Ares Capital Corporation (NASDAQ:ARCC) Given Average Recommendation of “Moderate Buy” by Analysts

Ares Capital Corporation (NASDAQ:ARCC) has been given an average recommendation of “Moderate Buy” by the eleven analysts that are presently covering the stock, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a hold recommendation and eight have assigned a buy recommendation to the company. The average twelve-month price objective among analysts that have issued a report on the stock in the last year is $20.40.

ARCC has been the topic of several analyst reports. JPMorgan Chase & Co. lowered their price target on shares of Ares Capital from $19.00 to $18.50 and set an “overweight” rating on the stock in a report on Thursday, July 2nd. Truist Financial decreased their price objective on shares of Ares Capital from $22.00 to $21.00 and set a “buy” rating on the stock in a research report on Thursday. B. Riley Financial lowered their target price on shares of Ares Capital from $22.00 to $20.00 and set a “buy” rating on the stock in a research note on Wednesday, April 29th. Wells Fargo & Company reaffirmed an “equal weight” rating and issued a $19.00 target price (down from $20.00) on shares of Ares Capital in a report on Friday, June 12th. Finally, Royal Bank Of Canada cut their price target on Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a research note on Wednesday, April 29th.

Ares Capital Stock Up 0.6%

ARCC stock opened at $18.83 on Friday. Ares Capital has a twelve month low of $17.40 and a twelve month high of $22.85. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.13. The stock has a market cap of $13.52 billion, a P/E ratio of 13.95 and a beta of 0.56. The business’s 50-day moving average price is $18.67 and its 200-day moving average price is $18.91.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings data on Wednesday, July 29th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.47. The company had revenue of $768.00 million during the quarter, compared to the consensus estimate of $770.19 million. Ares Capital had a return on equity of 9.74% and a net margin of 30.91%.During the same period in the previous year, the company posted $0.50 EPS. On average, equities research analysts forecast that Ares Capital will post 1.9 EPS for the current year.

Ares Capital Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be paid a $0.48 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 10.2%. Ares Capital’s dividend payout ratio is 142.22%.

Key Stories Impacting Ares Capital

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

• Positive Sentiment: Dividend remains attractive: ARCC declared a third-quarter dividend of $0.48 per share, payable September 30 to shareholders of record September 15. The annualized payout implies a yield of roughly 10.3% and extends the company’s long dividend record. Ares Capital financial results and dividend announcement
• Positive Sentiment: Core earnings held up: Second-quarter net investment income was $0.50 per share, while reported earnings of $0.47 per share matched analyst expectations. Management highlighted ARCC’s scale, strong liquidity, improving lending terms and balance-sheet flexibility. New investment commitments totaled approximately $2.6 billion, with $2.2 billion funded. Ares Capital Q2 earnings call highlights
• Neutral Sentiment: Analysts remain constructive but lowered targets: Truist cut its price target from $22 to $21 while maintaining a “buy” rating. Keefe, Bruyette & Woods reduced its target from $21 to $20 but kept an “outperform” rating, indicating continued expected upside but more cautious valuation assumptions.
• Negative Sentiment: Profitability weakened year over year: GAAP net income fell to $171 million, or $0.24 per share, from $361 million, or $0.52 per share, in the prior-year quarter. Realized and unrealized losses, along with higher expenses, offset improved investment income. Revenue of $768 million was slightly below the $770.2 million consensus estimate. ARCC Q2 earnings and expenses
• Negative Sentiment: Net asset value declined: NAV was $19.35 per share at June 30, down from $19.94 at year-end 2025. Management is also navigating a slower transaction market, creating potential pressure on future investment growth and credit performance.

Institutional Trading of Ares Capital

Several institutional investors have recently made changes to their positions in the business. Roman Butler Fullerton & Co. boosted its holdings in shares of Ares Capital by 1.9% during the 1st quarter. Roman Butler Fullerton & Co. now owns 27,713 shares of the investment management company’s stock valued at $504,000 after purchasing an additional 528 shares during the last quarter. First Citizens Bank & Trust Co. increased its holdings in shares of Ares Capital by 5.3% in the fourth quarter. First Citizens Bank & Trust Co. now owns 10,530 shares of the investment management company’s stock worth $213,000 after purchasing an additional 532 shares during the last quarter. Perigon Wealth Management LLC lifted its position in shares of Ares Capital by 1.6% in the fourth quarter. Perigon Wealth Management LLC now owns 34,700 shares of the investment management company’s stock worth $702,000 after buying an additional 547 shares in the last quarter. Diversify Advisory Services LLC lifted its position in shares of Ares Capital by 2.0% in the fourth quarter. Diversify Advisory Services LLC now owns 28,186 shares of the investment management company’s stock worth $589,000 after buying an additional 563 shares in the last quarter. Finally, CWS Financial Advisors LLC lifted its position in shares of Ares Capital by 4.0% in the first quarter. CWS Financial Advisors LLC now owns 14,956 shares of the investment management company’s stock worth $270,000 after buying an additional 582 shares in the last quarter. Hedge funds and other institutional investors own 27.38% of the company’s stock.

Ares Capital Company 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.