CIBC Bancorp USA Inc. Buys New Stake in Ares Capital Corporation $ARCC

CIBC Bancorp USA Inc. purchased a new position in Ares Capital Corporation (NASDAQ:ARCC) during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 485,972 shares of the investment management company’s stock, valued at approximately $9,919,000. CIBC Bancorp USA Inc. owned approximately 0.07% of Ares Capital as of its most recent SEC filing.

Other hedge funds and other institutional investors have also made changes to their positions in the company. City Holding Co. grew its holdings in Ares Capital by 444.4% during the 3rd quarter. City Holding Co. now owns 1,225 shares of the investment management company’s stock valued at $25,000 after buying an additional 1,000 shares in the last quarter. SWAN Capital LLC purchased a new stake in shares of Ares Capital during the 3rd quarter worth approximately $27,000. NBT Bank N A NY purchased a new stake in shares of Ares Capital during the 3rd quarter worth approximately $31,000. Quarry LP bought a new position in shares of Ares Capital during the 3rd quarter valued at approximately $33,000. Finally, WFA of San Diego LLC purchased a new position in shares of Ares Capital in the second quarter valued at $36,000. Institutional investors own 27.38% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on ARCC shares. Royal Bank Of Canada reduced their price target on shares of Ares Capital from $23.00 to $22.00 and set an “outperform” rating on the stock in a research report on Monday, February 9th. B. Riley Financial reissued a “buy” rating on shares of Ares Capital in a research note on Monday, February 9th. JPMorgan Chase & Co. reduced their target price on shares of Ares Capital from $22.00 to $19.00 and set an “overweight” rating on the stock in a report on Friday, March 13th. Wells Fargo & Company decreased their target price on shares of Ares Capital from $21.00 to $20.00 and set an “overweight” rating on the stock in a research report on Thursday, February 5th. Finally, UBS Group lowered their price target on shares of Ares Capital from $21.00 to $19.00 and set a “neutral” rating for the company in a report on Friday, March 13th. Seven equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $21.38.

Ares Capital Stock Down 1.3%

NASDAQ ARCC opened at $17.96 on Friday. The business has a fifty day moving average price of $19.45 and a 200 day moving average price of $20.13. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.70 and a current ratio of 1.70. The company has a market cap of $12.90 billion, a P/E ratio of 9.66 and a beta of 0.59. Ares Capital Corporation has a one year low of $17.59 and a one year high of $23.42.

Ares Capital (NASDAQ:ARCC) last announced its earnings results on Wednesday, February 4th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.50. The company had revenue of $793.00 million for the quarter, compared to analysts’ expectations of $795.20 million. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The firm’s quarterly revenue was up 4.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.55 EPS. Research analysts anticipate that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 13th will be paid a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 10.7%. The ex-dividend date of this dividend is Friday, March 13th. Ares Capital’s dividend payout ratio is currently 103.23%.

Insider Activity

In other Ares Capital news, CFO Scott C. Lem acquired 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 acquisition, the chief financial officer owned 39,463 shares in the company, valued at approximately $761,241.27. The trade was a 15.13% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Michael Kort Schnabel bought 12,500 shares of the firm’s stock in a transaction on Thursday, February 5th. The stock was acquired at an average cost of $19.13 per share, for a total transaction of $239,125.00. Following the completion of the purchase, the chief executive officer directly owned 40,500 shares in the company, valued at approximately $774,765. This represents a 44.64% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.49% of the stock is currently owned by corporate insiders.

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.