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NASDAQ:ARCC

Ares Capital (ARCC) Stock Forecast, Price & News

$19.08

-0.23 (-1.19%)

(As of 09/21/2023 ET)

Compare

Today's Range: $19.07
▼
$19.30
50-Day Range: $19.07
▼
$19.81
52-Week Range: $16.53
▼
$20.17

Volume: 2.14 million shs
Average Volume: 2.21 million shs
Market Capitalization: $10.63 billion

P/E Ratio: 11.56
Dividend Yield: 10.06%
Price Target: $20.00

Ares Capital MarketRank™ Forecast

Analyst Rating: Moderate Buy
2.83 Rating Score
Upside/Downside: 4.8% Upside
$20.00 Price Target
Short Interest: Healthy
3.21% of Shares Sold Short
Dividend Strength: Weak
Based on Four Factors
Sustainability: N/A
News Sentiment: 1.30
Based on 8 Articles This Week
Insider Trading: N/A
Proj. Earnings Growth: -1.28%
From $2.34 to $2.31 Per Share

Overall MarketRank^™

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

1.77 out of 5 stars

Finance Sector

723rd out of 842 stocks

Investors, Not Elsewhere Classified Industry

6th out of 15 stocks

1.4

Analyst's Opinion

Consensus Rating
Ares Capital has received a consensus rating of Moderate 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 $20.00, Ares Capital has a forecasted upside of 4.8% from its current price of $19.08.
Amount of Analyst Coverage
Ares Capital has only been the subject of 1 research reports in the past 90 days.

4.0

Short Interest

Percentage of Shares Shorted
3.21% 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 5.8.
Change versus previous month
Short interest in Ares Capital has recently decreased by 9.46%, indicating that investor sentiment is improving significantly.

1.7

Dividend Strength

Dividend Leadership
Ares Capital is a leading dividend payer. It pays a dividend yield of 9.92%, 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 116.36%. 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 83.12% 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.

3.5

News and Social Media Coverage

News Sentiment
Ares Capital has a news sentiment score of 1.30. 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 0.72 average news sentiment score of Finance companies.
News Coverage This Week
MarketBeat has tracked 8 news articles for Ares Capital this week, compared to 4 articles on an average week.
Search Interest
Only 81 people have searched for ARCC on MarketBeat in the last 30 days. This is a decrease of -11% compared to the previous 30 days.
MarketBeat Follows
68 people have added Ares Capital to their MarketBeat watchlist in the last 30 days. This is an increase of 240% compared to the previous 30 days.

0.0

Company Ownership

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 0.64% of the stock of Ares Capital is held by insiders.
Percentage Held by Institutions
Only 29.32% 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 -1.28% in the coming year, from $2.34 to $2.31 per share.
Price to Earnings Ratio vs. the Market
The P/E ratio of Ares Capital is 11.56, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 125.42.
Price to Earnings Ratio vs. Sector
The P/E ratio of Ares Capital is 11.56, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 91.09.
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.

ARCC Price History

30 days | 90 days | 365 days | Advanced Chart

ARCC Stock News Headlines

September 21, 2023 | msn.com

Ares Capital's NAV, Valuation, And Dividend Vs. 14 BDC Peers - Part 2 (Includes Q4 2023 + Q1 2024 Dividend Projection)

September 20, 2023 | finance.yahoo.com

Seeking up to 10% Dividend Yield? Analysts Suggest 2 Dividend Stocks to Buy

September 22, 2023 | Edge On The Street (Ad)

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September 14, 2023 | finance.yahoo.com

Unraveling the Dividend Performance of Ares Capital Corp (ARCC)

September 14, 2023 | americanbankingnews.com

Traders Buy Large Volume of Ares Capital Call Options (NASDAQ:ARCC)

September 13, 2023 | msn.com

Ares Capital's NAV, Valuation, And Dividend Versus 14 BDC Peers - Part 1 (Includes Recommendations As Of 9/8/2023)

September 13, 2023 | seekingalpha.com

Unlocking Ares Capital's Income Potential: A Fresh Look At Dividend Timing Strategies

September 9, 2023 | finance.yahoo.com

Business Development Corporations (BDCs)

September 22, 2023 | Edge On The Street (Ad)

The Strategic Gold Play You Haven't Heard About

September 6, 2023 | finance.yahoo.com

Is It Worth Investing in Ares Capital (ARCC) Based on Wall Street's Bullish Views?

