Orographic Financial Advisors LLC Makes New $1.82 Million Investment in Ares Capital Corporation $ARCC

Orographic Financial Advisors LLC purchased a new stake in Ares Capital Corporation (NASDAQ:ARCC) during the 1st quarter, Holdings Channel.com reports. The fund purchased 100,812 shares of the investment management company’s stock, valued at approximately $1,816,000. Ares Capital makes up 1.3% of Orographic Financial Advisors LLC’s investment portfolio, making the stock its 24th largest holding.

Other hedge funds also recently made changes to their positions in the company. Roman Butler Fullerton & Co. lifted its stake in Ares Capital by 1.9% during the first quarter. Roman Butler Fullerton & Co. now owns 27,713 shares of the investment management company’s stock worth $504,000 after purchasing an additional 528 shares during the period. First Citizens Bank & Trust Co. boosted its holdings in Ares Capital by 5.3% during the fourth quarter. First Citizens Bank & Trust Co. now owns 10,530 shares of the investment management company’s stock valued at $213,000 after purchasing an additional 532 shares in the last quarter. Perigon Wealth Management LLC grew its stake in shares of Ares Capital by 1.6% in the 4th quarter. Perigon Wealth Management LLC now owns 34,700 shares of the investment management company’s stock valued at $702,000 after purchasing an additional 547 shares during the period. Diversify Advisory Services LLC grew its stake in shares of Ares Capital by 2.0% in the 4th quarter. Diversify Advisory Services LLC now owns 28,186 shares of the investment management company’s stock valued at $589,000 after purchasing an additional 563 shares during the period. Finally, CWS Financial Advisors LLC raised its holdings in shares of Ares Capital by 4.0% in the 1st quarter. CWS Financial Advisors LLC now owns 14,956 shares of the investment management company’s stock worth $270,000 after buying an additional 582 shares in the last quarter. Institutional investors and hedge funds own 27.38% of the company’s stock.

Key Ares Capital News

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

• Positive Sentiment: Dividend remains attractive: ARCC declared a third-quarter dividend of $0.48 per share, payable September 30 to shareholders of record September 15. The annualized payout implies a yield of roughly 10.3% and extends the company’s long dividend record. Ares Capital financial results and dividend announcement
• Positive Sentiment: Core earnings held up: Second-quarter net investment income was $0.50 per share, while reported earnings of $0.47 per share matched analyst expectations. Management highlighted ARCC’s scale, strong liquidity, improving lending terms and balance-sheet flexibility. New investment commitments totaled approximately $2.6 billion, with $2.2 billion funded. Ares Capital Q2 earnings call highlights
• Neutral Sentiment: Analysts remain constructive but lowered targets: Truist cut its price target from $22 to $21 while maintaining a “buy” rating. Keefe, Bruyette & Woods reduced its target from $21 to $20 but kept an “outperform” rating, indicating continued expected upside but more cautious valuation assumptions.
• Negative Sentiment: Profitability weakened year over year: GAAP net income fell to $171 million, or $0.24 per share, from $361 million, or $0.52 per share, in the prior-year quarter. Realized and unrealized losses, along with higher expenses, offset improved investment income. Revenue of $768 million was slightly below the $770.2 million consensus estimate. ARCC Q2 earnings and expenses
• Negative Sentiment: Net asset value declined: NAV was $19.35 per share at June 30, down from $19.94 at year-end 2025. Management is also navigating a slower transaction market, creating potential pressure on future investment growth and credit performance.

Wall Street Analyst Weigh In

Several equities analysts recently commented on ARCC shares. Citizens Jmp cut their target price on Ares Capital from $23.00 to $22.00 and set a “market outperform” rating for the company in a research report on Wednesday, April 22nd. B. Riley Financial lowered their price target on Ares Capital from $22.00 to $20.00 and set a “buy” rating on the stock in a research report on Wednesday, April 29th. Weiss Ratings reiterated a “hold (c)” rating on shares of Ares Capital in a research note on Tuesday, June 9th. Royal Bank Of Canada cut their price objective on Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a report on Wednesday, April 29th. Finally, Wells Fargo & Company restated an “equal weight” rating and issued a $19.00 target price (down from $20.00) on shares of Ares Capital in a research note on Friday, June 12th. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $20.40.

Ares Capital Stock Up 0.6%

Shares of ARCC opened at $18.83 on Friday. The company has a market capitalization of $13.52 billion, a P/E ratio of 13.95 and a beta of 0.56. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.40 and a quick ratio of 1.40. Ares Capital Corporation has a one year low of $17.40 and a one year high of $22.85. The business’s 50 day simple moving average is $18.67 and its 200-day simple moving average is $18.91.

Ares Capital (NASDAQ:ARCC) last released its quarterly earnings results on Wednesday, July 29th. The investment management company reported $0.47 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.47. Ares Capital had a return on equity of 9.74% and a net margin of 30.91%.The firm had revenue of $768.00 million during the quarter, compared to analysts’ expectations of $770.19 million. During the same period last year, the firm posted $0.50 EPS. As a group, sell-side analysts predict that Ares Capital Corporation will post 1.9 EPS for the current fiscal year.

Ares Capital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be issued a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 10.2%. The ex-dividend date is Tuesday, September 15th. Ares Capital’s dividend payout ratio is presently 142.22%.

Ares Capital Company Profile

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.