Stableford Capital II LLC Acquires 62,768 Shares of Ares Capital Corporation $ARCC

Key Points

• Stableford Capital II increased its stake in Ares Capital by 75.7%, buying 62,768 shares in Q4 to hold 145,641 shares worth about $2.95 million, making ARCC its 25th-largest holding (1.1% of assets).
• CFO Scott C. Lem bought 5,186 shares at $19.29 and CEO Michael Kort Schnabel bought 12,500 shares at $19.13 in early February, boosting their insider ownership by roughly 15.1% and 44.6%, respectively.
• Ares Capital declared a $0.48 quarterly dividend (annualized yield ~10.7%) with a payout ratio above 100%, and analysts hold a consensus "Moderate Buy" with an average target of $21.38 amid recent price-target cuts to the $19–$22 range.

Stableford Capital II LLC increased its holdings in shares of Ares Capital Corporation (NASDAQ:ARCC - Free Report) by 75.7% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 145,641 shares of the investment management company's stock after buying an additional 62,768 shares during the quarter. Ares Capital accounts for about 1.1% of Stableford Capital II LLC's holdings, making the stock its 25th biggest holding. Stableford Capital II LLC's holdings in Ares Capital were worth $2,946,000 as of its most recent SEC filing.

Other large investors have also bought and sold shares of the company. City Holding Co. boosted its stake in shares of Ares Capital by 444.4% in the 3rd quarter. City Holding Co. now owns 1,225 shares of the investment management company's stock valued at $25,000 after purchasing an additional 1,000 shares in the last quarter. SWAN Capital LLC bought a new position in Ares Capital in the 3rd quarter valued at approximately $27,000. NBT Bank N A NY bought a new position in Ares Capital in the 3rd 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. boosted 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 buying an additional 1,178 shares in the last quarter. 27.38% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Ares Capital

In other news, CFO Scott C. Lem bought 5,186 shares of the stock in a transaction that occurred on Friday, February 6th. The stock was acquired at an average price of $19.29 per share, with a total value of $100,037.94. Following the completion of the purchase, the chief financial officer directly owned 39,463 shares of the company's stock, valued at approximately $761,241.27. This represents a 15.13% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Michael Kort Schnabel bought 12,500 shares of the company's stock in a transaction that occurred on Thursday, February 5th. The stock was purchased at an average price of $19.13 per share, for a total transaction of $239,125.00. Following the acquisition, the chief executive officer owned 40,500 shares of the company's stock, valued at $774,765. This trade represents a 44.64% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 0.49% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on ARCC. UBS Group lowered their price target on shares of Ares Capital from $21.00 to $19.00 and set a "neutral" rating for the company in a report on Friday, March 13th. Wells Fargo & Company cut their price objective on Ares Capital from $21.00 to $20.00 and set an "overweight" rating on the stock in a report on Thursday, February 5th. Royal Bank Of Canada reduced their price objective on Ares Capital from $23.00 to $22.00 and set an "outperform" rating on the stock in a research report on Monday, February 9th. JPMorgan Chase & Co. lowered their target price on Ares Capital from $22.00 to $19.00 and set an "overweight" rating for the company in a report on Friday, March 13th. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of Ares Capital in a research note on Monday, December 29th. Seven research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $21.38.

Ares Capital Stock Performance

Shares of Ares Capital stock opened at $17.92 on Friday. The stock has a market cap of $12.87 billion, a price-to-earnings ratio of 9.63 and a beta of 0.59. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 1.12. Ares Capital Corporation has a twelve month low of $17.59 and a twelve month high of $23.42. The company's fifty day moving average is $19.24 and its 200 day moving average is $20.02.

Ares Capital (NASDAQ:ARCC - Get Free Report) last released its quarterly earnings results on Wednesday, February 4th. The investment management company reported $0.50 EPS for the quarter, meeting analysts' consensus estimates of $0.50. Ares Capital had a return on equity of 9.89% and a net margin of 42.56%.The firm had revenue of $793.00 million for the quarter, compared to analyst estimates of $795.20 million. During the same quarter in the previous year, the company posted $0.55 EPS. The business's revenue was up 4.5% on a year-over-year basis. Sell-side analysts forecast that Ares Capital Corporation will post 2.19 EPS for the current year.

Ares Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th will be paid a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 10.7%. The ex-dividend date of this dividend is Friday, March 13th. Ares Capital's dividend payout ratio is currently 103.23%.

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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