Ares Capital (NASDAQ:ARCC) CFO Scott Lem Purchases 5,186 Shares of Stock

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

Ares Capital Stock Performance

Shares of ARCC stock opened at $19.48 on Tuesday. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.12. The company has a market cap of $13.99 billion, a PE ratio of 10.47 and a beta of 0.59. The company’s fifty day simple moving average is $20.36 and its 200-day simple moving average is $20.83. Ares Capital Corporation has a 52 week low of $18.26 and a 52 week high of $23.63.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings results on Wednesday, February 4th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.50. Ares Capital had a return on equity of 9.89% and a net margin of 42.56%.The firm had revenue of $793.00 million during the quarter, compared to the consensus estimate of $795.20 million. During the same period in the prior year, the firm earned $0.55 EPS. The firm’s quarterly revenue was up 4.5% compared to the same quarter last year. As a group, equities research analysts anticipate that Ares Capital Corporation will post 2.19 EPS for the current year.

Ares Capital Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 13th will be issued a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 9.9%. The ex-dividend date is Friday, March 13th. Ares Capital’s dividend payout ratio (DPR) is presently 103.23%.

Analyst Upgrades and Downgrades

ARCC has been the topic of a number of analyst reports. Wall Street Zen lowered shares of Ares Capital from a “hold” rating to a “sell” rating in a research note on Saturday. Wells Fargo & Company dropped their price target on shares of Ares Capital from $21.00 to $20.00 and set an “overweight” rating on the stock in a research note on Thursday, February 5th. Citigroup reissued a “market outperform” rating on shares of Ares Capital in a research report on Thursday, October 30th. UBS Group dropped their target price on Ares Capital from $22.50 to $21.00 and set a “neutral” rating on the stock in a research report on Tuesday, October 14th. Finally, B. Riley Financial reiterated a “buy” rating on shares of Ares Capital in a research note on Monday. Seven equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $22.00.

Hedge Funds Weigh In On Ares Capital

Several large investors have recently modified their holdings of ARCC. Prostatis Group LLC increased its holdings in Ares Capital by 2.1% in the second quarter. Prostatis Group LLC now owns 22,236 shares of the investment management company’s stock valued at $488,000 after buying an additional 468 shares during the last quarter. Fountainhead AM LLC increased its holdings in shares of Ares Capital by 5.5% in the 2nd quarter. Fountainhead AM LLC now owns 9,728 shares of the investment management company’s stock valued at $214,000 after acquiring an additional 511 shares during the last quarter. Carnegie Lake Advisors LLC increased its holdings in shares of Ares Capital by 0.8% in the 2nd quarter. Carnegie Lake Advisors LLC now owns 65,514 shares of the investment management company’s stock valued at $1,439,000 after acquiring an additional 517 shares during the last quarter. Canal Capital Management LLC raised its position in shares of Ares Capital by 1.6% during the 4th quarter. Canal Capital Management LLC now owns 32,955 shares of the investment management company’s stock valued at $667,000 after acquiring an additional 520 shares in the last quarter. Finally, BKM Wealth Management LLC lifted its stake in Ares Capital by 1.3% during the third quarter. BKM Wealth Management LLC now owns 42,394 shares of the investment management company’s stock worth $865,000 after purchasing an additional 525 shares during the last quarter. Institutional investors own 27.38% of the company’s stock.

About Ares Capital

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.