Muzinich & Co. Inc. Acquires 502,493 Shares of Ares Capital Corporation $ARCC

Muzinich & Co. Inc. grew its holdings in shares of Ares Capital Corporation (NASDAQ:ARCC) by 30.6% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 2,142,606 shares of the investment management company’s stock after purchasing an additional 502,493 shares during the period. Ares Capital comprises 13.6% of Muzinich & Co. Inc.’s holdings, making the stock its largest holding. Muzinich & Co. Inc.’s holdings in Ares Capital were worth $43,345,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently made changes to their positions in the business. Canal Capital Management LLC grew its position in shares of Ares Capital by 1.6% during the 4th quarter. Canal Capital Management LLC now owns 32,955 shares of the investment management company’s stock worth $667,000 after purchasing an additional 520 shares in the last quarter. BKM Wealth Management LLC grew its position in shares of Ares Capital by 1.3% during the 3rd quarter. BKM Wealth Management LLC now owns 42,394 shares of the investment management company’s stock worth $865,000 after purchasing an additional 525 shares in the last quarter. FSC Wealth Advisors LLC lifted its holdings in shares of Ares Capital by 10.0% during the 2nd quarter. FSC Wealth Advisors LLC now owns 5,830 shares of the investment management company’s stock worth $128,000 after acquiring an additional 530 shares during the period. Perigon Wealth Management LLC lifted its holdings in shares of Ares Capital by 1.6% during the 4th quarter. Perigon Wealth Management LLC now owns 34,700 shares of the investment management company’s stock worth $702,000 after acquiring an additional 547 shares during the period. Finally, Balboa Wealth Partners lifted its holdings in shares of Ares Capital by 1.3% during the 3rd quarter. Balboa Wealth Partners now owns 44,755 shares of the investment management company’s stock worth $913,000 after acquiring an additional 559 shares during the period. Institutional investors and hedge funds own 27.38% of the company’s stock.

Insider Buying and Selling

In related news, CEO Michael Kort Schnabel bought 12,500 shares of the business’s stock in a transaction on Thursday, February 5th. The shares were purchased at an average price of $19.13 per share, for a total transaction of $239,125.00. Following the completion of the transaction, the chief executive officer directly owned 40,500 shares of the company’s stock, valued at approximately $774,765. This represents a 44.64% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, CFO Scott C. Lem bought 5,186 shares of the business’s stock in a transaction on Friday, February 6th. The stock was bought at an average price of $19.29 per share, for a total transaction of $100,037.94. Following the transaction, the chief financial officer directly owned 39,463 shares of the company’s stock, valued at approximately $761,241.27. This represents a 15.13% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 0.49% of the company’s stock.

Ares Capital Stock Performance

Shares of Ares Capital stock opened at $18.05 on Wednesday. The company has a 50 day moving average of $18.79 and a 200-day moving average of $19.77. Ares Capital Corporation has a 1-year low of $17.40 and a 1-year high of $23.42. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.12. The company has a market cap of $12.96 billion, a PE ratio of 9.70 and a beta of 0.58.

Ares Capital (NASDAQ:ARCC) last issued its earnings results on Wednesday, February 4th. The investment management company reported $0.50 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.50. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The firm had revenue of $793.00 million for the quarter, compared to analyst estimates of $795.20 million. During the same quarter last year, the business posted $0.55 earnings per share. The company’s quarterly revenue was up 4.5% on a year-over-year basis. As a group, equities research analysts forecast that Ares Capital Corporation will post 2.19 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Friday, March 13th were given a $0.48 dividend. The ex-dividend date was Friday, March 13th. This represents a $1.92 dividend on an annualized basis and a yield of 10.6%. Ares Capital’s dividend payout ratio (DPR) is currently 103.23%.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. JPMorgan Chase & Co. cut their price target on shares of Ares Capital from $22.00 to $19.00 and set an “overweight” rating for the company in a report on Friday, March 13th. Wall Street Zen downgraded shares of Ares Capital from a “hold” rating to a “sell” rating in a report on Saturday, February 7th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Ares Capital in a report on Monday, December 29th. Wells Fargo & Company cut their price target on shares of Ares Capital from $21.00 to $20.00 and set an “overweight” rating for the company in a report on Thursday, February 5th. Finally, Royal Bank Of Canada cut their price target on shares of Ares Capital from $23.00 to $22.00 and set an “outperform” rating for the company in a report on Monday, February 9th. Seven equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Ares Capital currently has a consensus rating of “Moderate Buy” and an average target price of $21.38.

About Ares Capital

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.