Truist Financial Cuts Ares Capital (NASDAQ:ARCC) Price Target to $21.00

Ares Capital (NASDAQ:ARCC) had its price objective trimmed by Truist Financial from $22.00 to $21.00 in a research report released on Thursday,Benzinga reports. The brokerage currently has a buy rating on the investment management company’s stock.

A number of other brokerages have also commented on ARCC. Wells Fargo & Company restated an “equal weight” rating and issued a $19.00 target price (down from $20.00) on shares of Ares Capital in a research note on Friday, June 12th. Royal Bank Of Canada decreased their price target on shares of Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a research note on Wednesday, April 29th. Oppenheimer lowered their price target on shares of Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Wednesday, April 29th. Wall Street Zen raised shares of Ares Capital from a “sell” rating to a “hold” rating in a report on Saturday, July 25th. Finally, Citizens Jmp dropped their price objective on shares of Ares Capital from $23.00 to $22.00 and set a “market outperform” rating for the company in a research note on Wednesday, April 22nd. Eight research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $20.40.

Ares Capital Trading Down 0.4%

Shares of ARCC opened at $18.76 on Thursday. Ares Capital has a 12-month low of $17.40 and a 12-month high of $22.85. The company has a quick ratio of 1.40, a current ratio of 1.28 and a debt-to-equity ratio of 1.14. The firm has a market capitalization of $13.47 billion, a price-to-earnings ratio of 13.90 and a beta of 0.56. The stock’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 EPS for the quarter, hitting analysts’ consensus estimates of $0.47. Ares Capital had a return on equity of 9.80% and a net margin of 30.91%.The company had revenue of $768.00 million during the quarter, compared to the consensus estimate of $770.19 million. During the same quarter last year, the company earned $0.50 EPS. As a group, research analysts predict that Ares Capital will post 1.9 earnings per share for the current year.

Ares Capital Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be issued 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 presently 142.22%.

Institutional Trading of Ares Capital

Several institutional investors have recently bought and sold shares of the stock. Sound Income Strategies LLC grew its holdings in shares of Ares Capital by 5.6% in the 4th quarter. Sound Income Strategies LLC now owns 2,616,789 shares of the investment management company’s stock worth $54,691,000 after purchasing an additional 138,857 shares during the last quarter. Tectonic Advisors LLC increased its position in shares of Ares Capital by 10.8% during the 4th quarter. Tectonic Advisors LLC now owns 662,533 shares of the investment management company’s stock worth $13,403,000 after purchasing an additional 64,491 shares in the last quarter. Prairiewood Capital LLC lifted its holdings in Ares Capital by 22.9% during the 4th quarter. Prairiewood Capital LLC now owns 303,282 shares of the investment management company’s stock valued at $6,135,000 after purchasing an additional 56,465 shares during the last quarter. Eos Management L.P. bought a new position in Ares Capital during the 4th quarter valued at about $1,416,000. Finally, Cornerstone Advisory LLC lifted its holdings in Ares Capital by 1,022.6% during the 4th quarter. Cornerstone Advisory LLC now owns 145,943 shares of the investment management company’s stock valued at $2,952,000 after purchasing an additional 132,943 shares during the last quarter. Institutional investors and hedge funds own 27.38% of the company’s stock.

Ares Capital News Summary

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

• Positive Sentiment: Second-quarter earnings held up, with adjusted EPS of $0.47 matching estimates and investment income remaining resilient. Management also highlighted ARCC’s scale, improving lending terms and balance-sheet flexibility despite a slower transaction market. Ares Capital’s Q2 Earnings Call Highlights Market Strength
• Positive Sentiment: ARCC declared a quarterly dividend of $0.48 per share, payable September 30 to shareholders of record September 15. The roughly 10.2% annualized yield and 17-year dividend streak support the stock’s appeal to income-focused investors. Ares Capital Just Extended Its Dividend Streak to 17 Years
• Positive Sentiment: Truist maintained a “buy” rating with a $21 price target, while Keefe, Bruyette & Woods retained an “outperform” rating with a $20 target, indicating analysts still see potential upside from current levels. Analyst Price Target Updates
• Neutral Sentiment: Broader private-credit results remained resilient, and strong fundraising across the Ares platform points to continued institutional demand. However, elevated defaults, retail redemptions and liquidity concerns remain important industry risks. Private Credit Roundup
• Negative Sentiment: Five ARCC borrowers were moved to non-accrual status during the second quarter. The largest was an $84.6 million subordinated loan to AmeriVet Veterinary Partners, raising concerns about portfolio credit quality and potential pressure on net asset value. Ares BDC Moves Five Borrowers to Non-Accrual
• Negative Sentiment: Although quarterly revenue was close to expectations, year-over-year expenses increased and unrealized losses weighed on results. Both Truist and KBW lowered their price targets, signaling a more cautious outlook even while keeping positive ratings. ARCC Stock Dips as Q2 Earnings Meet Estimates

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.