PNC Financial Services Group Inc. lowered its stake in Ares Capital Corporation (NASDAQ:ARCC – Free Report) by 41.3% during the first quarter, Holdings Channel reports. The firm owned 66,960 shares of the investment management company’s stock after selling 47,204 shares during the period. PNC Financial Services Group Inc.’s holdings in Ares Capital were worth $1,207,000 at the end of the most recent reporting period.
A number of other hedge funds and other institutional investors have also bought and sold shares of ARCC. Roman Butler Fullerton & Co. lifted its position in Ares Capital by 1.9% during the first quarter. Roman Butler Fullerton & Co. now owns 27,713 shares of the investment management company’s stock worth $504,000 after purchasing an additional 528 shares during the period. First Citizens Bank & Trust Co. increased its holdings in Ares Capital by 5.3% in the 4th quarter. First Citizens Bank & Trust Co. now owns 10,530 shares of the investment management company’s stock valued at $213,000 after buying an additional 532 shares during the period. Perigon Wealth Management LLC increased its holdings in Ares Capital by 1.6% in the 4th quarter. Perigon Wealth Management LLC now owns 34,700 shares of the investment management company’s stock valued at $702,000 after buying an additional 547 shares during the period. Diversify Advisory Services LLC increased its holdings in Ares Capital by 2.0% in the 4th quarter. Diversify Advisory Services LLC now owns 28,186 shares of the investment management company’s stock valued at $589,000 after buying an additional 563 shares during the period. Finally, CWS Financial Advisors LLC raised its position in shares of Ares Capital by 4.0% in the 1st quarter. CWS Financial Advisors LLC now owns 14,956 shares of the investment management company’s stock valued at $270,000 after buying an additional 582 shares in the last quarter. Institutional investors and hedge funds own 27.38% of the company’s stock.
Key Headlines Impacting Ares Capital
Here are the key news stories impacting Ares Capital this week:
- Positive Sentiment: Second-quarter earnings held up, with adjusted EPS of $0.47 matching estimates and investment income remaining resilient. Management also highlighted ARCC’s scale, improving lending terms and balance-sheet flexibility despite a slower transaction market. Ares Capital’s Q2 Earnings Call Highlights Market Strength
- Positive Sentiment: ARCC declared a quarterly dividend of $0.48 per share, payable September 30 to shareholders of record September 15. The roughly 10.2% annualized yield and 17-year dividend streak support the stock’s appeal to income-focused investors. Ares Capital Just Extended Its Dividend Streak to 17 Years
- Positive Sentiment: Truist maintained a “buy” rating with a $21 price target, while Keefe, Bruyette & Woods retained an “outperform” rating with a $20 target, indicating analysts still see potential upside from current levels. Analyst Price Target Updates
- Neutral Sentiment: Broader private-credit results remained resilient, and strong fundraising across the Ares platform points to continued institutional demand. However, elevated defaults, retail redemptions and liquidity concerns remain important industry risks. Private Credit Roundup
- Negative Sentiment: Five ARCC borrowers were moved to non-accrual status during the second quarter. The largest was an $84.6 million subordinated loan to AmeriVet Veterinary Partners, raising concerns about portfolio credit quality and potential pressure on net asset value. Ares BDC Moves Five Borrowers to Non-Accrual
- Negative Sentiment: Although quarterly revenue was close to expectations, year-over-year expenses increased and unrealized losses weighed on results. Both Truist and KBW lowered their price targets, signaling a more cautious outlook even while keeping positive ratings. ARCC Stock Dips as Q2 Earnings Meet Estimates
Analyst Ratings Changes
View Our Latest Stock Analysis on ARCC
Ares Capital Trading Down 0.4%
ARCC opened at $18.76 on Friday. The company’s 50 day moving average is $18.67 and its 200-day moving average is $18.91. Ares Capital Corporation has a 1-year low of $17.40 and a 1-year high of $22.85. The company has a current ratio of 1.28, a quick ratio of 1.40 and a debt-to-equity ratio of 1.14. The company has a market cap of $13.47 billion, a P/E ratio of 13.90 and a beta of 0.56.
Ares Capital (NASDAQ:ARCC – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.47. The company had revenue of $768.00 million for the quarter, compared to analyst estimates of $770.19 million. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. During the same period in the previous year, the firm posted $0.50 EPS. Equities research analysts predict that Ares Capital Corporation will post 1.9 earnings per share for the current fiscal year.
Ares Capital Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be given a $0.48 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $1.92 dividend on an annualized basis and a yield of 10.2%. Ares Capital’s dividend payout ratio (DPR) is currently 142.22%.
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.
Read More
- Five stocks we like better than Ares Capital
- Chevron’s Strong Quarter Shows Why It Still Leads the Energy Sector
- Amazon’s Earnings Beat Shows Why AWS Is Back at the Center of the Bull Case
- Apple’s Record Quarter Could Not Outrun Its Guidance Problem
- McKesson’s Compounding Keeps Adding Up
Want to see what other hedge funds are holding ARCC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Ares Capital Corporation (NASDAQ:ARCC – Free Report).
Receive News & Ratings for Ares Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ares Capital and related companies with MarketBeat.com's FREE daily email newsletter.