September 6, 2023 | seekingalpha.com

Better Understanding Of Ares Capital Corporation's Coy Management

August 29, 2023 | seekingalpha.com

Ares Capital: Assessing The Recent Results For 10% Yield

August 23, 2023 | finance.yahoo.com

Here's How Ares Capital Can Afford Its 10% Dividend Yield

August 10, 2023 | msn.com

Ares Capital: No Longer A Steal, But The 9.8% Yield Remains Solid (Downgrade)

August 9, 2023 | msn.com

Better High Yield Buy After Quarterly Results: Ares Capital Vs. Capital Southwest

August 7, 2023 | msn.com

Ares Capital: 10% Yield And Potential Outperformance - Does It Get Any Better?

August 3, 2023 | msn.com

Ares Capital Q2 Update: Another Strong Quarter

August 2, 2023 | msn.com

2 Terrific Blue Chips For August, Yielding 6-10%

August 1, 2023 | seekingalpha.com

Ares Capital: Still The BDC King Yielding 9.82%

August 1, 2023 | fool.com

Is Ares Capital Corporation Stock a Buy?

July 31, 2023 | seekingalpha.com

Ares Capital: It's Tough To Justify A Buy (Rating Downgrade)

July 31, 2023 | finance.yahoo.com

3 Smart Ways to Earn Yields of 9.4% or More

July 28, 2023 | finance.yahoo.com

Ares Capital Corporation Prices Public Offering of $600 Million 7.000% Unsecured Notes Due 2027

July 27, 2023 | msn.com

JMP Securities Reiterates Ares Capital (ARCC) Market Outperform Recommendation

July 26, 2023 | benzinga.com

Ares Capital Q2: Earnings Beat, Rising Portfolio Yields & More

July 26, 2023 | msn.com

Wells Fargo Maintains Ares Capital (ARCC) Equal-Weight Recommendation

July 26, 2023 | msn.com

RBC Capital Maintains Ares Capital (ARCC) Outperformer Recommendation

See More Headlines

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ARCC Company Calendar

Ex-Dividend for 6/30 Dividend: 6/14/2023
Dividend Payable: 6/30/2023
Last Earnings: 7/25/2023
Ex-Dividend for 9/29 Dividend: 9/14/2023
Today: 9/22/2023
Dividend Payable: 9/29/2023
Next Earnings (Estimated): 10/24/2023
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: $20.00
High Stock Price Forecast: $21.00
Low Stock Price Forecast: $18.00
Forecasted Upside/Downside: +4.8%
Consensus Rating: Moderate Buy
Rating Score (0-4): 2.83
Research Coverage: 6 Analysts

Profitability

EPS (Most Recent Fiscal Year): $1.65
Trailing P/E Ratio: 11.56
Forward P/E Ratio: 8.15
P/E Growth: N/A
Net Income: $600 million
Net Margins: 36.52%
Pretax Margin: 53.89%
Return on Equity: 12.47%
Return on Assets: 5.55%

Debt

Debt-to-Equity Ratio: 1.10
Current Ratio: 1.43
Quick Ratio: 1.43

Sales & Book Value

Annual Sales: $2.10 billion
Price / Sales: 5.07
Cash Flow: $2.08 per share
Price / Cash Flow: 9.18
Book Value: $18.80 per share
Price / Book: 1.01

Miscellaneous

Outstanding Shares: 557,380,000
Free Float: 553,812,000
Market Cap: $10.63 billion
Optionable: Optionable
Beta: 1.00

