Ares Capital (NASDAQ:ARCC) Posts Earnings Results, Misses Expectations By $0.01 EPS

Ares Capital (NASDAQ:ARCC) announced its quarterly earnings data on Tuesday. The investment management company reported $0.47 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.01), FiscalAI reports. Ares Capital had a return on equity of 9.89% and a net margin of 42.56%.The company had revenue of $763.00 million for the quarter, compared to the consensus estimate of $779.10 million. During the same quarter in the prior year, the company earned $0.50 EPS. The company’s revenue for the quarter was up 4.2% on a year-over-year basis.

Ares Capital Stock Performance

ARCC stock traded down $0.01 during trading hours on Tuesday, hitting $18.61. 1,217,567 shares of the stock were exchanged, compared to its average volume of 7,250,559. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.12. The firm has a market capitalization of $13.36 billion, a P/E ratio of 10.01 and a beta of 0.58. The company has a 50-day simple moving average of $18.53 and a two-hundred day simple moving average of $19.61. Ares Capital has a 12 month low of $17.40 and a 12 month high of $23.42.

Ares Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Friday, March 13th were given a dividend of $0.48 per share. The ex-dividend date was Friday, March 13th. This represents a $1.92 annualized dividend and a yield of 10.3%. Ares Capital’s dividend payout ratio (DPR) is presently 103.23%.

Insider Buying and Selling at Ares Capital

In other news, CEO Michael Kort Schnabel acquired 12,500 shares of the stock in a transaction on Thursday, February 5th. The shares were purchased at an average price of $19.13 per share, for a total transaction of $239,125.00. Following the transaction, the chief executive officer directly owned 40,500 shares of the company’s stock, valued at approximately $774,765. This represents a 44.64% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Scott C. Lem acquired 5,186 shares of the stock in a transaction on Friday, February 6th. The shares were purchased at an average price of $19.29 per share, for a total transaction of $100,037.94. Following the transaction, the chief financial officer directly owned 39,463 shares in the company, valued at approximately $761,241.27. This trade represents a 15.13% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.49% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. SWAN Capital LLC bought a new position in Ares Capital during the 3rd quarter worth $27,000. Quarry LP bought a new position in Ares Capital during the 3rd quarter worth $33,000. WFA of San Diego LLC bought a new position in Ares Capital during the 2nd quarter worth $36,000. Garton & Associates Financial Advisors LLC bought a new position in shares of Ares Capital in the fourth quarter worth $44,000. Finally, Advocate Investing Services LLC bought a new position in shares of Ares Capital in the fourth quarter worth $62,000. Institutional investors own 27.38% of the company’s stock.

Analysts Set New Price Targets

A number of brokerages have recently issued reports 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 research note on Friday, March 13th. Royal Bank Of Canada dropped their price objective on Ares Capital from $23.00 to $22.00 and set an “outperform” rating on the stock in a research note on Monday, February 9th. Citizens Jmp dropped their price target on Ares Capital from $23.00 to $22.00 and set a “market outperform” rating on the stock in a research note on Wednesday, April 22nd. B. Riley Financial restated a “buy” rating on shares of Ares Capital in a research note on Monday, February 9th. Finally, Keefe, Bruyette & Woods dropped their price target on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a research note on Thursday, April 16th. Seven investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $21.13.

Key Headlines Impacting Ares Capital

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

• Positive Sentiment: Board declared a Q2 2026 dividend of $0.48 per share (payable June 30, record June 15), supporting ARCC’s income appeal and yield-focused investor demand. Ares Capital Corporation Announces March 31, 2026 Financial Results and Declares Second Quarter 2026 Dividend of $0.48 Per Share
• Positive Sentiment: Featured in recent “passive income” and “high-yield” stock roundups, reinforcing investor interest from dividend-seeking strategies. 3 Passive Income Stocks That Will Pad Your Wallet
• Positive Sentiment: A bullish Seeking Alpha piece argues recent results answer many bear concerns, which can reassure long-term income investors. Ares Capital: The King Has Spoken And Most Bear Arguments Have Been Answered
• Neutral Sentiment: Analysts and write-ups are parsing Q1 metrics vs. expectations (detailed look at key metrics and comparatives), which may guide analyst revisions but doesn’t change the cash-dividend story immediately. Compared to Estimates, Ares Capital (ARCC) Q1 Earnings: A Look at Key Metrics
• Neutral Sentiment: Preview/coverage ahead of and around the report set expectations for modest revenue and EPS growth; investors will watch management commentary on deal flow and credit trends on the conference call. Ares Capital Q1 Preview: What to expect
• Negative Sentiment: Reported Q1 EPS of $0.47 missed consensus ~$0.48 and revenue of $763M missed estimates (~$779M); smaller-than-expected results can pressure short-term sentiment. View Press Release
• Negative Sentiment: Coverage notes unrealized losses and lower transaction activity as headwinds in the quarter — investors may be concerned about mark-to-market volatility and deal flow ahead. Ares Capital misses estimates as unrealized losses weigh

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.