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NASDAQ:ARCC

Ares Capital (ARCC) Stock Forecast, Price & News

$19.08

+0.05 (+0.26%)

(As of 06/8/2023 ET)

Compare

Today's Range: $18.96
▼
$19.19
50-Day Range: $17.65
▼
$19.09
52-Week Range: $16.53
▼
$20.75

Volume: 8.04 million shs
Average Volume: 3.21 million shs
Market Capitalization: $10.39 billion

P/E Ratio: 14.91
Dividend Yield: 10.06%
Price Target: $19.86

Ares Capital MarketRank™ Forecast

Analyst Rating: Moderate Buy
2.83 Rating Score
Upside/Downside: 4.1% Upside
$19.86 Price Target
Short Interest: Bearish
3.52% of Shares Sold Short
Dividend Strength: Weak
Based on Four Factors
Sustainability: N/A
News Sentiment: 0.60
Based on 5 Articles This Week
Insider Trading: Acquiring Shares
$267,600 Bought Last Quarter
Proj. Earnings Growth: -2.16%
From $2.31 to $2.26 Per Share

Overall MarketRank^™

MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation.

1.56 out of 5 stars

Finance Sector

793rd out of 858 stocks

Investors, Not Elsewhere Classified Industry

8th out of 15 stocks

1.4

Analyst's Opinion

Consensus Rating
Ares Capital has received a consensus rating of Buy. The company's average rating score is 2.83, and is based on 5 buy ratings, 1 hold rating, and no sell ratings.
Price Target Upside/Downside
According to analysts' consensus price target of $19.86, Ares Capital has a forecasted upside of 4.1% from its current price of $19.08.
Amount of Analyst Coverage
Ares Capital has only been the subject of 2 research reports in the past 90 days.

2.0

Short Interest

Percentage of Shares Shorted
3.52% of the outstanding shares of Ares Capital have been sold short.
Short Interest Ratio / Days to Cover
Ares Capital has a short interest ratio ("days to cover") of 6.
Change versus previous month
Short interest in Ares Capital has recently increased by 1.00%, indicating that investor sentiment is decreasing.

1.7

Dividend Strength

Dividend Leadership
Ares Capital is a leading dividend payer. It pays a dividend yield of 10.07%, putting its dividend yield in the top 25% of dividend-paying stocks.
Dividend Growth
Ares Capital has only been increasing its dividend for 2 years.
Dividend Coverage
The dividend payout ratio of Ares Capital is 150.00%. 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 84.96% in the coming year. This indicates that Ares Capital may not be able to sustain their current dividend.

N/A

Sustainability and ESG

Overall ESG (Environmental, Social, and Governance) Score
There is no current Upright™ data available for ARCC.

2.0

News and Social Media Coverage

News Sentiment
Ares Capital has a news sentiment score of 0.60. 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 news sentiment score is similar to the average news sentiment of Finance companies.
News Coverage This Week
MarketBeat has tracked 5 news articles for Ares Capital this week, compared to 4 articles on an average week.
Search Interest
Only 82 people have searched for ARCC on MarketBeat in the last 30 days. This is a decrease of -32% compared to the previous 30 days.
MarketBeat Follows
Only 34 people have added Ares Capital to their MarketBeat watchlist in the last 30 days. This is a decrease of -17% compared to the previous 30 days.

1.7

Company Ownership

Insider Buying vs. Insider Selling
In the past three months, Ares Capital insiders have bought more of their company's stock than they have sold. Specifically, they have bought $267,600.00 in company stock and sold $0.00 in company stock.
Percentage Held by Insiders
Only 0.64% of the stock of Ares Capital is held by insiders.
Percentage Held by Institutions
Only 32.24% of the stock of Ares Capital is held by institutions.

1.3

Earnings and Valuation

Earnings Growth
Earnings for Ares Capital are expected to decrease by -2.16% in the coming year, from $2.31 to $2.26 per share.
Price to Earnings Ratio vs. the Market
The P/E ratio of Ares Capital is 14.91, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 142.06.
Price to Earnings Ratio vs. Sector
The P/E ratio of Ares Capital is 14.91, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 145.03.
Price to Book Value per Share Ratio
Ares Capital has a P/B Ratio of 1.01. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

See Top Rated MarketRank™ Stocks Here

About Ares Capital (NASDAQ:ARCC) Stock

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.