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Key Executives

Mr. Michael J. Arougheti (Age 51)
Co-Chairman & Exec. VP

Mr. Bennett Rosenthal (Age 60)
Co-Founder & Co-Chairman

Mr. Robert Kipp DeVeer III (Age 50)
CEO & Director

Mr. Mitchell S. Goldstein CPA (Age 56)
CPA, Co-Pres

Mr. Kort Schnabel (Age 46)
Co-Pres, Partner & Co-Head of U.S. Direct Lending

Ms. Penelope F. Roll (Age 57)
Chief Financial Officer

Ms. Jana Markowicz (Age 42)
Chief Operating Officer

Mr. Scott C. Lem (Age 45)
Chief Accounting Officer, VP & Treasurer

Mr. John W. Stilmar
MD of Public Investor Relations & Communications

Ms. Lisa A. Morgan (Age 46)
Chief Compliance 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 equities research analysts have issued "buy," "hold," and "sell" ratings for Ares Capital in the last year. There are currently 1 hold rating and 5 buy ratings for the stock. The consensus among Wall Street equities 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 forecast for 2023?: 6 equities research analysts have issued 1-year price objectives for Ares Capital's stock. Their ARCC share price forecasts range from $18.00 to $21.00. On average, they expect the company's stock price to reach $20.00 in the next year. This suggests a possible upside of 4.8% 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 at the beginning of the year. Since then, ARCC shares have increased by 3.3% and is now trading at $19.08.
View the best growth stocks for 2023 here.
Are investors shorting Ares Capital?: Ares Capital saw a decrease in short interest in August. As of August 31st, there was short interest totaling 17,890,000 shares, a decrease of 9.5% from the August 15th total of 19,760,000 shares. Based on an average trading volume of 3,090,000 shares, the days-to-cover ratio is currently 5.8 days.
View Ares Capital's Short Interest.
When is Ares Capital's next earnings date?: The company is scheduled to release its next quarterly earnings announcement on Tuesday, October 24th 2023.
View our ARCC earnings forecast.
How were Ares Capital's earnings last quarter?: Ares Capital Co. (NASDAQ:ARCC) issued its quarterly earnings data on Tuesday, July, 25th. The investment management company reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.57 by $0.01. The investment management company had revenue of $634 million for the quarter, compared to analyst estimates of $623.26 million. Ares Capital had a net margin of 36.52% and a trailing twelve-month return on equity of 12.47%.
How often does Ares Capital pay dividends? What is the dividend yield for Ares Capital?: Ares Capital declared a quarterly dividend on Tuesday, July 25th. Stockholders of record on Friday, September 15th will be paid a dividend of $0.48 per share on Friday, September 29th. This represents a $1.92 dividend on an annualized basis and a yield of 10.06%. The ex-dividend date is Thursday, September 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), ProShares Global Listed Private Equity ETF (PEX), Putnam BDC Income ETF (PBDC), Anfield Diversified Alternatives ETF (DALT), Sound Enhanced Fixed Income ETF (FXED), Sound Enhanced Fixed Income ETF (SDEF), Invesco Global Listed Private Equity ETF (PSP) and WisdomTree Alternative Income Fund (HYIN).

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 9.92%. 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 116.36%. 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 83.12% 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 a number of institutional and retail investors. Top institutional investors include Van ECK Associates Corp (1.21%), Confluence Investment Management LLC (0.82%), Advisors Capital Management LLC (0.54%), Enstar Group LTD (0.50%), Border to Coast Pensions Partnership Ltd (0.42%) and Osaic Holdings Inc. (0.37%). Insiders that own company stock include Joshua M Bloomstein, Mary Beth Henson, Michael J Arougheti, Michael J Arougheti, Michael Kort Schnabel, Michael Lewis Smith, Penelope F Roll, R Kipp Deveer 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 $19.08.
How much money does Ares Capital make?: Ares Capital (NASDAQ:ARCC) has a market capitalization of $10.63 billion and generates $2.10 billion in revenue each year. The investment management company earns $600 million in net income (profit) each year or $1.65 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 9/22/2023 by MarketBeat.com Staff

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