Ares Capital Corporation $ARCC Stock Acquired by Sigma Investment Counselors Inc.

Sigma Investment Counselors Inc. raised its holdings in Ares Capital Corporation (NASDAQ:ARCC) by 4.8% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 818,336 shares of the investment management company’s stock after purchasing an additional 37,220 shares during the quarter. Sigma Investment Counselors Inc. owned 0.11% of Ares Capital worth $15,630,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors have also recently made changes to their positions in ARCC. Generali Asset Management SPA SGR increased its holdings in Ares Capital by 5.3% during the third quarter. Generali Asset Management SPA SGR now owns 7,950,908 shares of the investment management company’s stock worth $151,862,000 after buying an additional 402,913 shares during the last quarter. MADDEN SECURITIES Corp bought a new stake in Ares Capital in the third quarter worth about $46,000. Latitude Advisors LLC bought a new stake in Ares Capital in the third quarter worth about $84,000. Foresight Capital Management Advisors Inc. boosted its stake in Ares Capital by 1.2% in the third quarter. Foresight Capital Management Advisors Inc. now owns 349,909 shares of the investment management company’s stock valued at $6,683,000 after acquiring an additional 4,131 shares during the last quarter. Finally, Roman Butler Fullerton & Co. boosted its stake in Ares Capital by 2.2% in the third quarter. Roman Butler Fullerton & Co. now owns 29,887 shares of the investment management company’s stock valued at $550,000 after acquiring an additional 656 shares during the last quarter. 27.38% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Ares Capital

Here are the key news stories impacting Ares Capital this week:

• Positive Sentiment: $2.6 billion MFIC acquisition could enhance scale: Ares Capital agreed to acquire Apollo-affiliated MidCap Financial Investment Corporation (NASDAQ: MFIC) in a stock-and-cash transaction. The deal is expected to strengthen ARCC’s position as the largest publicly traded business development company, diversify its portfolio and potentially increase core earnings per share. Closing is targeted for the first half of 2027, subject to shareholder and regulatory approval. Ares Capital Corporation Agrees to Acquire MidCap Financial Investment Corporation
• Positive Sentiment: Dividend remains steady: ARCC declared a fourth-quarter dividend of $0.48 per share, payable December 29 to shareholders of record December 15. The unchanged payout supports the stock’s income appeal, although investors may focus on its coverage after the earnings release. Ares Capital dividend announcement
• Neutral Sentiment: Potential transaction-related concerns: A law firm announced an investigation into whether MFIC’s board satisfied its fiduciary duties in approving the sale. The announcement does not allege wrongdoing by ARCC, but additional scrutiny could create execution or timing risks for the acquisition. MFIC shareholder investigation
• Negative Sentiment: Third-quarter results missed expectations: Core earnings per share were $0.46 versus the $0.48 consensus estimate, while revenue of $763 million fell short of the $776.34 million forecast and declined 2.4% year over year. Earnings also decreased from $0.50 per share a year earlier. Reports attributed the pressure partly to a slower transaction environment, raising questions about near-term earnings and dividend coverage. Ares Capital Q3 earnings miss

Ares Capital Price Performance

Shares of ARCC opened at $18.51 on Wednesday. The business has a 50-day moving average of $19.27 and a 200 day moving average of $19.06. Ares Capital Corporation has a fifty-two week low of $17.40 and a fifty-two week high of $21.14.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings data on Tuesday, October 27th. The investment management company reported $0.46 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.02). The company had revenue of $763.00 million during the quarter, compared to analyst estimates of $776.34 million. The business’s revenue for the quarter was down 2.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.50 EPS. On average, research analysts expect that Ares Capital Corporation will post 1.91 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the stock. Truist Financial reduced their target price on shares of Ares Capital from $22.00 to $21.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. Citigroup restated a “market outperform” rating on shares of Ares Capital in a research note on Wednesday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Ares Capital in a report on Friday, September 4th. Keefe, Bruyette & Woods dropped their price objective on Ares Capital from $21.00 to $20.00 and set an “outperform” rating on the stock in a research note on Thursday, July 30th. Finally, Wall Street Zen upgraded Ares Capital from a “sell” rating to a “hold” rating in a research note on Saturday, September 19th. Eight analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $20.39.

About Ares Capital

Ares Capital Corporation (NASDAQ: ARCC) is a business development company that provides financing to middle-market companies. The company primarily invests in first-lien senior secured loans, second-lien loans, subordinated debt, and, to a lesser extent, equity securities. Its investments are generally designed to support acquisitions, recapitalizations, refinancings, growth initiatives, and other corporate activities.

Founded in 2004, Ares Capital is externally managed by Ares Capital Management LLC, an affiliate of Ares Management Corporation.