Ares Capital (NASDAQ:ARCC – Free Report) had its price objective cut by B. Riley Financial from $22.00 to $20.00 in a research note published on Wednesday,MarketScreener reports. They currently have a buy rating on the investment management company’s stock.
A number of other research firms also recently commented on ARCC. Royal Bank Of Canada reduced their price objective on shares of Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a research note on Wednesday. UBS Group reduced their price objective on shares of Ares Capital from $21.00 to $19.00 and set a “neutral” rating for the company in a research note on Friday, March 13th. JPMorgan Chase & Co. reduced their price objective on shares of Ares Capital from $22.00 to $19.00 and set an “overweight” rating for the company in a research note on Friday, March 13th. Citizens Jmp reduced their price target on Ares Capital from $23.00 to $22.00 and set a “market outperform” rating for the company in a report on Wednesday, April 22nd. Finally, Truist Financial reduced their price target on Ares Capital from $23.00 to $22.00 and set a “buy” rating for the company in a report on Wednesday. Nine equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $20.75.
Check Out Our Latest Stock Analysis on Ares Capital
Ares Capital Stock Up 1.8%
Ares Capital (NASDAQ:ARCC – Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The investment management company reported $0.47 EPS for the quarter, missing the consensus estimate of $0.48 by ($0.01). The company had revenue of $763.00 million during the quarter, compared to the consensus estimate of $779.10 million. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The company’s revenue was up 4.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.50 earnings per share. As a group, equities analysts expect that Ares Capital will post 1.93 earnings per share for the current year.
Ares Capital Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be paid a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 10.1%. The ex-dividend date is Monday, June 15th. Ares Capital’s payout ratio is presently 117.79%.
Insider Transactions at Ares Capital
In related news, CFO Scott C. Lem bought 5,186 shares of the company’s stock in a transaction on Friday, February 6th. The shares were purchased at an average cost of $19.29 per share, for a total transaction of $100,037.94. Following the completion of the purchase, the chief financial officer directly owned 39,463 shares in the company, valued at $761,241.27. The trade was a 15.13% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Michael Kort Schnabel bought 12,500 shares of the company’s stock in a transaction on Thursday, February 5th. The stock was bought at an average price of $19.13 per share, for a total transaction of $239,125.00. Following the completion of the purchase, the chief executive officer owned 40,500 shares of the company’s stock, valued at approximately $774,765. The trade was a 44.64% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.49% of the stock is owned by insiders.
Institutional Trading of Ares Capital
Hedge funds and other institutional investors have recently modified their holdings of the business. Canal Capital Management LLC lifted its stake in Ares Capital by 1.6% in the 4th quarter. Canal Capital Management LLC now owns 32,955 shares of the investment management company’s stock worth $667,000 after purchasing an additional 520 shares in the last quarter. BKM Wealth Management LLC grew its holdings in shares of Ares Capital by 1.3% in the third quarter. BKM Wealth Management LLC now owns 42,394 shares of the investment management company’s stock worth $865,000 after purchasing an additional 525 shares during the last quarter. First Citizens Bank & Trust Co. lifted its stake in 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 acquiring an additional 532 shares during the period. Perigon Wealth Management LLC increased its holdings in Ares Capital by 1.6% in the 4th 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 during the period. Finally, Balboa Wealth Partners grew its stake in shares of Ares Capital by 1.3% during the 3rd quarter. Balboa Wealth Partners now owns 44,755 shares of the investment management company’s stock worth $913,000 after purchasing an additional 559 shares during the period. Institutional investors own 27.38% of the company’s stock.
More Ares Capital News
Here are the key news stories impacting Ares Capital this week:
- Positive Sentiment: Company kept its quarterly dividend at $0.48 and reiterated the payout despite volatile markets, supporting income-focused investors. Ares Capital Navigates Volatility With Dividend Intact
- Positive Sentiment: Net investment income and portfolio activity were highlighted as strengths on the call (NII reported ~ $398M for the quarter), which analysts cited as offsetting pockets of mark-to-market weakness. Ares Capital Posts a Profit After Accounting Gain
- Positive Sentiment: Management cited a $1.8B backlog and said the year is off to a strong start, signaling ongoing deal flow and reinvestment potential. Ares Capital outlines $1.8B backlog as it maintains $0.48 dividend
- Positive Sentiment: Coverage of sector risks (software exposure, liquidity concerns) noted Ares’ software valuations remain steady and management does not expect material strain, reducing a key downside risk. Ares Capital Corp’s software valuations steady despite concerns
- Neutral Sentiment: Full earnings call transcripts and summaries are available for detail; these provide nuance behind GAAP marks vs. core economics and are useful for investors parsing dividend coverage and NAV changes. Q1 2026 Earnings Call Transcript
- Negative Sentiment: Q1 EPS marginally missed estimates (reported ~$0.47 vs. ~$0.48 consensus) and revenue was slightly below forecasts—drivers of some short-term investor caution. Compared to Estimates, Ares Capital Q1 Earnings
- Negative Sentiment: Several firms trimmed price targets (Oppenheimer to $21, B. Riley to $20, Truist to $22, RBC to $21) while largely keeping buy/outperform ratings—reducing near-term upside expectations for some analysts. Oppenheimer cuts price target B. Riley adjusts price target RBC lowers price target Truist price target note
- Negative Sentiment: Opinion pieces flagged potential pressure on the dividend if core earnings do not sustainably cover distributions, a narrative that can amplify volatility for a high-yield name. This 10%-Yielding Dividend Stock’s Earnings Are Falling
About Ares Capital
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.
Further Reading
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