Ares Capital (NASDAQ:ARCC) Price Target Lowered to $21.00 at Truist Financial

Ares Capital (NASDAQ:ARCC) had its price target lowered by analysts at Truist Financial from $22.00 to $21.00 in a report released on Thursday,Benzinga reports. The firm presently has a “buy” rating on the investment management company’s stock. Truist Financial’s price target suggests a potential upside of 13.50% from the company’s current price.

ARCC has been the topic of a number of other reports. Citizens Jmp lowered their price objective on shares of Ares Capital from $23.00 to $22.00 and set a “market outperform” rating on the stock in a research report on Wednesday, April 22nd. JPMorgan Chase & Co. cut 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. 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. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Ares Capital in a report on Tuesday, June 9th. Finally, Wall Street Zen upgraded shares of Ares Capital from a “sell” rating to a “hold” rating in a research note on Saturday, July 25th. Eight equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $20.40.

Ares Capital Stock Performance

ARCC traded down $0.21 on Thursday, hitting $18.50. 1,577,631 shares of the company traded hands, compared to its average volume of 6,322,128. Ares Capital has a 12-month low of $17.40 and a 12-month high of $22.85. The company has a 50 day moving average of $18.67 and a 200-day moving average of $18.92. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.13. The stock has a market capitalization of $13.29 billion, a PE ratio of 11.36 and a beta of 0.56.

Ares Capital (NASDAQ:ARCC) last released its earnings results on Wednesday, July 29th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.47. Ares Capital had a return on equity of 9.85% and a net margin of 37.30%.The business had revenue of $768.00 million for the quarter, compared to analyst estimates of $770.19 million. During the same quarter in the previous year, the company posted $0.50 earnings per share. Sell-side analysts anticipate that Ares Capital will post 1.9 earnings per share for the current year.

Institutional Investors Weigh In On Ares Capital

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Roman Butler Fullerton & Co. grew its stake in shares of Ares Capital by 1.9% during the 1st 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. lifted its stake in shares of Ares Capital by 5.3% in 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 during the period. Perigon Wealth Management LLC lifted its stake in shares of Ares Capital by 1.6% in the fourth 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 boosted its holdings in Ares Capital by 2.0% during the fourth quarter. Diversify Advisory Services LLC now owns 28,186 shares of the investment management company’s stock worth $589,000 after buying an additional 563 shares in the last quarter. Finally, CWS Financial Advisors LLC boosted its holdings in Ares Capital by 4.0% during the first 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 Headlines Impacting Ares Capital

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

• Positive Sentiment: Dividend remains a key support. ARCC declared a third-quarter dividend of $0.48 per share, payable September 30 to shareholders of record September 15. The roughly 10% yield and the company’s 17-year dividend streak reinforce its appeal to income-focused investors. Ares Capital dividend announcement
• Positive Sentiment: Liquidity and lending-position remain solid. Management highlighted ARCC’s scale, improving lending terms and balance-sheet flexibility despite slower transaction activity. The company had approximately $6.7 billion of available borrowing capacity and $383 million in cash at quarter-end, while new investment commitments reached about $2.6 billion. Ares Capital Q2 earnings call highlights
• Positive Sentiment: Core earnings met expectations. Second-quarter net investment income was $359 million, or $0.50 per share, while reported EPS of $0.47 matched consensus. Total investment income increased to $768 million from $745 million a year earlier. Keefe, Bruyette & Woods maintained an “outperform” rating, though it reduced its price target to $20 from $21. Ares Capital earnings report
• Neutral Sentiment: Results were broadly in line, but growth is moderating. Revenue was slightly below analyst expectations, and EPS declined from $0.50 in the year-ago quarter. Lower benchmark rates and higher funding costs could continue to pressure earnings.
• Negative Sentiment: Investment losses hurt GAAP results and NAV. GAAP net income fell to $171 million, or $0.24 per share, from $361 million, or $0.52, a year earlier, as realized and unrealized losses weighed on earnings. NAV declined to $19.35 per share from $19.94 at year-end, increasing investor concerns about credit performance during a slower transaction environment. Ares Capital investment losses report

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.