Wells Fargo & Company Issues Pessimistic Forecast for Ares Capital (NASDAQ:ARCC) Stock Price

Ares Capital (NASDAQ:ARCC) had its price objective decreased by equities research analysts at Wells Fargo & Company from $21.00 to $20.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage presently has an “overweight” rating on the investment management company’s stock. Wells Fargo & Company‘s price objective suggests a potential upside of 3.57% from the stock’s previous close.

A number of other analysts have also recently commented on the company. UBS Group lowered their price target on Ares Capital from $22.50 to $21.00 and set a “neutral” rating for the company in a research report on Tuesday, October 14th. Wall Street Zen raised Ares Capital from a “sell” rating to a “hold” rating in a report on Sunday, October 19th. Capital One Financial set a $22.50 price target on shares of Ares Capital in a report on Friday, October 10th. Weiss Ratings reissued a “hold (c+)” rating on shares of Ares Capital in a research report on Monday, December 29th. Finally, Keefe, Bruyette & Woods dropped their price objective on shares of Ares Capital from $23.00 to $22.00 and set an “outperform” rating on the stock in a report on Wednesday, October 29th. Seven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, Ares Capital has an average rating of “Moderate Buy” and an average target price of $22.13.

Ares Capital Stock Up 2.8%

ARCC stock opened at $19.31 on Thursday. The stock has a market capitalization of $13.86 billion, a PE ratio of 10.38 and a beta of 0.59. Ares Capital has a 52 week low of $18.26 and a 52 week high of $23.63. The company has a quick ratio of 2.20, a current ratio of 1.70 and a debt-to-equity ratio of 1.12. The firm has a 50 day moving average of $20.38 and a 200 day moving average of $20.89.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings results on Wednesday, February 4th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.50. The business had revenue of $793.00 million during the quarter, compared to analysts’ expectations of $795.20 million. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The business’s quarterly revenue was up 4.5% on a year-over-year basis. During the same quarter last year, the company posted $0.55 earnings per share. Sell-side analysts forecast that Ares Capital will post 2.19 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. UBS Group AG grew its position in shares of Ares Capital by 41.8% during the 4th quarter. UBS Group AG now owns 11,201,905 shares of the investment management company’s stock valued at $226,615,000 after acquiring an additional 3,301,890 shares during the period. Bank of America Corp DE boosted its position in Ares Capital by 8.9% during the second quarter. Bank of America Corp DE now owns 8,678,129 shares of the investment management company’s stock worth $190,572,000 after purchasing an additional 705,882 shares in the last quarter. JPMorgan Chase & Co. grew its holdings in Ares Capital by 18.6% in the second quarter. JPMorgan Chase & Co. now owns 6,404,876 shares of the investment management company’s stock valued at $140,651,000 after purchasing an additional 1,006,460 shares during the period. Legal & General Group Plc grew its holdings in Ares Capital by 5.4% in the second quarter. Legal & General Group Plc now owns 4,955,567 shares of the investment management company’s stock valued at $108,799,000 after purchasing an additional 252,947 shares during the period. Finally, Ameriprise Financial Inc. increased its position in shares of Ares Capital by 6.3% in the second quarter. Ameriprise Financial Inc. now owns 3,794,378 shares of the investment management company’s stock valued at $83,353,000 after buying an additional 225,984 shares in the last quarter. Hedge funds and other institutional investors own 27.38% of the company’s stock.

Ares Capital News Roundup

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

• Positive Sentiment: Q4 results showed resilience: total investment income rose and core earnings roughly met/edged past estimates (EPS reported around $0.50–$0.517), supporting the dividend profile and helping shares. ARCC’s Q4 Earnings Meet, Stock Up on Higher Total Investment Income Ares Capital (ARCC) Q4 2025 Earnings Transcript
• Positive Sentiment: Multiple analysts and outlets are emphasizing ARCC’s high, reliable dividend (roughly 10% yield), which attracts income-focused investors and supports the stock in volatile markets. Coverage includes a Seeking Alpha upgrade/positive take and a Motley Fool piece highlighting momentum. Ares Capital: When Things Get Shaky, You Have To Stick With The King (Rating Upgrade) This 10%-Yielding Dividend Stock is Coming Off a Record Year With Lots Of Momentum in 2026
• Neutral Sentiment: Analyst commentary remains mixed-to-supportive: Wells Fargo kept an overweight stance but trimmed its price target slightly (see negative item). Overall coverage is balanced around yield stability versus margin/expense pressure. Benzinga Report
• Neutral Sentiment: The earnings call was characterized as “balancing strength and strain” — management flagged areas of resilience (investment income, portfolio performance) alongside cost/expense pressures and portfolio dynamics; read the call summary for detail. Ares Capital (ARCC) Earnings Call Balances Strength and Strain
• Neutral Sentiment: Reported short interest shows no meaningful build (data shows effectively zero change), so short-covering is not a material driver of today’s move.
• Negative Sentiment: Wells Fargo cut its price target from $21 to $20 despite keeping an overweight rating — a modest reduction in upside that could cap near-term analyst-driven gains. Wells Fargo Lowers Price Target

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.