Sigma Investment Counselors Inc. Acquires 37,220 Shares of Ares Capital Corporation $ARCC

Sigma Investment Counselors Inc. raised its holdings in shares of Ares Capital Corporation (NASDAQ:ARCC) by 4.8% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 818,336 shares of the investment management company’s stock after acquiring an additional 37,220 shares during the quarter. Sigma Investment Counselors Inc.’s holdings in Ares Capital were worth $15,630,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Generali Asset Management SPA SGR grew its position in shares of Ares Capital by 5.3% in the third quarter. Generali Asset Management SPA SGR now owns 7,950,908 shares of the investment management company’s stock valued at $151,862,000 after purchasing an additional 402,913 shares in the last quarter. MADDEN SECURITIES Corp bought a new stake in shares of Ares Capital during the 3rd quarter valued at $46,000. Latitude Advisors LLC bought a new stake in shares of Ares Capital during the 3rd quarter valued at $84,000. Foresight Capital Management Advisors Inc. lifted its holdings in Ares Capital by 1.2% during the 3rd quarter. Foresight Capital Management Advisors Inc. now owns 349,909 shares of the investment management company’s stock worth $6,683,000 after purchasing an additional 4,131 shares in the last quarter. Finally, Roman Butler Fullerton & Co. lifted its holdings in Ares Capital by 2.2% during the 3rd quarter. Roman Butler Fullerton & Co. now owns 29,887 shares of the investment management company’s stock worth $550,000 after purchasing an additional 656 shares in the last quarter. Institutional investors own 27.38% of the company’s stock.

Ares Capital News Summary

Here are the key news stories impacting Ares Capital this week:

• Positive Sentiment: $2.6 billion MFIC acquisition could enhance scale: Ares Capital agreed to acquire Apollo-affiliated MidCap Financial Investment Corporation (NASDAQ: MFIC) in a stock-and-cash transaction. The deal is expected to strengthen ARCC’s position as the largest publicly traded business development company, diversify its portfolio and potentially increase core earnings per share. Closing is targeted for the first half of 2027, subject to shareholder and regulatory approval. Ares Capital Corporation Agrees to Acquire MidCap Financial Investment Corporation
• Positive Sentiment: Dividend remains steady: ARCC declared a fourth-quarter dividend of $0.48 per share, payable December 29 to shareholders of record December 15. The unchanged payout supports the stock’s income appeal, although investors may focus on its coverage after the earnings release. Ares Capital dividend announcement
• Neutral Sentiment: Potential transaction-related concerns: A law firm announced an investigation into whether MFIC’s board satisfied its fiduciary duties in approving the sale. The announcement does not allege wrongdoing by ARCC, but additional scrutiny could create execution or timing risks for the acquisition. MFIC shareholder investigation
• Negative Sentiment: Third-quarter results missed expectations: Core earnings per share were $0.46 versus the $0.48 consensus estimate, while revenue of $763 million fell short of the $776.34 million forecast and declined 2.4% year over year. Earnings also decreased from $0.50 per share a year earlier. Reports attributed the pressure partly to a slower transaction environment, raising questions about near-term earnings and dividend coverage. Ares Capital Q3 earnings miss

Analysts Set New Price Targets

Several research analysts have commented on the company. Wall Street Zen upgraded Ares Capital from a “sell” rating to a “hold” rating in a research note on Saturday, September 19th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Ares Capital in a report on Friday, September 4th. JPMorgan Chase & Co. decreased their price target on Ares Capital from $19.00 to $18.50 and set an “overweight” rating on the stock in a research report on Thursday, July 2nd. Truist Financial lowered their price target on shares of Ares Capital from $22.00 to $21.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Finally, UBS Group increased their price target on shares of Ares Capital from $19.00 to $21.00 and gave the stock a “neutral” rating in a report on Tuesday, September 1st. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $20.39.

Ares Capital Stock Performance

Ares Capital stock opened at $18.51 on Wednesday. Ares Capital Corporation has a 52 week low of $17.40 and a 52 week high of $21.14. The business has a 50-day simple moving average of $19.27 and a 200 day simple moving average of $19.06.

Ares Capital (NASDAQ:ARCC) last announced its earnings results on Tuesday, October 27th. The investment management company reported $0.46 earnings per share for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.02). The business had revenue of $763.00 million during the quarter, compared to analyst estimates of $776.34 million. During the same quarter in the prior year, the company earned $0.50 EPS. The firm’s revenue was down 2.4% on a year-over-year basis. Analysts forecast that Ares Capital Corporation will post 1.91 EPS for the current fiscal year.

Ares Capital Profile

Ares Capital Corporation (NASDAQ: ARCC) is a business development company that provides financing to middle-market companies. The company primarily invests in first-lien senior secured loans, second-lien loans, subordinated debt, and, to a lesser extent, equity securities. Its investments are generally designed to support acquisitions, recapitalizations, refinancings, growth initiatives, and other corporate activities.

Founded in 2004, Ares Capital is externally managed by Ares Capital Management LLC, an affiliate of Ares Management Corporation.