Keefe, Bruyette & Woods Cuts Ares Capital (NASDAQ:ARCC) Price Target to $20.00

Ares Capital (NASDAQ:ARCC) had its price objective reduced by Keefe, Bruyette & Woods from $21.00 to $20.00 in a research report sent to investors on Thursday morning,Benzinga reports. They currently have an outperform rating on the investment management company’s stock.

ARCC has been the subject of a number of other research reports. Oppenheimer reduced their target price on Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a report on Wednesday, April 29th. B. Riley Financial lowered their price target on Ares Capital from $22.00 to $20.00 and set a “buy” rating on the stock in a report on Wednesday, April 29th. Citizens Jmp reduced their price objective 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. Royal Bank Of Canada decreased their target price on Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a research report on Wednesday, April 29th. Finally, Truist Financial decreased their target price on Ares Capital from $23.00 to $22.00 and set a “buy” rating for the company in a research report on Wednesday, April 29th. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $20.40.

Ares Capital Price Performance

Shares of ARCC opened at $18.76 on Thursday. The company has a market capitalization of $13.47 billion, a P/E ratio of 13.90 and a beta of 0.56. 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 50 day moving average of $18.67 and a 200 day moving average of $18.91. Ares Capital has a twelve month low of $17.40 and a twelve month high of $22.85.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings data on Wednesday, July 29th. The investment management company reported $0.47 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.47. The company had revenue of $768.00 million during the quarter, compared to analyst estimates of $770.19 million. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. During the same period in the previous year, the business earned $0.50 EPS. As a group, equities research analysts anticipate that Ares Capital will post 1.9 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

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

Hedge Funds Weigh In On Ares Capital

A number of institutional investors and hedge funds have recently modified their holdings of the company. Roman Butler Fullerton & Co. increased its position in Ares Capital by 1.9% during 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 last quarter. First Citizens Bank & Trust Co. lifted its holdings 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 valued at $213,000 after acquiring an additional 532 shares during the period. Perigon Wealth Management LLC boosted its position in 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 purchasing an additional 547 shares during the last quarter. Diversify Advisory Services LLC boosted its position in 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 purchasing an additional 563 shares during the last quarter. Finally, CWS Financial Advisors LLC grew its stake in shares of Ares Capital by 4.0% during the 1st quarter. CWS Financial Advisors LLC now owns 14,956 shares of the investment management company’s stock valued at $270,000 after purchasing an additional 582 shares during the period. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

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.