Ares Capital Corporation $ARCC Stock: Oppenheimer & Co. Inc. Cuts Position

Oppenheimer & Co. Inc. lessened its stake in shares of Ares Capital Corporation (NASDAQ:ARCC) by 6.1% in the third quarter, Holdings Channel reports. The institutional investor owned 443,961 shares of the investment management company’s stock after selling 28,865 shares during the period. Oppenheimer & Co. Inc.’s holdings in Ares Capital were worth $8,480,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Park Avenue Securities LLC grew its stake in shares of Ares Capital by 113.0% in the third quarter. Park Avenue Securities LLC now owns 21,403 shares of the investment management company’s stock worth $409,000 after acquiring an additional 11,353 shares during the last quarter. WESPAC Advisors LLC increased its holdings in shares of Ares Capital by 2.2% during the third quarter. WESPAC Advisors LLC now owns 33,804 shares of the investment management company’s stock valued at $646,000 after acquiring an additional 714 shares in the last quarter. Segment Wealth Management LLC purchased a new position in shares of Ares Capital in the 3rd quarter worth about $354,000. Kingswood Wealth Advisors LLC raised its position in shares of Ares Capital by 313.6% in the 3rd quarter. Kingswood Wealth Advisors LLC now owns 134,710 shares of the investment management company’s stock worth $2,573,000 after purchasing an additional 102,143 shares during the last quarter. Finally, Richardson Capital Management LLC purchased a new position in shares of Ares Capital in the 3rd quarter worth about $180,000. Institutional investors own 27.38% of the company’s stock.

Ares Capital Stock Down 0.5%

ARCC stock opened at $18.51 on Wednesday. Ares Capital Corporation has a 12-month low of $17.40 and a 12-month high of $21.14. The stock’s 50 day simple moving average is $19.27 and its 200 day simple moving average is $19.06.

Ares Capital (NASDAQ:ARCC) last issued its earnings results on Tuesday, October 27th. The investment management company reported $0.46 EPS for the quarter, missing the consensus estimate of $0.48 by ($0.02). The business had revenue of $763.00 million during the quarter, compared to analyst estimates of $776.34 million. The company’s revenue was down 2.4% on a year-over-year basis. During the same quarter last year, the company posted $0.50 EPS. As a group, equities research analysts anticipate that Ares Capital Corporation will post 1.91 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on ARCC. Weiss Ratings reiterated a “hold (c)” rating on shares of Ares Capital in a research note on Friday, September 4th. Keefe, Bruyette & Woods cut their price objective on shares of Ares Capital from $21.00 to $20.00 and set an “outperform” rating on the stock in a research report on Thursday, July 30th. UBS Group raised their price objective on shares of Ares Capital from $19.00 to $21.00 and gave the company a “neutral” rating in a research note on Tuesday, September 1st. JPMorgan Chase & Co. decreased their target price on shares of Ares Capital from $19.00 to $18.50 and set an “overweight” rating for the company in a report on Thursday, July 2nd. Finally, Wall Street Zen upgraded shares of Ares Capital from a “sell” rating to a “hold” rating in a research note on Saturday, September 19th. Eight equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $20.39.

More Ares Capital News

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

• Positive Sentiment: $2.6 billion MFIC acquisition could enhance scale: Ares Capital agreed to acquire Apollo-affiliated MidCap Financial Investment Corporation (NASDAQ: MFIC) in a stock-and-cash transaction. The deal is expected to strengthen ARCC’s position as the largest publicly traded business development company, diversify its portfolio and potentially increase core earnings per share. Closing is targeted for the first half of 2027, subject to shareholder and regulatory approval. Ares Capital Corporation Agrees to Acquire MidCap Financial Investment Corporation
• Positive Sentiment: Dividend remains steady: ARCC declared a fourth-quarter dividend of $0.48 per share, payable December 29 to shareholders of record December 15. The unchanged payout supports the stock’s income appeal, although investors may focus on its coverage after the earnings release. Ares Capital dividend announcement
• Neutral Sentiment: Potential transaction-related concerns: A law firm announced an investigation into whether MFIC’s board satisfied its fiduciary duties in approving the sale. The announcement does not allege wrongdoing by ARCC, but additional scrutiny could create execution or timing risks for the acquisition. MFIC shareholder investigation
• Negative Sentiment: Third-quarter results missed expectations: Core earnings per share were $0.46 versus the $0.48 consensus estimate, while revenue of $763 million fell short of the $776.34 million forecast and declined 2.4% year over year. Earnings also decreased from $0.50 per share a year earlier. Reports attributed the pressure partly to a slower transaction environment, raising questions about near-term earnings and dividend coverage. Ares Capital Q3 earnings miss

About Ares Capital

Ares Capital Corporation (NASDAQ: ARCC) is a business development company that provides financing to middle-market companies. The company primarily invests in first-lien senior secured loans, second-lien loans, subordinated debt, and, to a lesser extent, equity securities. Its investments are generally designed to support acquisitions, recapitalizations, refinancings, growth initiatives, and other corporate activities.

Founded in 2004, Ares Capital is externally managed by Ares Capital Management LLC, an affiliate of Ares Management Corporation.