Ares Capital Corporation (NASDAQ:ARCC) Receives Consensus Rating of “Moderate Buy” from Analysts

Shares of Ares Capital Corporation (NASDAQ:ARCC) have received a consensus rating of “Moderate Buy” from the eleven ratings firms that are presently covering the stock, Marketbeat reports. Three equities research analysts have rated the stock with a hold rating and eight have issued a buy rating on the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $20.60.

Several research analysts have recently issued reports on ARCC shares. Truist Financial lowered their price objective on Ares Capital from $22.00 to $21.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Wells Fargo & Company reissued an “equal weight” rating and issued a $19.00 price objective (down from $20.00) on shares of Ares Capital in a research report on Friday, June 12th. Wall Street Zen downgraded shares of Ares Capital from a “hold” rating to a “sell” rating in a research report on Sunday, August 2nd. Weiss Ratings reiterated a “hold (c)” rating on shares of Ares Capital in a report on Friday, September 4th. Finally, 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.

Hedge Funds Weigh In On Ares Capital

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Roman Butler Fullerton & Co. raised its stake in shares of Ares Capital by 1.9% in the first quarter. Roman Butler Fullerton & Co. now owns 27,713 shares of the investment management company’s stock valued at $504,000 after acquiring an additional 528 shares during the period. CWS Financial Advisors LLC increased its position in shares of Ares Capital by 4.0% during the first quarter. CWS Financial Advisors LLC now owns 14,956 shares of the investment management company’s stock worth $270,000 after acquiring an additional 582 shares during the period. Astoria Portfolio Advisors LLC. increased its stake in shares of Ares Capital by 5.9% during the fourth quarter. Astoria Portfolio Advisors LLC. now owns 10,616 shares of the investment management company’s stock valued at $202,000 after buying an additional 592 shares during the period. Founders Financial Alliance LLC increased its position in Ares Capital by 1.8% during the 4th quarter. Founders Financial Alliance LLC now owns 34,362 shares of the investment management company’s stock valued at $695,000 after purchasing an additional 620 shares during the period. Finally, VPR Management LLC lifted its position in shares of Ares Capital by 1.0% in the 2nd quarter. VPR Management LLC now owns 63,254 shares of the investment management company’s stock worth $1,172,000 after purchasing an additional 636 shares during the period. Hedge funds and other institutional investors own 27.38% of the company’s stock.

Ares Capital Stock Performance

Ares Capital stock opened at $19.37 on Friday. The business’s 50-day moving average price is $19.48 and its two-hundred day moving average price is $18.88. The stock has a market cap of $13.91 billion, a PE ratio of 14.35 and a beta of 0.57. Ares Capital has a 12-month low of $17.40 and a 12-month high of $21.64. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.14.

Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings data on Wednesday, July 29th. The investment management company reported $0.47 EPS for the quarter, meeting the consensus estimate of $0.47. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. The business had revenue of $768.00 million during the quarter, compared to the consensus estimate of $770.19 million. During the same quarter in the prior year, the firm earned $0.50 EPS. As a group, analysts expect that Ares Capital will post 1.91 earnings per share for the current fiscal year.

Ares Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be issued a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a yield of 9.9%. The ex-dividend date of this dividend is Tuesday, September 15th. Ares Capital’s payout ratio is currently 142.22%.

Key Ares Capital News

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

• Positive Sentiment: Attractive dividend income remains the primary appeal. Ares Capital declared a $0.48-per-share cash dividend, payable September 30, 2026. Although the September 15 ex-dividend date has passed, the payout reinforces ARCC’s appeal to income-oriented investors and implies a high yield relative to many alternatives. Ares Capital Corp’s Dividend Analysis
• Positive Sentiment: Some analysts view ARCC as an attractive buy at book value. A Seeking Alpha contributor highlighted the company’s roughly 9.7% yield and argued that the shares offer value near book value, supporting the case for long-term income investors. Ares Capital: I’m Buying This 9.7% Yield At Book Value
• Neutral Sentiment: Brokerage recommendations are favorable but may be an unreliable catalyst. The average brokerage recommendation suggests adding ARCC to a portfolio, but the article cautions that sell-side ratings can be overly optimistic and should not be treated as a standalone buy signal. Brokers Suggest Investing in Ares Capital
• Neutral Sentiment: Ares Capital completed a $750 million unsecured notes offering. The financing provides capital for lending and investment activity, but it also increases the company’s funding obligations. The effect on the shares will depend on the notes’ cost and how effectively ARCC deploys the proceeds. Ares Capital Issues $750 Million Unsecured Notes Offering
• Negative Sentiment: Recent weakness reflects concerns about slowing portfolio-growth momentum. A Seeking Alpha analysis recommended holding rather than buying, arguing that growth in ARCC’s investment portfolio is losing momentum. Separately, ARCC recently declined more than the broader market, indicating near-term investor caution. Ares Capital: Hold As Portfolio Growth Momentum Fades

About Ares Capital

Ares Capital Corporation (NASDAQ: ARCC) is a business development company that provides financing to middle-market companies. The company invests primarily in privately originated loans and other debt investments, helping businesses fund acquisitions, recapitalizations, refinancings, growth initiatives and other corporate purposes.

Its investment portfolio generally includes senior secured loans, subordinated debt and mezzanine financing, along with selected equity investments. Ares Capital focuses on companies with established operations across a variety of industries and typically works with private equity sponsors, management teams and other financial partners.

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