Penelope Roll (Insider Trades), CFO of Ares Capital Corporation (ARCC), bought 7,500 shares of the company on Aug. 24. The average price per share was $15.22 for a total transaction of $114,150. Ares Capital Corporation is a financing company specializing in senior secured loans and mezzanine debt. The company’s market cap is $4.73 billion.
The volume of insider buys for the company decreased from 2012 to 2014; however, the number of insider buys increased during the same period of time. There were four transactions totaling 434,350 shares of ARCC in 2012, and 25 transactions totaling 161,662 shares in 2014. 
Roll made six insider buys totaling 21,500 shares of the company since August 2011. Ares Capital Corporation CAO, Vice President, and Treasurer Scott Lem (Insider Trades) also bought 1,275 shares of the company on Aug. 21. The average price per share was $15.52. Lem bought 7,087 shares of the company since August 2014, and the earliest insider buy decreased about 10% since the purchase. For more information about insider transactions with Ares Capital Corporation, click here.
The company reported a GAAP net income of $146.5 million, or $0.47 per share in the second quarter of 2015. In comparison, the GAAP net income for the corresponding quarter of 2014 was $142.8 million, or $0.48 per share. ARCC annual net income increased 1.1% since 2010. ARCC also declared third quarter 2015 dividend of $0.38 per share on Aug. 4. Ares Capital made $820.3 million in new commitments in the second quarter of 2015, and $427 million in new investment commitments in July alone. The company also announced an extension on maturity and reduced pricing on its existing $400 million revolving funding facility with Sumitomo Mitsui Banking Corporation. The reinvestment period was extended one year to September 14, 2017, and stated maturity by one year also to September 14, 2022. Roll commented that this decision shows, “the confidence [the company's] lenders have in ARCC.” Ares Capital announced a partnership with Varagon Capital Partners on June 17 The joint venture is called Senior Direct Lending Program (SDLP) and will follow the success Ares experienced with a previous senior loan joint venture, the Senior Secured Loan Program (SSLP), with GE Capital. Kipp deVeer, CEO of ARCC, stated that SDLP “should continue to help [the company] maintain [its] market-leading position as a provider of senior secured loans to middle-market companies.”
According to GuruFocus.com data, Ares Capital Corporation has a business predictability rank of 1 out of 5 stars. For more information about business predictability rank, click here.
Scott Black (Trades, Portfolio) (Trades, Portfolio) of Delphi Management Inc. bought 12,325 shares of ARCC in the second quarter of 2015. The average price per share was $16.70 during the time of purchase. The total estimated loss of the holding since the first quarter of 2012 is 8%. Murray Stahl (Trades, Portfolio) (Trades, Portfolio) of Horizon Kinetics acquired 18,071 shares of ARCC in the second quarter of 2015. This is Stahl’s first transaction with the company since 2010. For more information about guru transactions with Ares Capital Corporation, click here.
For more stock trades of gurus in real time, visit GuruFocus’ Real Time Picks, a Premium Feature. Not a Premium Member of GuruFocus? Try it free for 7 days here.
