Spinnaker Investment Group LLC Takes $557,000 Position in Ares Capital Corporation $ARCC

Spinnaker Investment Group LLC acquired a new stake in shares of Ares Capital Corporation (NASDAQ:ARCC) during the third quarter, HoldingsChannel reports. The firm acquired 27,270 shares of the investment management company’s stock, valued at approximately $557,000.

A number of other institutional investors and hedge funds have also recently bought and sold shares of ARCC. Kingstone Capital Partners Texas LLC bought a new stake in shares of Ares Capital during the 2nd quarter worth about $877,203,000. Invesco Ltd. increased its stake in shares of Ares Capital by 825.4% during the second quarter. Invesco Ltd. now owns 3,551,711 shares of the investment management company’s stock valued at $77,996,000 after acquiring an additional 3,167,906 shares during the period. JPMorgan Chase & Co. increased its stake in shares of Ares Capital by 18.6% during the second quarter. JPMorgan Chase & Co. now owns 6,404,876 shares of the investment management company’s stock valued at $140,651,000 after acquiring an additional 1,006,460 shares during the period. OMERS ADMINISTRATION Corp raised its holdings in Ares Capital by 56.9% during the second quarter. OMERS ADMINISTRATION Corp now owns 2,342,324 shares of the investment management company’s stock worth $51,437,000 after purchasing an additional 849,097 shares in the last quarter. Finally, Bank of America Corp DE lifted its position in Ares Capital by 8.9% in the second quarter. Bank of America Corp DE now owns 8,678,129 shares of the investment management company’s stock worth $190,572,000 after purchasing an additional 705,882 shares during the period. Institutional investors own 27.38% of the company’s stock.

Ares Capital Stock Down 1.0%

Shares of Ares Capital stock opened at $19.94 on Friday. The stock’s fifty day moving average is $20.25 and its 200-day moving average is $21.34. The firm has a market capitalization of $14.27 billion, a PE ratio of 9.97 and a beta of 0.59. The company has a quick ratio of 2.20, a current ratio of 2.20 and a debt-to-equity ratio of 1.09. Ares Capital Corporation has a 12-month low of $18.26 and a 12-month high of $23.84.

Ares Capital (NASDAQ:ARCC) last released its quarterly earnings results on Tuesday, October 28th. The investment management company reported $0.50 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.50. The business had revenue of $1.59 billion during the quarter, compared to analyst estimates of $766.48 million. Ares Capital had a return on equity of 10.08% and a net margin of 45.16%.Ares Capital’s revenue for the quarter was up .9% on a year-over-year basis. During the same quarter last year, the company posted $0.58 EPS. Equities analysts anticipate that Ares Capital Corporation will post 2.19 earnings per share for the current year.

Ares Capital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 30th. Stockholders of record on Monday, December 15th will be given a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 9.6%. The ex-dividend date of this dividend is Monday, December 15th. Ares Capital’s dividend payout ratio (DPR) is 96.00%.

Insider Activity

In other news, CEO Michael Kort Schnabel purchased 13,000 shares of Ares Capital stock in a transaction that occurred on Friday, October 31st. The stock was acquired at an average price of $20.39 per share, for a total transaction of $265,070.00. Following the transaction, the chief executive officer owned 28,000 shares in the company, valued at $570,920. The trade was a 86.67% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at this link. 0.48% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. Citigroup reiterated a “market outperform” rating on shares of Ares Capital in a research report on Thursday, October 30th. Wells Fargo & Company decreased their target price on Ares Capital from $23.00 to $21.00 and set an “overweight” rating for the company in a research note on Wednesday, October 29th. Capital One Financial set a $22.50 target price on Ares Capital in a report on Friday, October 10th. UBS Group dropped their price target on shares of Ares Capital from $22.50 to $21.00 and set a “neutral” rating on the stock in a research report on Tuesday, October 14th. Finally, JPMorgan Chase & Co. cut their price target on shares of Ares Capital from $23.00 to $22.00 and set an “overweight” rating for the company in a report on Wednesday, October 1st. Seven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $22.25.

Ares Capital Company Profile

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.