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Ares Capital (ARCC) Stock Price, News & Analysis

$21.35
+0.15 (+0.71%)
(As of 05/24/2024 08:49 PM ET)
Today's Range
$21.21
$21.35
50-Day Range
$19.94
$21.46
52-Week Range
$18.00
$21.53
Volume
1.93 million shs
Average Volume
3.54 million shs
Market Capitalization
$13.12 billion
P/E Ratio
7.31
Dividend Yield
8.99%
Price Target
$21.50

Ares Capital MarketRank™ Stock Analysis

Analyst Rating
Moderate Buy
2.71 Rating Score
Upside/​Downside
0.7% Upside
$21.50 Price Target
Short Interest
Bearish
2.90% of Shares Sold Short
Dividend Strength
Moderate
Based on Four Factors
Sustainability
N/A
News Sentiment
0.65mentions of Ares Capital in the last 14 days
Based on 23 Articles This Week
Insider Trading
N/A
Proj. Earnings Growth
-5.13%
From $2.34 to $2.22 Per Share

Overall MarketRank

New Rank-Based ScoringMarketRank is calculated by averaging available category scores (with extra weight given to analysis and valuation), then ranking the company's weighted average against that of other companies.

1.52 out of 5 stars

Finance Sector

721st out of 865 stocks

Investors, Not Elsewhere Classified Industry

3rd out of 14 stocks

ARCC stock logo

About Ares Capital Stock (NASDAQ:ARCC)

Ares Capital Corporation is a specialty finance provider offering small and mid-sized businesses customized financing solutions. Ares Capital Management LLC, a subsidiary of Ares Management Corporation, manages the company. ARCC specializes in acquisition, mezzanine debt, recapitalization, restructuring and leveraged buyout transactions. Ares Commercial Finance provides asset-based cash flow solutions to small and mid-market companies.

ARCC’s investment activities focus on industries such as software, health care services, commercial and professional services, diversified financials, etc. The company offers a range of debt instruments, from senior debt instruments to equity capital, focusing on senior secured debt and debt investments ranging from $10 million to $100 million. ARCC invests through revolvers, first-lien loans, second-lien loans, unitranche (flexible business debt) structures, warrants, mezzanine debt, private high yield, subordinated debt, junior capital and non-control preferred and common equity. The company’s commitment and hold range is $30 to $500 million, and the EBITDA range is $10 to $250 million for corporate customers.

ARCC seeks to generate current income and capital appreciation through debt and equity investments and works to maximize risk-adjusted returns throughout economic cycles. ARCC’s investment committee has over 28 years of relevant experience. It invests across various industries targeting leading companies with a history of stable demonstrated competitive advantages, cash flows, identifiable growth prospects and experienced management teams.

Benefits to portfolio companies, investors and financial sponsors include dedicated and experienced professionals, access to relationships and market intelligence, deal flow, research, infrastructure, due diligence and experience with the broader Ares Management Corporation platform. Shareholder returns come from net interest and dividends from fee income, investments, and in some cases, net capital gains from equity investments. ARCC’s long-term and short-term strategies focus on maximizing relative value through economic cycles and a multi-asset class track record and experience, disciplined growth concentrated on long-term value creation, capital preservation and a long-term patient investor with permanent capital.

On January 12, 2023, Ares Capital Corporation revealed its intention to make a public offering of 9 million shares of common stock with the possibility of an additional 1.35 million shares. This offering increased from their previous offering size of nine million shares and allowed the underwriters to purchase an additional 1.5 million shares. The necessary registration statement was filed with the Securities and Exchange Commission on June 3, 2021, and became effective on the day of filing. Morgan Stanley & Co. LLC, BofA Securities, UBS Investment Bank, RBC Capital Markets, LLC and Wells Fargo Securities were joint lead book-running managers.

The proceeds from the offering will repay outstanding debt from its debt facilities. Ares Capital may also use the money for general corporate purposes, such as investing in portfolio companies following its investment objective. As of December 31, 2022, Ares Capital is regulated as a business development company (BDC) and is the largest publicly traded BDC by market capitalization.

With its experienced investment committee, diverse industry investments and potential for long-term capital appreciation, ARCC is a unique finance provider in the specialty finance market.

