Glassy Mountain Advisors Inc. Makes New Investment in Ares Capital Co. (NASDAQ:ARCC)

Glassy Mountain Advisors Inc. purchased a new position in Ares Capital Co. (NASDAQ:ARCC – Get Rating) in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 124,849 shares of the investment management company’s stock, valued at approximately $2,306,000. Ares Capital makes up approximately 1.3% of Glassy Mountain Advisors Inc.’s portfolio, making the stock its 28th biggest position.

Several other institutional investors have also added to or reduced their stakes in the business. Confluence Investment Management LLC boosted its holdings in Ares Capital by 1.4% in the fourth quarter. Confluence Investment Management LLC now owns 4,528,922 shares of the investment management company’s stock worth $83,649,000 after acquiring an additional 63,596 shares in the last quarter. Enstar Group LTD lifted its holdings in shares of Ares Capital by 3.4% during the third quarter. Enstar Group LTD now owns 4,011,095 shares of the investment management company’s stock worth $67,708,000 after purchasing an additional 130,686 shares during the period. Legal & General Group Plc lifted its holdings in shares of Ares Capital by 12.8% during the second quarter. Legal & General Group Plc now owns 3,420,945 shares of the investment management company’s stock worth $61,389,000 after purchasing an additional 387,904 shares during the period. Two Sigma Advisers LP lifted its holdings in shares of Ares Capital by 15.7% during the third quarter. Two Sigma Advisers LP now owns 3,310,200 shares of the investment management company’s stock worth $55,876,000 after purchasing an additional 448,800 shares during the period. Finally, Advisors Capital Management LLC lifted its holdings in shares of Ares Capital by 1.6% during the third quarter. Advisors Capital Management LLC now owns 2,800,873 shares of the investment management company’s stock worth $54,169,000 after purchasing an additional 43,020 shares during the period. Institutional investors and hedge funds own 32.24% of the company’s stock.

Wall Street Analyst Weigh In

A number of research firms recently commented on ARCC. Citigroup lifted their target price on Ares Capital from $21.00 to $22.00 and gave the stock a “buy” rating in a report on Wednesday, February 8th. StockNews.com began coverage on Ares Capital in a report on Thursday. They set a “hold” rating for the company. JMP Securities reaffirmed a “market outperform” rating and set a $23.00 target price on shares of Ares Capital in a report on Monday, March 13th. Finally, JPMorgan Chase & Co. reduced their price target on Ares Capital from $21.00 to $20.50 and set an “overweight” rating for the company in a research report on Wednesday, February 8th. One research analyst has rated the stock with a hold rating and seven have given a buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $20.71.

Ares Capital Stock Performance

ARCC stock traded down $0.36 during trading on Friday, hitting $17.43. 5,273,243 shares of the company traded hands, compared to its average volume of 3,542,337. The stock’s 50-day simple moving average is $19.20 and its 200 day simple moving average is $18.93. The company has a debt-to-equity ratio of 1.29, a current ratio of 0.99 and a quick ratio of 0.99. The company has a market cap of $9.26 billion, a PE ratio of 14.53 and a beta of 1.01. Ares Capital Co. has a 1 year low of $16.53 and a 1 year high of $22.65.

Ares Capital Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 31st. Stockholders of record on Wednesday, March 15th will be given a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 11.02%. The ex-dividend date of this dividend is Tuesday, March 14th. Ares Capital’s dividend payout ratio (DPR) is presently 160.00%.

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.