Key Points
- CFO Scott Lem bought 5,186 shares on Feb. 6 at $19.29 each (total $100,037.94), increasing his stake by 15.13% to 39,463 shares (≈$761,241), according to an SEC filing.
- Ares declared a quarterly dividend of $0.48 (annualized $1.92) with an indicated yield of 9.9% and an ex‑dividend/record date of March 13, while the dividend payout ratio is elevated at about 103%.
- Recent quarter: EPS of $0.50 met estimates while revenue of $793M slightly missed expectations, and analysts hold a consensus "Moderate Buy" with a $22 target; the stock trades at a P/E of roughly 10.5.
Ares Capital Corporation (NASDAQ:ARCC - Get Free Report) CFO Scott Lem purchased 5,186 shares of the firm'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 completion of the acquisition, the chief financial officer directly owned 39,463 shares in the company, valued at approximately $761,241.27. This trade represents a 15.13% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink.
Ares Capital Price Performance
ARCC opened at $19.48 on Tuesday. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 1.12. The company's 50-day moving average price is $20.36 and its 200 day moving average price is $20.83. Ares Capital Corporation has a fifty-two week low of $18.26 and a fifty-two week high of $23.63. The firm has a market cap of $13.99 billion, a price-to-earnings ratio of 10.47 and a beta of 0.59.
Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its earnings results on Wednesday, February 4th. The investment management company reported $0.50 EPS for the quarter, meeting the consensus estimate of $0.50. The company had revenue of $793.00 million during the quarter, compared to analyst estimates of $795.20 million. Ares Capital had a return on equity of 9.89% and a net margin of 42.56%.The business's revenue was up 4.5% compared to the same quarter last year. During the same period in the prior year, the company earned $0.55 earnings per share. As a group, sell-side analysts expect that Ares Capital Corporation will post 2.19 earnings per share for the current year.
Ares Capital Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Friday, March 13th will be given a $0.48 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $1.92 annualized dividend and a yield of 9.9%. Ares Capital's dividend payout ratio (DPR) is currently 103.23%.
Analyst Ratings Changes
Several research firms have recently commented on ARCC. Weiss Ratings restated a "hold (c+)" rating on shares of Ares Capital in a research report on Monday, December 29th. UBS Group reduced their target price on shares of Ares Capital from $22.50 to $21.00 and set a "neutral" rating for the company in a research note on Tuesday, October 14th. Wall Street Zen cut shares of Ares Capital from a "hold" rating to a "sell" rating in a research report on Saturday. Wells Fargo & Company cut their price target on Ares Capital from $21.00 to $20.00 and set an "overweight" rating on the stock in a report on Thursday, February 5th. Finally, B. Riley Financial reiterated a "buy" rating on shares of Ares Capital 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 presently has a consensus rating of "Moderate Buy" and a consensus target price of $22.00.
View Our Latest Research Report on Ares Capital
Institutional Trading of Ares Capital
Institutional investors and hedge funds have recently added to or reduced their stakes in the business. UBS Group AG raised its position in shares of Ares Capital by 41.8% during the fourth quarter. UBS Group AG now owns 11,201,905 shares of the investment management company's stock worth $226,615,000 after purchasing an additional 3,301,890 shares during the period. Invesco Ltd. increased its stake in Ares Capital by 825.4% in the 2nd quarter. Invesco Ltd. now owns 3,551,711 shares of the investment management company's stock valued at $77,996,000 after buying an additional 3,167,906 shares during the period. Marshall Wace LLP acquired a new position in shares of Ares Capital in the third quarter worth $36,943,000. JPMorgan Chase & Co. increased its position in Ares Capital by 18.6% in the 2nd quarter. JPMorgan Chase & Co. now owns 6,404,876 shares of the investment management company's stock worth $140,651,000 after purchasing an additional 1,006,460 shares during the last quarter. Finally, OMERS ADMINISTRATION Corp raised its position in Ares Capital by 56.9% during the second quarter. OMERS ADMINISTRATION Corp now owns 2,342,324 shares of the investment management company's stock valued at $51,437,000 after acquiring an additional 849,097 shares in the last quarter. 27.38% of the stock is owned by institutional investors and hedge funds.
About Ares Capital
(
Get Free Report)
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.
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