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ARCC Stock News Headlines

June 8, 2023 | finance.yahoo.com

Is Ares Capital (ARCC) a Buy as Wall Street Analysts Look Optimistic?

June 7, 2023 | msn.com

Ares Capital: A High Yield Opportunity Priced At A Bargain

June 8, 2023 | Behind the Markets (Ad)

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June 7, 2023 | seekingalpha.com

Ares Capital's NAV, Valuation, And Dividend Versus 14 BDC Peers - Part 1 (Includes Recommendation For All Covered Peers As Of 6/5/2023)

June 3, 2023 | americanbankingnews.com

Brokerages Set Ares Capital Co. (NASDAQ:ARCC) Target Price at $19.86

June 1, 2023 | finance.yahoo.com

3 Ultra-High-Yield Dividend Stocks You Can Buy in June Without Any Hesitation

May 25, 2023 | finance.yahoo.com

Here is What to Know Beyond Why Ares Capital Corporation (ARCC) is a Trending Stock

May 25, 2023 | finance.yahoo.com

Ares Capital (ARCC) Up 5.3% Since Last Earnings Report: Can It Continue?

June 8, 2023 | Behind the Markets (Ad)

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May 23, 2023 | finance.yahoo.com

Want $3,000 in Annual Dividend Income? Invest $31,000 in These 3 High-Yield Stocks

May 18, 2023 | americanbankingnews.com

Ares Capital (NASDAQ:ARCC) Coverage Initiated by Analysts at StockNews.com

May 16, 2023 | msn.com

Ares Capital: The 10% Marvel That Dominates High-Yield Investing

May 15, 2023 | finance.yahoo.com

Ares Capital (ARCC) Stock in Focus on 10.5% Dividend Yield

May 12, 2023 | msn.com

Earn 11% Yield: 3 BDC Stocks To Buy According To SA Quant And Philip Mause

May 11, 2023 | finance.yahoo.com

Want $5,000 in Annual Dividend Income? Invest $43,000 in These 3 High-Yield Stocks

May 9, 2023 | americanbankingnews.com

Ares Capital Co. (NASDAQ:ARCC) Receives $19.86 Consensus PT from Analysts

May 7, 2023 | americanbankingnews.com

Ares Capital (NASDAQ:ARCC) Raised to "Hold" at StockNews.com

May 6, 2023 | finance.yahoo.com

Why Buying $1,000 of This 10.6%-Yielding Dividend Stock Could Be a Brilliant Move

May 4, 2023 | msn.com

ARCC: Q1 Update - A Solid Quarter With A Lot Of Dry Powder To Deploy

May 4, 2023 | americanbankingnews.com

Short Interest in Ares Capital Co. (NASDAQ:ARCC) Drops By 5.6%

May 3, 2023 | msn.com

Ares Capital: Lowered Leverage On Purpose And Special Dividends Remain Likely

May 1, 2023 | seekingalpha.com

Ares Capital: A Rock Of Stability With An 11% Yield

April 29, 2023 | americanbankingnews.com

Ares Capital (NASDAQ:ARCC) Price Target Lowered to $20.00 at Citigroup

April 29, 2023 | americanbankingnews.com

Ares Capital Co. (NASDAQ:ARCC) to Post Q3 2023 Earnings of $0.56 Per Share, Oppenheimer Forecasts

April 29, 2023 | americanbankingnews.com

Jefferies Financial Group Brokers Decrease Earnings Estimates for Ares Capital Co. (NASDAQ:ARCC)

April 28, 2023 | msn.com

Citigroup Maintains Ares Capital (ARCC) Buy Recommendation

April 28, 2023 | americanbankingnews.com

Oppenheimer Equities Analysts Lower Earnings Estimates for Ares Capital Co. (NASDAQ:ARCC)

