Ares Capital (NASDAQ:ARCC) CEO Michael Kort Schnabel Buys 13,000 Shares

Ares Capital Corporation (NASDAQ:ARCC) CEO Michael Kort Schnabel purchased 13,000 shares of the company’s stock in a transaction that occurred on Friday, October 31st. The shares were purchased at an average cost of $20.39 per share, for a total transaction of $265,070.00. Following the purchase, the chief executive officer directly owned 28,000 shares in the company, valued at $570,920. This trade represents a 86.67% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink.

Ares Capital Stock Up 0.3%

Shares of ARCC traded up $0.06 during midday trading on Monday, hitting $20.41. The company had a trading volume of 3,227,399 shares, compared to its average volume of 4,744,502. The company’s 50 day moving average price is $20.88 and its 200 day moving average price is $21.56. The stock has a market cap of $14.61 billion, a price-to-earnings ratio of 10.21 and a beta of 0.68. Ares Capital Corporation has a 52 week low of $18.26 and a 52 week high of $23.84. The company has a quick ratio of 1.14, a current ratio of 2.20 and a debt-to-equity ratio of 1.09.

Ares Capital (NASDAQ:ARCC) last released its earnings results on Tuesday, October 28th. The investment management company reported $0.50 earnings per share for the quarter, hitting the consensus estimate of $0.50. The company had revenue of $658.00 million during the quarter, compared to the consensus estimate of $766.48 million. Ares Capital had a net margin of 45.16% and a return on equity of 10.08%. The company’s revenue was up .9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.58 EPS. On average, equities research analysts predict that Ares Capital Corporation will post 2.19 EPS for the current year.

Ares Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 30th. Investors of record on Monday, December 15th will be given a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.4%. The ex-dividend date of this dividend is Monday, December 15th. Ares Capital’s dividend payout ratio is currently 96.00%.

Institutional Trading of Ares Capital

A number of institutional investors have recently made changes to their positions in ARCC. City Holding Co. raised its holdings 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 worth $25,000 after purchasing an additional 1,000 shares in the last quarter. Fourth Dimension Wealth LLC bought a new stake in shares of Ares Capital in the 2nd quarter worth approximately $29,000. Elequin Capital LP bought a new stake in shares of Ares Capital in the 1st quarter worth approximately $30,000. NBT Bank N A NY bought a new stake in shares of Ares Capital in the 3rd quarter worth approximately $31,000. Finally, CNB Bank bought a new stake in shares of Ares Capital in the 2nd quarter worth approximately $36,000. 27.38% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

ARCC has been the subject of a number of analyst reports. Royal Bank Of Canada reduced their target price on shares of Ares Capital from $24.00 to $23.00 and set an “outperform” rating for the company in a research note on Wednesday, October 29th. Wall Street Zen raised shares of Ares Capital from a “sell” rating to a “hold” rating in a research note on Sunday, October 19th. JMP Securities set a $23.00 target price on shares of Ares Capital and gave the company a “market outperform” rating in a research note on Thursday, July 31st. Citigroup reissued a “market outperform” rating on shares of Ares Capital in a research note on Thursday. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Ares Capital in a research note on Thursday. Eight analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $22.25.

Ares Capital Company Profile

Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.