Kovack Advisors Inc. Lowers Stake in Ares Capital Co. (NASDAQ:ARCC)

Posted by Defense World Staff on Jun 17th, 2023

Kovack Advisors Inc. reduced its holdings in shares of Ares Capital Co. (NASDAQ:ARCC – Get Rating) by 9.7% during the 4th quarter, according to its most recent 13F filing with the SEC. The fund owned 15,853 shares of the investment management company’s stock after selling 1,700 shares during the period. Kovack Advisors Inc.’s holdings in Ares Capital were worth $293,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors also recently bought and sold shares of the business. Joel Isaacson & Co. LLC grew its position in Ares Capital by 0.3% during the 4th quarter. Joel Isaacson & Co. LLC now owns 164,697 shares of the investment management company’s stock worth $3,042,000 after purchasing an additional 517 shares during the last quarter. Patriot Financial Group Insurance Agency LLC boosted its holdings in shares of Ares Capital by 4.7% in the fourth quarter. Patriot Financial Group Insurance Agency LLC now owns 12,797 shares of the investment management company’s stock valued at $236,000 after acquiring an additional 569 shares in the last quarter. All Season Financial Advisors Inc. boosted its holdings in shares of Ares Capital by 2.1% in the fourth quarter. All Season Financial Advisors Inc. now owns 30,504 shares of the investment management company’s stock valued at $563,000 after acquiring an additional 626 shares in the last quarter. Koshinski Asset Management Inc. boosted its holdings in shares of Ares Capital by 1.8% in the fourth quarter. Koshinski Asset Management Inc. now owns 36,462 shares of the investment management company’s stock valued at $673,000 after acquiring an additional 640 shares in the last quarter. Finally, Ellis Investment Partners LLC boosted its holdings in shares of Ares Capital by 49.9% in the third quarter. Ellis Investment Partners LLC now owns 2,082 shares of the investment management company’s stock valued at $35,000 after acquiring an additional 693 shares in the last quarter. 32.24% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Ares Capital

In related news, insider Michael Kort Schnabel bought 15,000 shares of the stock in a transaction that occurred on Tuesday, May 2nd. The stock was purchased at an average cost of $17.84 per share, for a total transaction of $267,600.00. Following the completion of the acquisition, the insider now owns 15,000 shares in the company, valued at $267,600. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.64% of the company’s stock.

Analyst Upgrades and Downgrades

ARCC has been the subject of several recent analyst reports. TheStreet upgraded shares of Ares Capital from a “c+” rating to a “b” rating in a research note on Thursday, May 25th. JMP Securities reduced their price objective on shares of Ares Capital from $23.00 to $20.00 in a research note on Thursday, April 27th. Citigroup reduced their price objective on shares of Ares Capital from $22.00 to $20.00 in a research note on Friday, April 28th. Wells Fargo & Company cut shares of Ares Capital from an “overweight” rating to an “equal weight” rating and reduced their price objective for the company from $20.00 to $18.00 in a research note on Tuesday, April 18th. Finally, B. Riley initiated coverage on shares of Ares Capital in a research note on Friday. They issued a “buy” rating and a $20.50 price objective for the company. Two research analysts have rated the stock with a hold rating and six have given a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $19.94.

Ares Capital Stock Performance

Shares of ARCC opened at $18.68 on Friday. The stock has a market cap of $10.17 billion, a P/E ratio of 14.59 and a beta of 1.01. Ares Capital Co. has a 12-month low of $16.53 and a 12-month high of $20.75. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 1.12. The company has a 50-day moving average of $18.51 and a two-hundred day moving average of $18.72.

Ares Capital (NASDAQ:ARCC – Get Rating) last issued its quarterly earnings results on Tuesday, April 25th. The investment management company reported $0.57 EPS for the quarter, missing analysts’ consensus estimates of $0.59 by ($0.02). The firm had revenue of $618.00 million for the quarter, compared to analysts’ expectations of $633.13 million. Ares Capital had a return on equity of 12.04% and a net margin of 29.33%. The business’s quarterly revenue was up 40.5% compared to the same quarter last year. During the same quarter last year, the firm earned $0.41 earnings per share. As a group, research analysts predict that Ares Capital Co. will post 2.31 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, June 30th. Stockholders of record on Thursday, June 15th will be issued a dividend of $0.48 per share. The ex-dividend date is Wednesday, June 14th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 10.28%. Ares Capital’s dividend payout ratio (DPR) is presently 150.00%.

About Ares Capital

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Ares Commercial Finance provides asset-based cash flow solutions to small and middle-market companies. ACF works with borrowers to deliver creative, flexible, and comprehensive financing solutions. Ares Commercial Finance has the ability to structure and agent deals to support the growth and changing capital needs of clients.