Scott Lem Acquires 5,186 Shares of Ares Capital (NASDAQ:ARCC) 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 acquired at an average cost of $19.29 per share, for a total transaction of $100,037.94. Following the transaction, the chief financial officer owned 39,463 shares of the company’s stock, valued at $761,241.27. This represents a 15.13% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.

Ares Capital Stock Up 2.5%

Ares Capital stock opened at $19.96 on Wednesday. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.12. Ares Capital Corporation has a 1-year low of $18.26 and a 1-year high of $23.63. The company has a fifty day simple moving average of $20.35 and a 200 day simple moving average of $20.81. The company has a market cap of $14.33 billion, a P/E ratio of 10.73 and a beta of 0.59.

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

Ares Capital Dividend Announcement

The business also recently declared 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 of this dividend 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%.

Institutional Investors Weigh In On Ares Capital

A number of large investors have recently added to or reduced their stakes in the business. City Holding Co. boosted its position in Ares Capital by 444.4% during the third quarter. City Holding Co. now owns 1,225 shares of the investment management company’s stock worth $25,000 after purchasing an additional 1,000 shares during the period. SWAN Capital LLC bought a new stake in shares of Ares Capital during the 3rd quarter worth about $27,000. Fourth Dimension Wealth LLC acquired a new position in Ares Capital in the 2nd quarter valued at about $29,000. NBT Bank N A NY acquired a new position in Ares Capital in the 3rd quarter valued at about $31,000. Finally, CNB Bank bought a new position in Ares Capital in the 2nd quarter valued at about $36,000. Institutional investors own 27.38% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the company. B. Riley Financial reiterated a “buy” rating on shares of Ares Capital in a research note on Monday. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Ares Capital in a research report on Monday, December 29th. Citigroup reiterated a “market outperform” rating on shares of Ares Capital in a research note on Thursday, October 30th. Wells Fargo & Company lowered their price objective 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. Finally, Royal Bank Of Canada cut their target price on shares of Ares Capital from $23.00 to $22.00 and set an “outperform” rating for the company in a research note on Monday. Seven analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, Ares Capital currently has a consensus rating of “Moderate Buy” and a consensus price target of $22.00.

Key Headlines Impacting Ares Capital

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

• Positive Sentiment: Senior insider buying — CEO Michael Kort Schnabel purchased 12,500 shares (~$19.13 avg) and CFO Scott Lem bought 5,186 shares (~$19.29 avg). Large insider purchases increase confidence that management views the shares as undervalued and likely support the stock’s upward move. Insider Buying Alerts
• Positive Sentiment: Insider filings and SEC disclosures confirm the transactions and show material increases in both executives’ ownership stakes, signaling alignment with shareholders. CEO SEC Filing
• Neutral Sentiment: Dividend support — company declared a $0.48 quarterly dividend (annualized $1.92, ~9.9% yield). High yield attracts income investors but the payout ratio (~103% reported) flags sustainability risk; investors will watch portfolio income and capital preservation metrics. Dividend & Company Overview
• Neutral Sentiment: Selling/short-interest data appears anomalous (report shows 0 shares short and 0 days-to-cover) — likely a reporting error; absent a genuine rise in short interest, this item is unlikely to drive intraday volatility. Traders should monitor updated short-interest reports. Short Interest Note
• Neutral Sentiment: Sector commentary — some analysts warn BDCs face headwinds from falling loan yields and dividend pressure, but multiple write-ups single out ARCC as a higher-quality, more resilient BDC vs. weaker peers; this keeps ARCC in the “defensive” part of the BDC trade for yield-seeking investors. BDC Dividend Risk
• Negative Sentiment: Analyst adjustments — Royal Bank of Canada trimmed its price target from $23 to $22 (keeps an Outperform rating). Price-target trims signal cautiousness on upside and may cap short-term gains despite continued buy ratings from some houses. RBC Price Target Trim

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.