Michael Kort Schnabel Buys 12,500 Shares of Ares Capital (NASDAQ:ARCC) Stock

Ares Capital Corporation (NASDAQ:ARCC) CEO Michael Kort Schnabel acquired 12,500 shares of the firm’s stock in a transaction dated Thursday, February 5th. The stock was bought at an average cost of $19.13 per share, with a total value of $239,125.00. Following the acquisition, the chief executive officer owned 40,500 shares in the company, valued at approximately $774,765. This trade represents a 44.64% increase in their ownership of the stock. The transaction 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 business’s 50-day moving average price is $20.35 and its 200 day moving average price is $20.81. 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 firm has a market cap of $14.33 billion, a price-to-earnings ratio of 10.73 and a beta of 0.59. Ares Capital Corporation has a 52 week low of $18.26 and a 52 week high of $23.63.

Ares Capital (NASDAQ:ARCC) last released its quarterly earnings data on Wednesday, February 4th. The investment management company reported $0.50 EPS for the quarter, hitting the consensus estimate of $0.50. The business had revenue of $793.00 million for 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 quarterly revenue was up 4.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.55 EPS. As a group, sell-side analysts anticipate that Ares Capital Corporation will post 2.19 earnings per share for the current year.

Ares Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Friday, March 13th will be issued a $0.48 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $1.92 dividend on an annualized basis and a yield of 9.6%. Ares Capital’s payout ratio is presently 103.23%.

Key Stories 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

Analyst Upgrades and Downgrades

A number of research firms have recently commented on ARCC. Keefe, Bruyette & Woods dropped 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 Wednesday, October 29th. Wells Fargo & Company cut their price objective on Ares Capital from $21.00 to $20.00 and set an “overweight” rating for the company in a research report on Thursday, February 5th. UBS Group reduced their target price on Ares Capital from $22.50 to $21.00 and set a “neutral” rating for the company in a research note on Tuesday, October 14th. Royal Bank Of Canada decreased 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. Finally, B. Riley Financial reissued a “buy” rating on shares of Ares Capital in a report on Monday. Seven equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $22.00.

Institutional Investors Weigh In On Ares Capital

Several large investors have recently bought and sold shares of the company. UBS Group AG boosted its stake in shares of Ares Capital by 41.8% in the fourth quarter. UBS Group AG now owns 11,201,905 shares of the investment management company’s stock worth $226,615,000 after acquiring an additional 3,301,890 shares during the last quarter. Bank of America Corp DE boosted its stake in Ares Capital by 8.9% during the 2nd quarter. Bank of America Corp DE now owns 8,678,129 shares of the investment management company’s stock worth $190,572,000 after purchasing an additional 705,882 shares during the last quarter. JPMorgan Chase & Co. grew its holdings in shares of Ares Capital by 18.6% during the second quarter. JPMorgan Chase & Co. now owns 6,404,876 shares of the investment management company’s stock worth $140,651,000 after buying an additional 1,006,460 shares in the last quarter. Legal & General Group Plc raised its position in shares of Ares Capital by 16.4% in the fourth quarter. Legal & General Group Plc now owns 5,408,067 shares of the investment management company’s stock valued at $109,432,000 after buying an additional 761,838 shares during the last quarter. Finally, Ameriprise Financial Inc. raised its position in shares of Ares Capital by 6.3% in the second quarter. Ameriprise Financial Inc. now owns 3,794,378 shares of the investment management company’s stock valued at $83,353,000 after buying an additional 225,984 shares during the last quarter. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

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.