform” rating in a research note on Friday, February 7th. Raymond James lowered shares of Ares Capital from an “outperform” rating to a “market perform” rating in a research note on Thursday, February 6th. Wells Fargo & Company dropped their target price on Ares Capital from $24.00 to $23.00 and set an “overweight” rating on the stock in a research report on Thursday, February 6th. B. Riley lifted their price target on Ares Capital from $21.00 to $22.00 and gave the company a “neutral” rating in a research report on Thursday, October 31st. Finally, Keefe, Bruyette & Woods increased their price objective on Ares Capital from $22.00 to $23.00 and gave the stock an “outperform” rating in a report on Friday, February 7th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Ares Capital presently has a consensus rating of “Moderate Buy” and a consensus target price of $22.94.

Ares Capital Price Performance

Ares Capital stock opened at $23.30 on Friday. The stock has a market cap of $15.64 billion, a price-to-earnings ratio of 9.51 and a beta of 1.01. The company has a quick ratio of 1.21, a current ratio of 1.21 and a debt-to-equity ratio of 1.03. The business has a 50-day simple moving average of $22.61 and a 200 day simple moving average of $21.70. Ares Capital Co. has a 52 week low of $19.32 and a 52 week high of $23.84.

Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings data on Wednesday, February 5th. The investment management company reported $0.55 EPS for the quarter, missing the consensus estimate of $0.58 by ($0.03). Ares Capital had a return on equity of 11.54% and a net margin of 50.90%. On average, research analysts forecast that Ares Capital Co. will post 2.19 earnings per share for the current fiscal year.

Ares Capital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, March 31st. Stockholders of record on Friday, March 14th will be issued a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 8.24%. The ex-dividend date of this dividend is Friday, March 14th. Ares Capital’s payout ratio is 78.37%.

Ares Capital 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.