Ares Capital Corporation $ARCC Holdings Trimmed by Oppenheimer & Co. Inc.

Oppenheimer & Co. Inc. reduced its stake in shares of Ares Capital Corporation (NASDAQ:ARCC) by 6.1% during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 443,961 shares of the investment management company’s stock after selling 28,865 shares during the quarter. Oppenheimer & Co. Inc. owned approximately 0.06% of Ares Capital worth $8,480,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Strs Ohio bought a new stake in shares of Ares Capital during the 1st quarter valued at about $189,210,000. Bank of America Corp DE purchased a new position in shares of Ares Capital during the second quarter valued at about $165,569,000. Legal & General Group Plc purchased a new position in shares of Ares Capital during the second quarter valued at about $120,538,000. Advisors Capital Management LLC bought a new position in Ares Capital in the second quarter worth about $63,140,000. Finally, OMERS ADMINISTRATION Corp bought a new position in Ares Capital in the second quarter worth about $53,867,000. 27.38% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several analysts have commented on ARCC shares. Wall Street Zen upgraded shares of Ares Capital from a “sell” rating to a “hold” rating in a report on Saturday, September 19th. Truist Financial cut their price objective on Ares Capital from $22.00 to $21.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. UBS Group upped their target price on Ares Capital from $19.00 to $21.00 and gave the stock a “neutral” rating in a report on Tuesday, September 1st. Keefe, Bruyette & Woods decreased their target price on Ares Capital from $21.00 to $20.00 and set an “outperform” rating for the company in a research report on Thursday, July 30th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Ares Capital in a research report on Friday, September 4th. Eight investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $20.39.

Ares Capital Price Performance

Shares of Ares Capital 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 business has a fifty day simple moving average of $19.27 and a two-hundred day simple moving average of $19.06.

Ares Capital (NASDAQ:ARCC) last released its earnings results on Tuesday, October 27th. The investment management company reported $0.46 earnings per share for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.02). The firm had revenue of $763.00 million for the quarter, compared to analysts’ expectations of $776.34 million. Ares Capital’s revenue for the quarter was down 2.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.50 earnings per share. On average, sell-side analysts anticipate that Ares Capital Corporation will post 1.91 earnings per share for the current year.

Key Stories Impacting Ares Capital

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

Ares Capital Profile

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.