Ares Capital (NASDAQ:ARCC) Lowered to Sell Rating by Wall Street Zen

Posted by Joseph Griffin on Feb 8th, 2026

Wall Street Zen downgraded shares of Ares Capital (NASDAQ:ARCC – Free Report) from a hold rating to a sell rating in a report released on Saturday.

Several other research analysts have also recently weighed in on ARCC. UBS Group dropped their price target on shares of Ares Capital from $22.50 to $21.00 and set a “neutral” rating on the stock in a research note on Tuesday, October 14th. Royal Bank Of Canada cut their price target on Ares Capital from $24.00 to $23.00 and set an “outperform” rating for the company in a report on Wednesday, October 29th. Wells Fargo & Company reduced their price target on Ares Capital from $21.00 to $20.00 and set an “overweight” rating for the company in a research report on Thursday. Capital One Financial set a $22.50 price objective on Ares Capital in a research report on Friday, October 10th. Finally, Citigroup reissued a “market outperform” rating on shares of Ares Capital in a report on Thursday, October 30th. Seven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $22.13.

Check Out Our Latest Stock Report on Ares Capital

Ares Capital Trading Up 2.8%

Shares of NASDAQ:ARCC opened at $19.31 on Friday. The stock’s 50-day simple moving average is $20.38 and its two-hundred day simple moving average is $20.87. The stock has a market capitalization of $13.86 billion, a price-to-earnings ratio of 10.38 and a beta of 0.59. Ares Capital has a 52-week low of $18.26 and a 52-week high of $23.63. The company has a debt-to-equity ratio of 1.12, a quick ratio of 2.20 and a current ratio of 1.70.

Ares Capital (NASDAQ:ARCC – Get Free Report) last issued its quarterly earnings data on Wednesday, February 4th. The investment management company reported $0.50 earnings per share for the quarter, hitting the consensus estimate of $0.50. The firm had revenue of $793.00 million for the quarter, compared to analysts’ expectations of $795.20 million. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The business’s quarterly revenue was up 4.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.55 EPS. Analysts expect that Ares Capital will post 2.19 EPS for the current year.

Ares Capital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Friday, March 13th will be paid a $0.48 dividend. The ex-dividend date is Friday, March 13th. This represents a $1.92 annualized dividend and a yield of 9.9%. Ares Capital’s payout ratio is presently 103.23%.

Institutional Investors Weigh In On Ares Capital

Several large investors have recently made changes to their positions in the company. UBS Group AG boosted its stake in Ares Capital by 41.8% during the fourth quarter. UBS Group AG now owns 11,201,905 shares of the investment management company’s stock valued at $226,615,000 after buying an additional 3,301,890 shares during the last quarter. Bank of America Corp DE boosted its position in shares of Ares Capital by 8.9% during the 2nd quarter. Bank of America Corp DE now owns 8,678,129 shares of the investment management company’s stock valued at $190,572,000 after acquiring an additional 705,882 shares during the last quarter. JPMorgan Chase & Co. boosted its position in shares of Ares Capital by 18.6% during the 2nd quarter. JPMorgan Chase & Co. now owns 6,404,876 shares of the investment management company’s stock valued at $140,651,000 after acquiring an additional 1,006,460 shares during the last quarter. Legal & General Group Plc grew its holdings in shares of Ares Capital by 5.4% in the second quarter. Legal & General Group Plc now owns 4,955,567 shares of the investment management company’s stock valued at $108,799,000 after purchasing an additional 252,947 shares in the last quarter. Finally, Ameriprise Financial Inc. increased its position in Ares Capital by 6.3% in the second quarter. Ameriprise Financial Inc. now owns 3,794,378 shares of the investment management company’s stock worth $83,353,000 after purchasing an additional 225,984 shares during the last quarter. 27.38% of the stock is owned by institutional investors.

Key Headlines Impacting Ares Capital

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

Positive Sentiment: Q4 results showed resilience: total investment income rose and core earnings roughly met/edged past estimates (EPS reported around $0.50–$0.517), supporting the dividend profile and helping shares. ARCC’s Q4 Earnings Meet, Stock Up on Higher Total Investment Income Ares Capital (ARCC) Q4 2025 Earnings Transcript
Positive Sentiment: Multiple analysts and outlets are emphasizing ARCC’s high, reliable dividend (roughly 10% yield), which attracts income-focused investors and supports the stock in volatile markets. Coverage includes a Seeking Alpha upgrade/positive take and a Motley Fool piece highlighting momentum. Ares Capital: When Things Get Shaky, You Have To Stick With The King (Rating Upgrade) This 10%-Yielding Dividend Stock is Coming Off a Record Year With Lots Of Momentum in 2026
Neutral Sentiment: Analyst commentary remains mixed-to-supportive: Wells Fargo kept an overweight stance but trimmed its price target slightly (see negative item). Overall coverage is balanced around yield stability versus margin/expense pressure. Benzinga Report
Neutral Sentiment: The earnings call was characterized as “balancing strength and strain” — management flagged areas of resilience (investment income, portfolio performance) alongside cost/expense pressures and portfolio dynamics; read the call summary for detail. Ares Capital (ARCC) Earnings Call Balances Strength and Strain
Neutral Sentiment: Reported short interest shows no meaningful build (data shows effectively zero change), so short-covering is not a material driver of today’s move.
Negative Sentiment: Wells Fargo cut its price target from $21 to $20 despite keeping an overweight rating — a modest reduction in upside that could cap near-term analyst-driven gains. Wells Fargo Lowers Price Target

About Ares Capital

(Get Free Report)

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.