Ares Capital (ARCC) – Research Analysts’ Weekly Ratings Changes

Ares Capital (NASDAQ: ARCC) recently received a number of ratings updates from brokerages and research firms:

• 2/7/2025 – Ares Capital was downgraded by analysts at StockNews.com from a “hold” rating to a “sell” rating.
• 2/7/2025 – Ares Capital had its price target raised by analysts at Royal Bank of Canada from $23.00 to $24.00. They now have an “outperform” rating on the stock.
• 2/7/2025 – Ares Capital had its price target raised by analysts at Keefe, Bruyette & Woods from $22.00 to $23.00. They now have an “outperform” rating on the stock.
• 2/6/2025 – Ares Capital had its price target lowered by analysts at Wells Fargo & Company from $24.00 to $23.00. They now have an “overweight” rating on the stock.
• 2/6/2025 – Ares Capital was downgraded by analysts at Raymond James from an “outperform” rating to a “market perform” rating.
• 2/3/2025 – Ares Capital had its price target raised by analysts at JPMorgan Chase & Co. from $23.00 to $24.50. They now have an “overweight” rating on the stock.
• 1/29/2025 – Ares Capital had its price target raised by analysts at Wells Fargo & Company from $23.00 to $24.00. They now have an “overweight” rating on the stock.

Ares Capital Stock Performance

Shares of Ares Capital stock traded down $0.06 during trading hours on Monday, hitting $23.22. 3,431,463 shares of the company’s stock traded hands, compared to its average volume of 4,386,329. The company has a fifty day simple moving average of $22.61 and a 200-day simple moving average of $21.71. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.21 and a quick ratio of 1.21. The stock has a market capitalization of $15.59 billion, a price-to-earnings ratio of 9.48 and a beta of 1.01. Ares Capital Co. has a 12-month low of $19.32 and a 12-month high of $23.84.

Ares Capital (NASDAQ:ARCC) last released its earnings results on Wednesday, February 5th. The investment management company reported $0.55 earnings per share for the quarter, missing analysts’ consensus estimates of $0.58 by ($0.03). Ares Capital had a net margin of 50.90% and a return on equity of 11.54%. Equities research analysts anticipate that Ares Capital Co. will post 2.19 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 31st. Investors of record on Friday, March 14th will be paid a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 8.27%. The ex-dividend date of this dividend is Friday, March 14th. Ares Capital’s payout ratio is currently 78.37%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Horizon Financial Services LLC purchased a new stake in shares of Ares Capital in the 3rd quarter valued at $28,000. Montag & Caldwell LLC purchased a new position in Ares Capital during the 4th quarter valued at $33,000. VSM Wealth Advisory LLC purchased a new stake in Ares Capital in the fourth quarter worth about $35,000. Promus Capital LLC purchased a new stake in Ares Capital in the fourth quarter worth $48,000. Finally, Blue Trust Inc. raised its holdings in Ares Capital by 56.8% in the third quarter. Blue Trust Inc. now owns 2,510 shares of the investment management company’s stock worth $52,000 after purchasing an additional 909 shares in the last quarter. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.