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

Ares Capital (NASDAQ:ARCC) was downgraded by equities researchers at Wall Street Zen from a “hold” rating to a “sell” rating in a research report issued on Saturday.

A number of other equities analysts have also commented on ARCC. Weiss Ratings restated a “hold (c+)” rating on shares of Ares Capital in a research report on Monday, December 29th. Royal Bank Of Canada cut their price target on shares of Ares Capital from $24.00 to $23.00 and set an “outperform” rating for the company in a report on Wednesday, October 29th. Citigroup restated a “market outperform” rating on shares of Ares Capital in a research report on Thursday, October 30th. Keefe, Bruyette & Woods decreased their price target on shares of Ares Capital from $23.00 to $22.00 and set an “outperform” rating on the stock in a report on Wednesday, October 29th. Finally, Wells Fargo & Company dropped their price objective on Ares Capital from $21.00 to $20.00 and set an “overweight” rating for the company in a research note on Thursday. Seven research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $22.13.

Ares Capital Price Performance

Shares of NASDAQ ARCC opened at $19.31 on Friday. 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 has a fifty-two week low of $18.26 and a fifty-two week high of $23.63. The stock has a market cap of $13.86 billion, a PE ratio of 10.38 and a beta of 0.59. The stock has a fifty day moving average of $20.38 and a 200-day moving average of $20.89.

Ares Capital (NASDAQ:ARCC) last issued its earnings results on Wednesday, February 4th. The investment management company reported $0.50 EPS for the quarter, hitting the consensus estimate of $0.50. The business had revenue of $793.00 million during the quarter, compared to the consensus estimate of $795.20 million. Ares Capital had a return on equity of 9.89% and a net margin of 42.56%.The firm’s revenue was up 4.5% compared to the same quarter last year. During the same quarter last year, the company earned $0.55 EPS. Equities research analysts anticipate that Ares Capital will post 2.19 earnings per share for the current year.

Hedge Funds Weigh In On Ares Capital

Institutional investors have recently modified their holdings of the company. International Assets Investment Management LLC increased its position in Ares Capital by 33.9% during the 3rd quarter. International Assets Investment Management LLC now owns 275,891 shares of the investment management company’s stock valued at $5,557,000 after buying an additional 69,844 shares in the last quarter. Global Retirement Partners LLC grew its stake in shares of Ares Capital by 265.3% in the third quarter. Global Retirement Partners LLC now owns 74,725 shares of the investment management company’s stock worth $1,525,000 after acquiring an additional 54,267 shares during the last quarter. Vise Technologies Inc. purchased a new stake in shares of Ares Capital in the second quarter worth $309,000. Newbridge Financial Services Group Inc. bought a new position in shares of Ares Capital during the second quarter valued at $2,810,000. Finally, Muzinich & Co. Inc. raised its position in shares of Ares Capital by 19.5% in the 3rd quarter. Muzinich & Co. Inc. now owns 1,640,113 shares of the investment management company’s stock worth $33,475,000 after purchasing an additional 267,062 shares during the last quarter. 27.38% of the stock is currently owned by institutional investors.

More Ares Capital News

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

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.