Ares Capital (ARCC) Stock Price, News & Analysis

Company Overview

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. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.

Key Stats

• Today's Range: $23.01 to $23.16
• 50-Day Range: $21.32 to $23.25
• 52-Week Range: $18.26 to $23.84
• Volume: 2.36 million shs
• Average Volume: 3.15 million shs
• Market Capitalization: $15.99 billion
• P/E Ratio: 11.23
• Dividend Yield: 8.34%
• Price Target: $22.21
• Consensus Rating: Moderate Buy

Ares Capital Stock Analysis - MarketRank™

Ares Capital scored higher than 46% of companies evaluated by MarketBeat, and ranked 661st out of 921 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 1.4 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Ares Capital has received a consensus rating of Moderate Buy. The company's average rating score is 2.78, and is based on 5 buy ratings, 3 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Ares Capital has only been the subject of 4 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: -0.91%

Earnings Growth

Earnings for Ares Capital are expected to decrease by -0.91% in the coming year, from $2.19 to $2.17 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Ares Capital is 11.23, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 25.31.

Price to Earnings Ratio vs. Sector

The P/E ratio of Ares Capital is 11.23, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 18.24.

Price to Book Value per Share Ratio

Ares Capital has a P/B Ratio of 1.16. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 5.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

2.16% of the float of Ares Capital has been sold short.

Short Interest Ratio / Days to Cover

Ares Capital has a short interest ratio ("days to cover") of 3.2, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Ares Capital has recently decreased by 17.50%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

Ares Capital is a leading dividend payer. It pays a dividend yield of 8.32%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Ares Capital does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Ares Capital is 93.66%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on EPS estimates, Ares Capital will have a dividend payout ratio of 88.48% in the coming year. This indicates that Ares Capital may not be able to sustain their current dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

2.16% of the float of Ares Capital has been sold short.

Short Interest Ratio / Days to Cover

Ares Capital has a short interest ratio ("days to cover") of 3.2, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Ares Capital has recently decreased by 17.50%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 3.9 / 5
• News Sentiment: 1.06

News Sentiment

Ares Capital has a news sentiment score of 1.06. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.82 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 19 news articles for Ares Capital this week, compared to 14 articles on an average week.

Search Interest

62 people have searched for ARCC on MarketBeat in the last 30 days. This is an increase of 59% compared to the previous 30 days.

MarketBeat Follows

20 people have added Ares Capital to their MarketBeat watchlist in the last 30 days. This is an increase of 122% compared to the previous 30 days.

Company Ownership

• Score: 0.0 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Ares Capital insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 0.48% of the stock of Ares Capital is held by insiders.

Percentage Held by Institutions

Only 27.38% of the stock of Ares Capital is held by institutions.

ARCC Stock Analysis - Frequently Asked Questions

How have ARCC shares performed this year?

Ares Capital's stock was trading at $21.89 on January 1st, 2025. Since then, ARCC stock has increased by 5.2% and is now trading at $23.03.

How were Ares Capital's earnings last quarter?

Ares Capital Corporation (NASDAQ:ARCC) issued its quarterly earnings data on Tuesday, April, 29th. The investment management company reported $0.50 EPS for the quarter, missing analysts' consensus estimates of $0.54 by $0.04. The company's quarterly revenue was up 4.4% on a year-over-year basis.
Read the conference call transcript.

Who are Ares Capital's major shareholders?

Top institutional shareholders of Ares Capital include Kingstone Capital Partners Texas LLC (6.31%), Confluence Investment Management LLC (0.55%), Sound Income Strategies LLC (0.35%) and Border to Coast Pensions Partnership Ltd (0.27%). Insiders that own company stock include Penelope F Roll and Michael Kort Schnabel.
View institutional ownership trends.

How do I buy shares of Ares Capital?

Shares of ARCC stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Ares Capital own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Ares Capital investors own include JPMorgan Nasdaq Equity Premium Income ETF (JEPQ), Symbotic (SYM), Verizon Communications (VZ), Humana (HUM), American Water Works (AWK), Waste Connections (WCN) and The RMR Group (RMR).

Company Calendar

• Last Earnings: 4/29/2025
• Record date for 6/30 Dividend: 6/13/2025
• Ex-Dividend for 6/30 Dividend: 6/13/2025
• Dividend Payable: 6/30/2025
• Today: 7/24/2025
• Next Earnings (Estimated): 7/29/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Finance
• Industry: FIN - SBIC&COMMRL
• Sub-Industry: Asset Management & Custody Banks
• Current Symbol: NASDAQ:ARCC
• CIK: 1287750
• Web: www.arescapitalcorp.com
• Phone: (212) 750-7300
• Fax: 212-750-1777
• Employees: 2,550
• Year Founded: 2004

Price Target and Rating

• Average Price Target for Ares Capital: $22.21
• High Price Target: $23.00
• Low Price Target: $22.00
• Potential Upside/Downside: -3.5%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.78
• Research Coverage: 9 Analysts

Profitability

• EPS (Trailing Twelve Months): $2.05
• Trailing P/E Ratio: 11.23
• Forward P/E Ratio: 10.52
• P/E Growth: N/A
• Net Income: $1.52 billion
• Net Margins: 43.50%
• Pretax Margin: 50.18%
• Return on Equity: 11.05%
• Return on Assets: 5.25%

Debt

• Debt-to-Equity Ratio: 1.02
• Current Ratio: 1.40
• Quick Ratio: 1.40

Sales & Book Value

• Annual Sales: $2.99 billion
• Price / Sales: 5.35
• Cash Flow: $2.20 per share
• Price / Cash Flow: 10.47
• Book Value: $19.89 per share
• Price / Book: 1.16

Miscellaneous

• Outstanding Shares: 694,180,000
• Free Float: 690,850,000
• Market Cap: $15.99 billion
• Optionable: Optionable
• Beta: 0.67