See More Headlines

ARCC Price History

30 days | 90 days | 365 days | Advanced Chart

ARCC Company Calendar

Ex-Dividend for 3/31 Dividend: 3/14/2023
Dividend Payable: 3/31/2023
Last Earnings: 4/25/2023
Today: 6/08/2023
Ex-Dividend for 6/30 Dividend: 6/14/2023
Dividend Payable: 6/30/2023
Next Earnings (Estimated): 7/25/2023
Fiscal Year End: 12/31/2023

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Industry, Sector and Symbol

Stock Exchange: NASDAQ
Industry: Investors, not elsewhere classified
Sub-Industry: Asset Management & Custody Banks
Sector: Finance
Current Symbol: NASDAQ:ARCC
CUSIP: 04010L10
CIK: 1287750
Web: www.arescapitalcorp.com
Phone: (212) 750-7300
Fax: 212-750-1777
Employees: N/A
Year Founded: 2004

Price Target and Rating

Average Stock Price Forecast: $19.86
High Stock Price Forecast: $21.00
Low Stock Price Forecast: $18.00
Forecasted Upside/Downside: +3.6%
Consensus Rating: Moderate Buy
Rating Score (0-4): 2.83
Research Coverage: 6 Analysts

Profitability

EPS (Most Recent Fiscal Year): $1.28
Trailing P/E Ratio: 14.98
Forward P/E Ratio: 8.30
P/E Growth: N/A
Net Income: $600 million
Net Margins: 29.33%
Pretax Margin: 55.23%
Return on Equity: 12.04%
Return on Assets: 5.25%

Debt

Debt-to-Equity Ratio: 1.12
Current Ratio: 1.16
Quick Ratio: 1.16

Sales & Book Value

Annual Sales: $2.10 billion
Price / Sales: 4.98
Cash Flow: $2.12 per share
Price / Cash Flow: 9.04
Book Value: $18.80 per share
Price / Book: 1.02

Miscellaneous

Outstanding Shares: 544,580,000
Free Float: 541,096,000
Market Cap: $10.44 billion
Optionable: Optionable
Beta: 1.01

Key Executives

Michael J. Arougheti
Co-Chairman & Executive Vice President

Kipp deVeer
Chief Executive Officer & Director

Mitch Goldstein
Co-President

Kort Schnabel
Co-President

Penni Roll
Chief Financial Officer

Key Competitors

View All Competitors

Insiders & Institutions

View All Insider Transactions
View All Institutional Transactions

ARCC Stock - Frequently Asked Questions

Should I buy or sell Ares Capital stock right now?: 6 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Ares Capital in the last twelve months. There are currently 1 hold rating and 5 buy ratings for the stock. The consensus among Wall Street analysts is that investors should "buy" ARCC shares.
View ARCC analyst ratings or view top-rated stocks.
What is Ares Capital's stock price forecast for 2023?: 6 equities research analysts have issued 12 month price targets for Ares Capital's stock. Their ARCC share price forecasts range from $18.00 to $21.00. On average, they predict the company's share price to reach $19.86 in the next twelve months. This suggests a possible upside of 3.6% 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 2023?: Ares Capital's stock was trading at $18.47 on January 1st, 2023. Since then, ARCC shares have increased by 3.8% and is now trading at $19.17.
View the best growth stocks for 2023 here.
When is Ares Capital's next earnings date?: The company is scheduled to release its next quarterly earnings announcement on Tuesday, July 25th 2023.
View our ARCC earnings forecast.
How were Ares Capital's earnings last quarter?: Ares Capital Co. (NASDAQ:ARCC) released its quarterly earnings data on Tuesday, April, 25th. The investment management company reported $0.57 earnings per share for the quarter, missing analysts' consensus estimates of $0.59 by $0.02. The investment management company had revenue of $618 million for the quarter, compared to analyst estimates of $633.13 million. Ares Capital had a net margin of 29.33% and a trailing twelve-month return on equity of 12.04%. The business's revenue for the quarter was up 40.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.41 EPS.
How often does Ares Capital pay dividends? What is the dividend yield for Ares Capital?: Ares Capital declared a quarterly dividend on Tuesday, April 25th. Shareholders of record on Thursday, June 15th will be paid a dividend of $0.48 per share on Friday, June 30th. This represents a $1.92 annualized dividend and a dividend yield of 10.02%. The ex-dividend date is Wednesday, June 14th.
Read our dividend analysis for ARCC.
What ETFs hold Ares Capital's stock?: ETFs with the largest weight of Ares Capital (NASDAQ:ARCC) stock in their portfolio include VanEck BDC Income ETF (BIZD), Putnam BDC Income ETF (PBDC), ProShares Global Listed Private Equity ETF (PEX), Anfield Diversified Alternatives ETF (DALT), Sound Enhanced Fixed Income ETF (SDEF), Invesco Global Listed Private Equity ETF (PSP), WisdomTree Alternative Income Fund (HYIN) and Virtus Private Credit Strategy ETF (VPC).

