Cornerstone Advisory LLC Buys 132,943 Shares of Ares Capital Corporation $ARCC

Key Points

• Cornerstone Advisory LLC increased its stake in Ares Capital by 1,022.6% in Q4, buying an additional 132,943 shares to hold 145,943 shares valued at about $2.95 million.
• Ares Capital pays a quarterly dividend of $0.48 (annualized $1.92) for a current yield of 10.3%, but the dividend payout ratio is elevated at 103.23%, which may raise sustainability concerns.
• There is notable institutional and insider activity: Goldman Sachs added 358,829 shares to hold ~2.835 million shares (~$62.8M), while the CEO and CFO also bought shares, and institutions collectively own about 27.38% of the stock.

Cornerstone Advisory LLC grew its stake in Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 1,022.6% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 145,943 shares of the investment management company's stock after purchasing an additional 132,943 shares during the quarter. Cornerstone Advisory LLC's holdings in Ares Capital were worth $2,952,000 at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in ARCC. AQR Capital Management LLC raised its holdings in Ares Capital by 6.5% in the 1st quarter. AQR Capital Management LLC now owns 16,502 shares of the investment management company's stock worth $365,000 after purchasing an additional 1,000 shares in the last quarter. Dynamic Technology Lab Private Ltd bought a new position in Ares Capital in the 1st quarter worth $273,000. Goldman Sachs Group Inc. raised its holdings in Ares Capital by 14.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,835,007 shares of the investment management company's stock worth $62,824,000 after purchasing an additional 358,829 shares in the last quarter. Empowered Funds LLC raised its holdings in Ares Capital by 139.9% in the 1st quarter. Empowered Funds LLC now owns 27,655 shares of the investment management company's stock worth $613,000 after purchasing an additional 16,128 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC bought a new position in shares of Ares Capital in the 1st quarter worth about $14,766,000. 27.38% of the stock is currently owned by institutional investors.

Key Ares Capital News

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

• Positive Sentiment: Bull case highlighted: independent income-focused blogs argue ARCC’s high yield and single-digit forward P/E make it an attractive buy for dividend investors, supporting longer‑term upside if portfolio performance and dividends remain stable. Is Ares Capital Corporation (ARCC) A Good Stock To Buy Now?
• Positive Sentiment: Featured on dividend lists: ARCC appears in articles recommending high‑yield dividend names to buy or add to, reinforcing retail demand from yield‑seeking investors. Inclusion in these lists can support longer‑term buying interest. Want $4,087 in Passive Income? Invest $10,000 Into These 3 High-Yielding Stocks
• Neutral Sentiment: Q1 outlook / estimates: recent pieces summarize Wall Street’s expected metrics for ARCC’s March quarter — useful context for earnings-season positioning but not new company-specific catalysts. Investors will watch realized portfolio income, NII/fee trends and credit performance when results arrive. Unveiling Ares Capital (ARCC) Q1 Outlook: Wall Street Estimates for Key Metrics
• Neutral Sentiment: Analyst update: Citizens JMP trimmed its price target from $23 to $22 but kept a "market outperform" view — a modest downgrade in absolute target that still implies upside vs. current levels, so impact is mixed. Citizens JMP lowers ARCC price target to $22 (Benzinga)
• Negative Sentiment: Shares under pressure in intraday coverage: several market headlines noted ARCC "fell more steeply than the broader market," highlighting today’s pullback and likely triggering some tactical selling or stop‑loss activity. That coverage, combined with general rate/credit sentiment, is the proximate driver of the decline. Ares Capital (ARCC) Falls More Steeply Than Broader Market: What Investors Need to Know

Ares Capital Stock Performance

Shares of ARCC stock opened at $18.62 on Friday. Ares Capital Corporation has a one year low of $17.40 and a one year high of $23.42. The company's 50-day moving average is $18.56 and its 200 day moving average is $19.63. The company has a market capitalization of $13.37 billion, a price-to-earnings ratio of 10.01 and a beta of 0.58. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.70 and a current ratio of 1.70.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its quarterly earnings data on Wednesday, February 4th. The investment management company reported $0.50 EPS for the quarter, meeting the consensus estimate of $0.50. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The company had revenue of $793.00 million for the quarter, compared to the consensus estimate of $795.20 million. During the same period in the prior year, the firm posted $0.55 EPS. Ares Capital's revenue for the quarter was up 4.5% on a year-over-year basis. Sell-side analysts expect that Ares Capital Corporation will post 1.93 EPS for the current fiscal year.

Ares Capital Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the stock. Weiss Ratings reiterated a "hold (c+)" rating on shares of Ares Capital in a research note on Monday, December 29th. B. Riley Financial reiterated a "buy" rating on shares of Ares Capital in a research note on Monday, February 9th. Royal Bank Of Canada decreased their price target 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, February 9th. UBS Group decreased their price target on shares of Ares Capital from $21.00 to $19.00 and set a "neutral" rating for the company in a research note on Friday, March 13th. Finally, Keefe, Bruyette & Woods decreased their price target 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. Seven investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $21.13.

Insider Activity

In other news, CFO Scott C. Lem acquired 5,186 shares of the business's stock in a transaction that occurred on Friday, February 6th. The shares were bought at an average cost of $19.29 per share, with a total value 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 trade represents a 15.13% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Michael Kort Schnabel acquired 12,500 shares of the business's stock in a transaction that occurred on Thursday, February 5th. The shares were purchased at an average cost of $19.13 per share, for a total transaction of $239,125.00. Following the completion of the transaction, the chief executive officer directly owned 40,500 shares in the company, valued at $774,765. The trade was a 44.64% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 0.49% of the company's stock.

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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