Keefe, Bruyette & Woods Lowers Ares Capital (NASDAQ:ARCC) Price Target to $20.00

Ares Capital (NASDAQ:ARCC) had its target price lowered by analysts at Keefe, Bruyette & Woods from $21.00 to $20.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage currently has an “outperform” rating on the investment management company’s stock. Keefe, Bruyette & Woods’ price objective indicates a potential upside of 6.89% from the stock’s current price.

Several other equities analysts have also issued reports on the stock. Royal Bank Of Canada cut their price objective on shares of Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Wednesday, April 29th. Wells Fargo & Company restated an “equal weight” rating and issued a $19.00 price target (down from $20.00) on shares of Ares Capital in a report on Friday, June 12th. Oppenheimer cut their price target on shares of Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Wednesday, April 29th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Ares Capital in a research report on Tuesday, June 9th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Ares Capital from $19.00 to $18.50 and set an “overweight” rating for the company in a research report on Thursday, July 2nd. Eight analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $20.50.

Ares Capital Stock Performance

Shares of NASDAQ:ARCC opened at $18.71 on Thursday. The firm’s 50 day simple moving average is $18.67 and its 200-day simple moving average is $18.92. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.40 and a current ratio of 1.40. Ares Capital has a one year low of $17.40 and a one year high of $22.93. The firm has a market cap of $13.43 billion, a PE ratio of 11.48 and a beta of 0.56.

Ares Capital (NASDAQ:ARCC) last released its quarterly earnings data on Wednesday, July 29th. The investment management company reported $0.47 EPS for the quarter, hitting the consensus estimate of $0.47. Ares Capital had a return on equity of 9.85% and a net margin of 37.30%.The company had revenue of $768.00 million for the quarter, compared to the consensus estimate of $770.19 million. During the same period last year, the business posted $0.50 EPS. As a group, equities analysts predict that Ares Capital will post 1.9 EPS for the current year.

Institutional Investors Weigh In On Ares Capital

A number of large investors have recently modified their holdings of the business. Palladiem LLC acquired a new position in shares of Ares Capital during the 4th quarter worth approximately $26,000. SWAN Capital LLC acquired a new stake in shares of Ares Capital in the 3rd quarter worth $27,000. Sankala Group LLC purchased a new position in shares of Ares Capital during the 4th quarter worth $28,000. Core Wealth Advisors LLC acquired a new position in shares of Ares Capital during the 4th quarter valued at about $33,000. Finally, Quarry LP purchased a new stake in shares of Ares Capital in the third quarter valued at about $33,000. Hedge funds and other institutional investors own 27.38% of the company’s stock.

Key Headlines Impacting Ares Capital

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

• Positive Sentiment: Net investment income was $359 million, or $0.50 per share, while adjusted earnings of $0.47 per share matched analysts’ estimates. Total investment income rose to $768 million from $745 million a year earlier. Ares Capital second-quarter results
• Positive Sentiment: The board declared a quarterly dividend of $0.48 per share, payable September 30 to shareholders of record September 15. The payout supports ARCC’s roughly 10% yield and reinforces its appeal to income-focused investors. Ares Capital dividend announcement
• Positive Sentiment: Management emphasized stable recurring income, strong liquidity and new investment commitments of approximately $2.6 billion, including $2.2 billion funded. ARCC ended the quarter with $383 million in cash and about $6.7 billion of borrowing capacity. Ares Capital earnings call highlights
• Neutral Sentiment: Revenue of $768 million was slightly below the $770.19 million consensus, and earnings declined from $0.50 per share in the year-ago quarter. The result was broadly in line with expectations, limiting the surprise factor. Ares Capital key metrics comparison
• Negative Sentiment: GAAP net income fell to $171 million, or $0.24 per share, from $361 million, or $0.52 per share, a year earlier, as realized and unrealized losses weighed on results. Net asset value also declined to $19.35 per share from $19.94 at year-end 2025. Ares Capital losses hit earnings
• Negative Sentiment: Investors remain concerned that a credit downturn or recession could increase portfolio defaults, reduce asset values and put pressure on ARCC’s high-yield dividend. Lower benchmark interest rates could also weigh on future investment income. Credit downturn risk to Ares Capital dividend

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.