Ares Capital Corporation $ARCC Stock: Welch Financial Planning LLC Reduces Holdings

Welch Financial Planning LLC decreased its holdings in Ares Capital Corporation (NASDAQ:ARCC) by 81.2% during the third quarter, Holdings Channel.com reports. The firm owned 20,876 shares of the investment management company’s stock after selling 90,105 shares during the period. Welch Financial Planning LLC’s holdings in Ares Capital were worth $399,000 as of its most recent SEC filing.

A number of other hedge funds have also made changes to their positions in the stock. Orion Capital Management LLC acquired a new stake in shares of Ares Capital during the second quarter worth approximately $25,000. Fortitude Family Office LLC grew its position in Ares Capital by 145.2% during the third quarter. Fortitude Family Office LLC now owns 1,297 shares of the investment management company’s stock valued at $25,000 after purchasing an additional 768 shares in the last quarter. Three Bridge Wealth Advisors LLC purchased a new position in Ares Capital during the third quarter valued at approximately $27,000. Continuum Advisory LLC acquired a new position in Ares Capital in the 2nd quarter valued at approximately $30,000. Finally, TOP Private Wealth LLC. acquired a new position in Ares Capital in the 2nd quarter valued at approximately $31,000. 27.38% of the stock is owned by hedge funds and other institutional investors.

Ares Capital Stock Down 1.8%

ARCC opened at $19.11 on Friday. The company has a market capitalization of $13.80 billion, a PE ratio of 15.66 and a beta of 0.60. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.00 and a quick ratio of 1.00. Ares Capital Corporation has a fifty-two week low of $17.40 and a fifty-two week high of $21.14. The business has a 50-day moving average of $19.11 and a 200-day moving average of $18.97.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings results on Tuesday, October 27th. The investment management company reported $0.46 EPS for the quarter, missing the consensus estimate of $0.48 by ($0.02). The firm had revenue of $763.00 million during the quarter, compared to the consensus estimate of $776.34 million. Ares Capital had a net margin of 28.34% and a return on equity of 9.72%. The company’s quarterly revenue was down 2.4% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.50 EPS. Equities research analysts forecast that Ares Capital Corporation will post 1.88 EPS for the current fiscal year.

Ares Capital Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 29th. Investors of record on Tuesday, December 15th will be given a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 10.0%. The ex-dividend date of this dividend is Tuesday, December 15th. Ares Capital’s dividend payout ratio (DPR) is presently 157.38%.

Wall Street Analyst Weigh In

A number of research firms have issued reports on ARCC. Wall Street Zen downgraded shares of Ares Capital from a “hold” rating to a “sell” rating in a research report on Saturday, October 31st. Keefe, Bruyette & Woods lowered their price target on shares of Ares Capital from $21.00 to $20.00 and set an “outperform” rating on the stock in a report on Thursday, July 30th. Weiss Ratings restated a “hold (c)” rating on shares of Ares Capital in a report on Friday, September 4th. Citigroup reaffirmed a “market outperform” rating on shares of Ares Capital in a research note on Wednesday, October 28th. Finally, UBS Group upgraded Ares Capital from a “neutral” rating to a “buy” rating and set a $21.00 price objective for the company in a report on Thursday, October 29th. Nine research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, Ares Capital presently has an average rating of “Moderate Buy” and a consensus price target of $20.39.

Ares Capital Company Profile

Ares Capital Corporation is a business development company that provides financing to U.S. middle-market companies, including businesses backed by private equity firms. It is externally managed by Ares Capital Management, an affiliate of Ares Management Corporation. The company invests primarily in debt, including first-lien and second-lien loans and subordinated debt, and may also make equity investments. Its financing supports a range of business needs, such as acquisitions, growth, and refinancing.