ARCC Stock Price History

ARCC Stock News Headlines

ARCC Dec 2024 21.000 put
ARCC Jul 2024 21.000 call
Forecasting The Future: 5 Analyst Projections For Ares Capital
Ares Capital Corp (9A2.HM)
Ares Capital's 9% Yield Is A No-Brainer
Ares Capital: A 9.2% Yielding BDC Cash Cow
Truist Financial Keeps Their Buy Rating on Ares Capital (ARCC)
See More Headlines
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Company Calendar

Ex-Dividend for 3/29 Dividend
3/14/2024
Dividend Payable
3/29/2024
Last Earnings
5/01/2024
Today
5/27/2024
Ex-Dividend for 6/28 Dividend
6/14/2024
Dividend Payable
6/28/2024
Next Earnings (Estimated)
7/23/2024
Fiscal Year End
12/31/2024

Industry, Sector and Symbol

Sector
Finance
Industry
Investors, not elsewhere classified
Sub-Industry
Asset Management & Custody Banks
Current Symbol
NASDAQ:ARCC
CUSIP
04010L10
Employees
N/A
Year Founded
2004

Price Target and Rating

Average Stock Price Target
$21.50
High Stock Price Target
$23.00
Low Stock Price Target
$20.00
Potential Upside/Downside
+0.7%
Consensus Rating
Moderate Buy
Rating Score (0-4)
2.71
Research Coverage
7 Analysts

Profitability

Net Income
$1.52 billion
Pretax Margin
48.13%

Debt

Sales & Book Value

Annual Sales
$2.61 billion
Cash Flow
$2.40 per share
Book Value
$19.32 per share

Miscellaneous

Free Float
611,138,000
Market Cap
$13.12 billion
Optionable
Optionable
Beta
0.99
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Key Executives


ARCC Stock Analysis - Frequently Asked Questions

Should I buy or sell Ares Capital stock right now?

7 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for Ares Capital in the last twelve months. There are currently 2 hold ratings and 5 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should "moderate buy" ARCC shares.
View ARCC analyst ratings
or view top-rated stocks.

What is Ares Capital's stock price target for 2024?

7 Wall Street research analysts have issued 12 month price targets for Ares Capital's stock. Their ARCC share price targets range from $20.00 to $23.00. On average, they predict the company's share price to reach $21.50 in the next twelve months. This suggests a possible upside of 0.7% from the stock's current price.
View analysts price targets for ARCC
or view top-rated stocks among Wall Street analysts.

How have ARCC shares performed in 2024?

Ares Capital's stock was trading at $20.03 at the start of the year. Since then, ARCC stock has increased by 6.6% and is now trading at $21.35.
View the best growth stocks for 2024 here
.

When is Ares Capital's next earnings date?

The company is scheduled to release its next quarterly earnings announcement on Tuesday, July 23rd 2024.
View our ARCC earnings forecast
.

How were Ares Capital's earnings last quarter?

Ares Capital Co. (NASDAQ:ARCC) issued its earnings results on Wednesday, May, 1st. The investment management company reported $0.59 EPS for the quarter, missing analysts' consensus estimates of $0.60 by $0.01. The investment management company earned $701 million during the quarter, compared to analyst estimates of $703.85 million. Ares Capital had a net margin of 62.77% and a trailing twelve-month return on equity of 12.37%. The company's quarterly revenue was up 13.4% on a year-over-year basis. During the same period in the previous year, the business earned $0.56 earnings per share.

How often does Ares Capital pay dividends? What is the dividend yield for Ares Capital?

Ares Capital declared a quarterly dividend on Wednesday, May 1st. Stockholders of record on Friday, June 14th will be given a dividend of $0.48 per share on Friday, June 28th. This represents a $1.92 annualized dividend and a yield of 8.99%. The ex-dividend date is Friday, June 14th.
Read our dividend analysis for ARCC
.

Is Ares Capital a good dividend stock?

Ares Capital (NASDAQ:ARCC) pays an annual dividend of $1.92 per share and currently has a dividend yield of 8.99%. ARCC has a dividend yield higher than 75% of all dividend-paying stocks, making it a leading dividend payer. The company has been increasing its dividend for 3 consecutive year(s), indicating that it does not yet have a strong track record of dividend growth. The dividend payout ratio is 65.75%. This payout ratio is at a healthy, sustainable level, below 75%. Based on EPS estimates, ARCC will have a dividend payout ratio of 86.49% in the coming year. This indicates that the company may not be able to sustain their current dividend.
Read our dividend analysis for ARCC.

What other stocks do shareholders of Ares Capital own?
Who are Ares Capital's major shareholders?

Ares Capital's stock is owned by a number of institutional and retail investors. Top institutional shareholders include Van ECK Associates Corp (1.60%), Confluence Investment Management LLC (0.68%), Advisors Capital Management LLC (0.51%), Sound Income Strategies LLC (0.34%), CCLA Investment Management (0.27%) and Allen Investment Management LLC (0.27%). Insiders that own company stock include Mary Beth Henson, Michael J Arougheti, Michael Kort Schnabel, Michael Lewis Smith, Penelope F Roll and Steven B Mckeever.
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.
Compare Top Brokerages Here.

This page (NASDAQ:ARCC) was last updated on 5/27/2024 by MarketBeat.com Staff

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