Ares Capital Corporation $ARCC Shares Bought by Advisors Capital Management LLC

Key Points

• Advisors Capital Management increased its stake in Ares Capital by 13.5% to 3,566,790 shares (about $72.16 million), making ARCC its 26th largest position and signaling notable institutional buying.
• Company insiders bought shares recently — CEO Michael Kort Schnabel purchased 12,500 shares at $19.13 and CFO Scott C. Lem bought 5,186 shares at $19.29 — materially increasing their ownership.
• Ares pays a high dividend (annualized $1.92, ~10.3% yield) but has a payout ratio above 100% and faces sector headwinds and some bearish analyst cuts, underlining strong income appeal alongside elevated risk.

Advisors Capital Management LLC lifted its stake in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 13.5% during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 3,566,790 shares of the investment management company's stock after acquiring an additional 423,795 shares during the period. Ares Capital accounts for about 0.8% of Advisors Capital Management LLC's investment portfolio, making the stock its 26th largest position. Advisors Capital Management LLC owned 0.50% of Ares Capital worth $72,156,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds also recently made changes to their positions in ARCC. City Holding Co. grew its position in Ares Capital by 444.4% in the third quarter. City Holding Co. now owns 1,225 shares of the investment management company's stock valued at $25,000 after acquiring an additional 1,000 shares in the last quarter. SWAN Capital LLC acquired a new stake in Ares Capital in the third quarter valued at approximately $27,000. NBT Bank N A NY acquired a new stake in Ares Capital in the third quarter valued at approximately $31,000. Quarry LP acquired a new stake in Ares Capital in the third quarter valued at approximately $33,000. Finally, Ameriflex Group Inc. grew its position in Ares Capital by 201.0% in the third quarter. Ameriflex Group Inc. now owns 1,764 shares of the investment management company's stock valued at $36,000 after acquiring an additional 1,178 shares in the last quarter. Institutional investors and hedge funds own 27.38% of the company's stock.

Ares Capital News Summary

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

• Positive Sentiment: Value/yield angle — Several commentators argue the recent pullback creates an opportunity to capture a 10%+ yield, framing ARCC as a high-income play for yield-seeking investors. Ares Capital's Drop Offers The Opportunity To Capture A 10%+ Yield
• Positive Sentiment: Bullish analyst/blog coverage — Recent write-ups highlight ARCC's low forward P/E and dividend-focused total-return case, reinforcing demand from income-oriented investors. Is Ares Capital Corporation (ARCC) A Good Stock To Buy Now?
• Neutral Sentiment: Quarterly outlook coverage — Articles summarizing Wall Street’s Q1 estimates flag key metrics to watch (yield, net investment income, portfolio credit performance), providing context but not a clear directional catalyst. Unveiling Ares Capital (ARCC) Q1 Outlook
• Neutral Sentiment: Short-interest data appears to show no meaningful short position (report shows 0 shares / 0.0 days), likely a data anomaly — not currently a clear market pressure point.
• Negative Sentiment: Sector outflows — Coverage on private-credit funds notes recent outflows and investor caution; broad weakness in private credit could weigh on ARCC’s fundraising, portfolio valuations and investor sentiment. It’s Crunchtime for Private Credit
• Negative Sentiment: Bearish forecasts and recent price action — A pessimistic price outlook from Citizens Jmp and articles noting ARCC’s sharper-than-market drop earlier in the week underscore downside risk and continued investor caution. Citizens Jmp Issues Pessimistic Forecast Ares Capital (ARCC) Falls More Steeply Than Broader Market

Insider Transactions at Ares Capital

In other news, CEO Michael Kort Schnabel purchased 12,500 shares of the firm's stock in a transaction on Thursday, February 5th. The stock was bought at an average cost of $19.13 per share, for a total transaction of $239,125.00. Following the completion of the acquisition, the chief executive officer directly owned 40,500 shares of the company's stock, valued at approximately $774,765. The trade was a 44.64% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Scott C. Lem purchased 5,186 shares of the business's stock in a transaction dated Friday, February 6th. The shares were acquired at an average price of $19.29 per share, with a total value of $100,037.94. Following the completion of the acquisition, 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 disclosure for this purchase is available in the SEC filing. Company insiders own 0.49% of the company's stock.

Analyst Ratings Changes

Several analysts have issued reports on the stock. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Ares Capital in a research report on Monday, December 29th. Wells Fargo & Company cut their price target on shares of Ares Capital from $21.00 to $20.00 and set an "overweight" rating on the stock in a report on Thursday, February 5th. B. Riley Financial reiterated a "buy" rating on shares of Ares Capital in a research note on Monday, February 9th. Royal Bank Of Canada reduced their price objective on shares of Ares Capital from $23.00 to $22.00 and set an "outperform" rating on the stock in a research note on Monday, February 9th. Finally, Keefe, Bruyette & Woods reduced their price objective on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating on the stock in a research note on Thursday, April 16th. Seven equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $21.13.

Ares Capital Price Performance

Shares of NASDAQ:ARCC opened at $18.67 on Friday. The firm's 50 day moving average is $18.54 and its two-hundred day moving average is $19.62. Ares Capital Corporation has a 52 week low of $17.40 and a 52 week high of $23.42. The firm has a market capitalization of $13.41 billion, a P/E ratio of 10.04 and a beta of 0.58. 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 (NASDAQ:ARCC - Get Free Report) last issued its quarterly earnings data on Wednesday, February 4th. The investment management company reported $0.50 earnings per share for the quarter, meeting analysts' consensus estimates of $0.50. The business had revenue of $793.00 million for the quarter, compared to analysts' expectations of $795.20 million. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The company's revenue was up 4.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.55 earnings per share. Analysts anticipate that Ares Capital Corporation will post 1.93 earnings per share for the current year.

Ares Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Friday, March 13th were given a dividend of $0.48 per share. The ex-dividend date was Friday, March 13th. This represents a $1.92 dividend on an annualized basis and a yield of 10.3%. Ares Capital's dividend payout ratio (DPR) is presently 103.23%.

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.

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