Ares Capital (NASDAQ:ARCC) Given New $20.00 Price Target at B. Riley Financial

Key Points

• B. Riley lowered its price target on Ares Capital to $20.00 from $22.00 but kept a "buy" rating, aligning with a consensus target near $20.75 and implying only modest upside (~5–6%).
• Ares reported a slight Q1 EPS and revenue miss but saw net investment income rise to $398M and maintained its quarterly dividend at $0.48 (≈10.3% yield); management cited a $1.8B backlog to support future income, though some analysts warn of potential dividend pressure.
• Insider buying: CEO Michael Kort Schnabel and CFO Scott C. Lem increased their holdings in February, purchasing 12,500 and 5,186 shares respectively, signaling insider confidence.

Ares Capital (NASDAQ:ARCC - Get Free Report) had its target price decreased by stock analysts at B. Riley Financial from $22.00 to $20.00 in a research report issued on Wednesday,MarketScreener reports. The brokerage currently has a "buy" rating on the investment management company's stock. B. Riley Financial's price objective suggests a potential upside of 5.61% from the company's current price.

ARCC has been the topic of a number of other reports. Wall Street Zen lowered Ares Capital from a "hold" rating to a "sell" rating in a research note on Saturday, February 7th. Wells Fargo & Company dropped their price objective on shares of Ares Capital from $21.00 to $20.00 and set an "overweight" rating for the company in a report on Thursday, February 5th. UBS Group cut their target price on shares of Ares Capital from $21.00 to $19.00 and set a "neutral" rating on the stock in a research report on Friday, March 13th. Keefe, Bruyette & Woods reduced their target price on shares of Ares Capital from $22.00 to $21.00 and set an "outperform" rating on the stock in a report on Thursday, April 16th. Finally, Citizens Jmp decreased their price target on shares of Ares Capital from $23.00 to $22.00 and set a "market outperform" rating for the company in a research report on Wednesday, April 22nd. Nine analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $20.75.

Ares Capital Stock Performance

NASDAQ ARCC opened at $18.94 on Wednesday. The firm's fifty day moving average price is $18.50 and its two-hundred day moving average price is $19.61. The stock has a market cap of $13.60 billion, a PE ratio of 10.17 and a beta of 0.58. Ares Capital has a fifty-two week low of $17.40 and a fifty-two week high of $23.42. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.70 and a current ratio of 1.70.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The investment management company reported $0.47 EPS for the quarter, missing analysts' consensus estimates of $0.48 by ($0.01). The firm 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 firm's revenue was up 4.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.50 earnings per share. On average, equities analysts expect that Ares Capital will post 1.93 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Michael Kort Schnabel purchased 12,500 shares of the stock in a transaction on Thursday, February 5th. The stock was purchased at an average price of $19.13 per share, for a total transaction of $239,125.00. Following the acquisition, the chief executive officer owned 40,500 shares in the company, valued at $774,765. This trade represents a 44.64% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Scott C. Lem purchased 5,186 shares of the company's stock in a transaction dated Friday, February 6th. The stock was purchased at an average price of $19.29 per share, for a total transaction of $100,037.94. Following the transaction, the chief financial officer directly owned 39,463 shares in the company, valued at approximately $761,241.27. This trade represents a 15.13% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.49% of the stock is owned by insiders.

Hedge Funds Weigh In On Ares Capital

A number of hedge funds have recently bought and sold shares of ARCC. Canal Capital Management LLC grew its holdings in Ares Capital by 1.6% during the 4th quarter. Canal Capital Management LLC now owns 32,955 shares of the investment management company's stock worth $667,000 after acquiring an additional 520 shares during the period. BKM Wealth Management LLC boosted its position in shares of Ares Capital by 1.3% during the 3rd quarter. BKM Wealth Management LLC now owns 42,394 shares of the investment management company's stock valued at $865,000 after purchasing an additional 525 shares in the last quarter. First Citizens Bank & Trust Co. grew its stake in Ares Capital by 5.3% during the fourth quarter. First Citizens Bank & Trust Co. now owns 10,530 shares of the investment management company's stock worth $213,000 after purchasing an additional 532 shares during the period. Perigon Wealth Management LLC grew its stake in Ares Capital by 1.6% during 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 period. Finally, Balboa Wealth Partners increased its holdings in Ares Capital by 1.3% in the third 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 in the last quarter. Institutional investors own 27.38% of the company's stock.

Ares Capital News Summary

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

• Positive Sentiment: Management kept the quarterly dividend at $0.48 (annualized yield ~10.3%), supporting income investors and signaling confidence in cash generation. Dividend Announcement
• Positive Sentiment: Company reported robust portfolio activity and a $1.8B backlog, which management says should support future investment income and offset near-term mark volatility. Ares Capital outlines $1.8B backlog
• Positive Sentiment: Net investment income rose to $398M (≈ $0.55/share) and the company posted a GAAP profit after a noncash accounting gain — a near-term earnings booster cited by press coverage. Ares Capital Posts a Profit After Accounting Gain
• Neutral Sentiment: Analysts and coverage note software-sector valuations and exposures appear steady and manageable; management reduced software exposure slightly but doesn’t expect major strain. Software valuations steady
• Neutral Sentiment: Quarterly results showed a very small EPS/revenue miss and modest NAV decline on marks; many analysts emphasize the difference between core earnings and headline GAAP marks. Q1 2026 Earnings Call Highlights
• Negative Sentiment: Some coverage warns dividend pressure could emerge if core earnings don’t keep pace; Benzinga opined on near-term pressure despite structural differences. Dividend Looks Pressured
• Negative Sentiment: Two firms trimmed price targets (Truist and RBC lowered targets to $22/$21) — ratings remain constructive but lower targets reduce upside expectations. RBC Lowers Price Target
• Neutral Sentiment: Market reaction: some outlets note the stock rose despite the small miss, reflecting investor focus on portfolio momentum and dividend stability. Zacks: Stock Rises Despite Q1 Lag

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.

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