Muzinich & Co. Inc. significantly increased its investment in Ares Capital Corporation (NASDAQ: ARCC) during the second quarter of 2023, acquiring an additional 247,800 shares. This move raised Muzinich’s total holdings in the investment management company to 1,373,051 shares, reflecting a 22.0% increase in its position. Ares Capital now constitutes approximately 13.1% of Muzinich’s total portfolio, making it the firm’s largest investment, valued at $30,152,000 as of the latest filing with the U.S. Securities and Exchange Commission (SEC).
Several other institutional investors have also recently adjusted their stakes in Ares Capital. For instance, Elequin Capital LP entered the market with a new investment valued at $30,000 in the first quarter. In the second quarter, CNB Bank, Harbor Asset Planning Inc., and Wolff Wiese Magana LLC made new investments worth $36,000, $38,000, and $40,000, respectively. Additionally, Investment Management Corp VA ADV boosted its position by 193.9% in the first quarter, now owning 1,828 shares valued at $41,000.
Approximately 27.38% of Ares Capital’s stock is currently held by hedge funds and institutional investors.
Analyst Ratings and Stock Performance
Recent evaluations from financial analysts indicate a mixed outlook for Ares Capital. The Royal Bank of Canada lowered its target price from $24.00 to $23.00 while maintaining an “outperform” rating. Citigroup reiterated a “market outperform” rating, whereas Capital One Financial set a target price of $22.50. B. Riley upgraded Ares Capital from a “neutral” to a “buy” rating, increasing its price target from $22.50 to $23.50. Conversely, UBS Group reduced its price objective from $22.50 to $21.00, assigning a “neutral” rating.
Currently, eight investment analysts have given Ares Capital a Buy rating, while two have assigned a Hold rating. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” with a price target of $22.25.
Ares Capital’s stock opened at $20.61 on Thursday, with a 52-week low of $18.26 and a high of $23.84. The company reports a market capitalization of $14.54 billion, a price-to-earnings (PE) ratio of 10.31, and a beta of 0.68.
Quarterly Earnings and Dividend Announcement
On October 28, Ares Capital released its quarterly earnings, reporting earnings per share (EPS) of $0.50, matching analyst expectations. The firm generated $658.00 million in revenue, slightly below the projected $766.48 million. The company reported a net margin of 45.16% and a return on equity of 10.20%. In the same quarter of the previous year, Ares Capital had an EPS of $0.58.
Looking ahead, Ares Capital also announced a quarterly dividend of $0.48, scheduled for payment on December 30, 2023. Shareholders on record by December 15 will be eligible for this dividend, representing an annualized yield of 9.3%. The company’s payout ratio currently stands at 93.66%.
Ares Capital Corporation focuses on providing financial solutions to middle-market companies through acquisition, recapitalization, and growth capital strategies. The firm targets investments across various sectors, including manufacturing, business services, healthcare, and information technology.
For those interested in the latest developments regarding Ares Capital and its stakeholders, detailed information can be found through various financial news platforms and market analytics services.
