Ares Capital Corporation $ARCC Shares Purchased by UBS Group AG

Key Points

• UBS Group AG boosted its Ares Capital stake by 41.8% in Q4, buying 3,301,890 shares to hold 11,201,905 shares (about 1.57% of the company) valued at roughly $226.6 million.
• Ares declared a quarterly dividend of $0.48 per share (annualized $1.92), implying a 10.1% yield and a payout ratio of 103.23%, which supports income-focused investors but reflects a high payout level.
• Q1 results were mixed: Ares reported EPS of $0.47 (vs. $0.48 consensus) and $763M revenue (below estimates), while management highlighted a $1.8B deployment backlog and net investment income of about $398M.

UBS Group AG boosted its position in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 41.8% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 11,201,905 shares of the investment management company's stock after purchasing an additional 3,301,890 shares during the period. UBS Group AG owned approximately 1.57% of Ares Capital worth $226,615,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently bought and sold shares of the company. AQR Capital Management LLC increased its holdings in shares of Ares Capital by 6.5% during the 1st quarter. AQR Capital Management LLC now owns 16,502 shares of the investment management company's stock worth $365,000 after buying an additional 1,000 shares during the last quarter. Dynamic Technology Lab Private Ltd acquired a new position in Ares Capital in the first quarter valued at approximately $273,000. Goldman Sachs Group Inc. lifted its holdings in Ares Capital by 14.5% in the first quarter. Goldman Sachs Group Inc. now owns 2,835,007 shares of the investment management company's stock valued at $62,824,000 after acquiring an additional 358,829 shares during the last quarter. Empowered Funds LLC grew its position in Ares Capital by 139.9% in the first quarter. Empowered Funds LLC now owns 27,655 shares of the investment management company's stock worth $613,000 after acquiring an additional 16,128 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new stake in Ares Capital during the first quarter worth $14,766,000. 27.38% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Ares Capital

In related news, CEO Michael Kort Schnabel acquired 12,500 shares of Ares Capital stock in a transaction dated Thursday, February 5th. The shares were acquired at an average cost of $19.13 per share, for a total transaction of $239,125.00. Following the completion of the purchase, the chief executive officer owned 40,500 shares in the company, valued at approximately $774,765. The trade was a 44.64% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Scott C. Lem bought 5,186 shares of the firm's stock in a transaction that occurred on Friday, February 6th. The stock was bought 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 $761,241.27. This trade represents a 15.13% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 0.49% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the company. Wall Street Zen lowered Ares Capital from a "hold" rating to a "sell" rating in a research note on Saturday, February 7th. UBS Group reduced their price objective on shares of Ares Capital from $21.00 to $19.00 and set a "neutral" rating on the stock in a report on Friday, March 13th. JPMorgan Chase & Co. decreased their target price on shares of Ares Capital from $22.00 to $19.00 and set an "overweight" rating on the stock in a research report on Friday, March 13th. Keefe, Bruyette & Woods lowered their target price on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating for the company in a research note on Thursday, April 16th. Finally, Wells Fargo & Company reduced 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. Seven research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $21.13.

Ares Capital Stock Performance

Shares of Ares Capital stock opened at $18.92 on Wednesday. The business has a 50-day moving average of $18.52 and a 200 day moving average of $19.61. Ares Capital Corporation has a 12 month low of $17.40 and a 12 month high of $23.42. The stock has a market capitalization of $13.58 billion, a price-to-earnings ratio of 10.17 and a beta of 0.58. The company has a debt-to-equity ratio of 1.12, a current ratio of 1.70 and a quick ratio of 1.70.

Ares Capital (NASDAQ:ARCC - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.48 by ($0.01). Ares Capital had a return on equity of 9.89% and a net margin of 42.56%.The business had revenue of $763.00 million for the quarter, compared to analysts' expectations of $779.10 million. During the same quarter last year, the company earned $0.50 earnings per share. The firm's revenue for the quarter was up 4.2% on a year-over-year basis. As a group, sell-side analysts forecast that Ares Capital Corporation will post 1.93 earnings per share for the current year.

Ares Capital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be issued a dividend of $0.48 per share. The ex-dividend date is Monday, June 15th. This represents a $1.92 dividend on an annualized basis and a yield of 10.1%. Ares Capital's dividend payout ratio is 103.23%.

Key Stories Impacting Ares Capital

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

• Positive Sentiment: Board maintained Q2 dividend of $0.48/share (10%+ yield), supporting income-focused investor demand and signaling confidence in cash flow. Ares Capital Corporation Announces March 31, 2026 Financial Results and Declares Second Quarter 2026 Dividend of 0.48 Per Share
• Positive Sentiment: Management highlighted a $1.8 billion deployment backlog, which supports near-term earnings visibility and potential future interest income. Ares Capital outlines $1.8B backlog as it maintains $0.48 dividend amid spread widening
• Positive Sentiment: Regulator/market concerns about software exposures appear contained: Ares slightly trimmed tech exposure and reports steady valuations, reducing near-term balance-sheet risk vs. peers. Ares Capital Corp's software valuations steady despite concerns
• Neutral Sentiment: Reported net investment income of roughly $398M (55¢/share) for the quarter, a key cash metric for dividend coverage; investors may weigh this against accounting items. Ares Capital Posts a Profit After Accounting Gain
• Negative Sentiment: Q1 core results slightly missed estimates: EPS came in at $0.47 vs. $0.48 consensus and revenue was below expectations ($763M vs. ~$779M), which can pressure near-term multiple expansion. Ares Capital Q1 earnings and transcript
• Negative Sentiment: Unrealized losses and widening credit spreads, along with softer transaction activity, weighed on reported results and raise short-term mark-to-market volatility risk for a credit-focused BDC. Ares Capital misses estimates as unrealized losses weigh

Ares Capital 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.

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