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 10.07%. 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 2 consecutive year(s), indicating that it does not yet have a strong track record of dividend growth. The dividend payout ratio is 150.00%. Payout ratios above 75% are not desirable because they may not be sustainable. Based on EPS estimates, ARCC will have a dividend payout ratio of 84.96% 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?: Based on aggregate information from My MarketBeat watchlists, some companies that other Ares Capital investors own include AT&T (T), Enterprise Products Partners (EPD), Energy Transfer (ET), Annaly Capital Management (NLY), AGNC Investment (AGNC), New Residential Investment (NRZ), AbbVie (ABBV), Cisco Systems (CSCO), Main Street Capital (MAIN) and Verizon Communications (VZ).
What is Ares Capital's stock symbol?: Ares Capital trades on the NASDAQ under the ticker symbol "ARCC."
Who are Ares Capital's major shareholders?: Ares Capital's stock is owned by many different retail and institutional investors. Top institutional investors include Van ECK Associates Corp (1.16%), OMERS ADMINISTRATION Corp (0.87%), Confluence Investment Management LLC (0.83%), Ameriprise Financial Inc. (0.71%), Two Sigma Advisers LP (0.57%) and Advisors Capital Management LLC (0.55%). Insiders that own company stock include Joshua M Bloomstein, Mary Beth Henson, Michael J Arougheti, Michael J Arougheti, Michael K Parks, Michael K Parks, Michael Kort Schnabel, Michael Lewis Smith, Penelope F Roll, R Kipp Deveer, Robert L Rosen 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 WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab.
Compare Top Brokerages Here.
What is Ares Capital's stock price today?: One share of ARCC stock can currently be purchased for approximately $19.17.
How much money does Ares Capital make?: Ares Capital (NASDAQ:ARCC) has a market capitalization of $10.44 billion and generates $2.10 billion in revenue each year. The investment management company earns $600 million in net income (profit) each year or $1.28 on an earnings per share basis.
How can I contact Ares Capital?: Ares Capital's mailing address is 245 PARK AVENUE 44TH FLOOR, NEW YORK NY, 10167. The official website for the company is www.arescapitalcorp.com. The investment management company can be reached via phone at (212) 750-7300, via email at irarcc@aresmgmt.com, or via fax at 212-750-1777.

This page (NASDAQ:ARCC) was last updated on 6/8/2023 by MarketBeat.com Staff

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Ares Capital (ARCC) Stock Forecast, Price & News

Ares Capital MarketRank™ Forecast

Overall MarketRank™

Analyst's Opinion

Short Interest

Percentage of Shares Shorted

Short Interest Ratio / Days to Cover

Change versus previous month

Dividend Strength

Sustainability and ESG

Overall ESG (Environmental, Social, and Governance) Score

News and Social Media Coverage

News Sentiment

News Coverage This Week

Search Interest

MarketBeat Follows

Company Ownership

Earnings and Valuation

About Ares Capital (NASDAQ:ARCC) Stock

ARCC Stock News Headlines

ARCC Price History

ARCC Company Calendar

Industry, Sector and Symbol

Price Target and Rating

Profitability

Debt

Sales & Book Value

Miscellaneous

Key Executives

Key Competitors

Insiders & Institutions

ARCC Stock - Frequently Asked Questions

Overall MarketRank^™