Ares Capital (NASDAQ:ARCC) CFO Purchases $100,037.94 in Stock

Ares Capital Corporation (NASDAQ:ARCC) CFO Scott Lem acquired 5,186 shares of the business’s stock in a transaction dated Friday, February 6th. The stock was purchased at an average cost of $19.29 per share, with a total value of $100,037.94. Following the transaction, the chief financial officer owned 39,463 shares of the company’s stock, valued at approximately $761,241.27. The trade was a 15.13% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.

Ares Capital Stock Down 0.3%

Shares of NASDAQ ARCC opened at $19.91 on Thursday. The firm has a market cap of $14.30 billion, a P/E ratio of 10.70 and a beta of 0.59. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.70 and a current ratio of 1.70. Ares Capital Corporation has a 1 year low of $18.26 and a 1 year high of $23.63. The firm’s 50 day moving average price is $20.33 and its 200 day moving average price is $20.80.

Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings results on Wednesday, February 4th. The investment management company reported $0.50 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.50. Ares Capital had a return on equity of 9.89% and a net margin of 42.56%.The company had revenue of $793.00 million for the quarter, compared to analyst estimates of $795.20 million. During the same quarter in the prior year, the company posted $0.55 EPS. The business’s revenue for the quarter was up 4.5% compared to the same quarter last year. As a group, sell-side analysts anticipate that Ares Capital Corporation will post 2.19 earnings per share for the current year.

Ares Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 13th will be given a dividend of $0.48 per share. The ex-dividend date is Friday, March 13th. This represents a $1.92 annualized dividend and a yield of 9.6%. Ares Capital’s dividend payout ratio is 103.23%.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on ARCC. Keefe, Bruyette & Woods cut their price objective on shares of Ares Capital from $23.00 to $22.00 and set an “outperform” rating on the stock in a report on Wednesday, October 29th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Ares Capital in a research note on Monday, December 29th. Citigroup reissued a “market outperform” rating on shares of Ares Capital in a research note on Thursday, October 30th. B. Riley Financial reissued a “buy” rating on shares of Ares Capital in a research note on Monday. Finally, Royal Bank Of Canada cut their target price on Ares Capital from $23.00 to $22.00 and set an “outperform” rating on the stock in a research report on Monday. Seven analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, Ares Capital has a consensus rating of “Moderate Buy” and a consensus price target of $22.00.

More Ares Capital News

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

• Positive Sentiment: Senior insiders bought stock: CEO Michael Kort Schnabel purchased 12,500 shares and CFO Scott Lem bought 5,186 shares in early February — a bullish signal of management confidence in the shares. Insider Trading Alert
• Positive Sentiment: Truist Financial reiterated a Buy rating on ARCC, which supports investor demand and provides a near-term analyst-backed floor under the stock. Truist Buy Rating
• Positive Sentiment: Sector commentary: a Seeking Alpha piece flags that many BDCs face dividend pressure if rates fall, but names ARCC as relatively resilient due to scale and premium positioning — a qualitative positive for longer-term dividend stability. Seeking Alpha: BDC Dividend Risk
• Neutral Sentiment: Macro note: a strong jobs report reduced near-term odds of multiple Fed cuts, and a roundup suggested locking in high-yield dividend names — macro-driven rate path could help BDC yields if rates stay higher longer. Jobs Report / High-Yield Roundup
• Neutral Sentiment: Data oddity on short interest: two recent short-interest reports show 0 shares and NaN changes — likely a reporting error; no actionable signal from short-interest days-to-cover given the anomalous figures.
• Neutral Sentiment: Comparative coverage: some outlets highlight alternative high-yield names (e.g., Realty Income) as better buys today, underscoring competition for income-seeking capital but not directly implying deterioration at ARCC. Fool: Comparative Idea
• Negative Sentiment: Royal Bank of Canada issued a pessimistic forecast for ARCC’s stock price, introducing downside pressure from an influential analyst. RBC Pessimistic Forecast

Hedge Funds Weigh In On Ares Capital

A number of hedge funds have recently made changes to their positions in ARCC. City Holding Co. increased its holdings in Ares Capital by 444.4% in the 3rd quarter. City Holding Co. now owns 1,225 shares of the investment management company’s stock valued at $25,000 after purchasing an additional 1,000 shares in the last quarter. Palladiem LLC purchased a new stake in shares of Ares Capital in the fourth quarter worth about $26,000. SWAN Capital LLC acquired a new stake in shares of Ares Capital in the third quarter valued at about $27,000. Fourth Dimension Wealth LLC acquired a new stake in shares of Ares Capital in the second quarter valued at about $29,000. Finally, NBT Bank N A NY purchased a new stake in shares of Ares Capital during the 3rd quarter valued at about $31,000. Hedge funds and other institutional investors own 27.38% of the company’s stock.

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.