Royal Bank Of Canada Cuts Ares Capital (NASDAQ:ARCC) Price Target to $21.00

Ares Capital (NASDAQ:ARCC) had its target price lowered by Royal Bank Of Canada from $22.00 to $21.00 in a research note issued to investors on Wednesday, Marketbeat Ratings reports. The brokerage currently has an outperform rating on the investment management company’s stock.

A number of other research analysts also recently commented on ARCC. UBS Group dropped their price objective on Ares Capital from $21.00 to $19.00 and set a “neutral” rating on the stock in a report on Friday, March 13th. Wall Street Zen downgraded Ares Capital from a “hold” rating to a “sell” rating in a report on Saturday, February 7th. Keefe, Bruyette & Woods dropped their price objective on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Thursday, April 16th. B. Riley Financial reiterated a “buy” rating on shares of Ares Capital in a report on Monday, February 9th. Finally, Citizens Jmp dropped their price objective on Ares Capital from $23.00 to $22.00 and set a “market outperform” rating on the stock in a report on Wednesday, April 22nd. Nine research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $20.75.

Ares Capital Price Performance

ARCC opened at $19.25 on Wednesday. The stock’s 50-day moving average price is $18.51 and its 200 day moving average price is $19.60. Ares Capital has a 12-month low of $17.40 and a 12-month high of $23.42. The company has a current ratio of 1.40, a quick ratio of 1.70 and a debt-to-equity ratio of 1.13. The firm has a market cap of $13.82 billion, a price-to-earnings ratio of 11.81 and a beta of 0.58.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings results on Tuesday, April 28th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.01). The company had revenue of $763.00 million during the quarter, compared to analyst estimates of $778.00 million. Ares Capital had a net margin of 37.30% and a return on equity of 9.85%. Ares Capital’s revenue for the quarter was up 4.2% on a year-over-year basis. During the same period in the prior year, the business earned $0.50 EPS. As a group, sell-side analysts expect that Ares Capital will post 1.92 earnings per share for the current year.

Ares Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be issued a dividend of $0.48 per share. The ex-dividend date of this dividend is Monday, June 15th. This represents a $1.92 annualized dividend and a yield of 10.0%. Ares Capital’s payout ratio is currently 117.79%.

Insider Buying and Selling at Ares Capital

In other news, CEO Michael Kort Schnabel acquired 12,500 shares of Ares Capital stock in a transaction that occurred on Thursday, February 5th. The stock was purchased at an average cost of $19.13 per share, with a total value of $239,125.00. Following the completion of the acquisition, the chief executive officer owned 40,500 shares in the company, valued at $774,765. This trade represents a 44.64% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Scott C. Lem acquired 5,186 shares of Ares Capital stock in a transaction dated Friday, February 6th. The stock was bought at an average price of $19.29 per share, for a total transaction of $100,037.94. Following the completion of the transaction, the chief financial officer directly owned 39,463 shares of the company’s stock, valued at approximately $761,241.27. This represents a 15.13% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders own 0.49% of the company’s stock.

Institutional Investors Weigh In On Ares Capital

A number of hedge funds and other institutional investors have recently made changes to their positions in ARCC. Canal Capital Management LLC grew its position in Ares Capital by 1.6% during the fourth quarter. Canal Capital Management LLC now owns 32,955 shares of the investment management company’s stock valued at $667,000 after acquiring an additional 520 shares during the period. BKM Wealth Management LLC grew its position in Ares Capital by 1.3% during the third quarter. BKM Wealth Management LLC now owns 42,394 shares of the investment management company’s stock valued at $865,000 after acquiring an additional 525 shares during the period. Roman Butler Fullerton & Co. grew its position 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 valued at $504,000 after acquiring an additional 528 shares during the period. First Citizens Bank & Trust Co. grew its position 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 acquiring an additional 532 shares during the period. Finally, Perigon Wealth Management LLC grew its position in Ares Capital by 1.6% during the fourth quarter. Perigon Wealth Management LLC now owns 34,700 shares of the investment management company’s stock valued at $702,000 after acquiring an additional 547 shares during the period. Hedge funds and other institutional investors own 27.38% of the company’s stock.

Key Stories Impacting Ares Capital

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

• Positive Sentiment: Ares Management’s record first?quarter fundraising and commentary that its credit platform — including Ares Capital — sees limited strain from industry liquidity or software exposures supports confidence in ARCC’s portfolio and dividend sustainability. Private credit roundup: the ebb and flow of fresh investment
• Positive Sentiment: Income-focused publications are highlighting ARCC as a high?yield option, which can attract dividend-seeking flows into the stock. This interest supports demand for the shares from yield investors. Want $4,087 in Passive Income? Invest $10,000 Into These 3 High-Yielding Stocks
• Neutral Sentiment: Zacks and other retail?investor trackers flag ARCC as a trending ticker, reflecting increased retail attention that can raise short?term volume and volatility but not necessarily change fundamentals. Ares Capital Corporation (ARCC) Is a Trending Stock
• Neutral Sentiment: Ares updated its at?the?market (ATM) equity offering program — provides liquidity and optional capital but could be dilutive if shares are issued; impact depends on future use. Ares Capital Updates At-the-Market Equity Offering Program
• Negative Sentiment: Analysts trimmed price targets recently (Oppenheimer to $21, B. Riley to $20), signaling tempered upside expectations and contributing downward pressure on sentiment. Oppenheimer cuts price target B. Riley adjusts price target
• Negative Sentiment: Q1 results were mixed: EPS missed by $0.01 and revenue came in slightly under estimates — fundamentals mostly steady but the small miss keeps some near?term upside capped. Ares Capital Corp Q1 2026 Earnings Call Highlights

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.