Royal Bank Of Canada Issues Pessimistic Forecast for Ares Capital (NASDAQ:ARCC) Stock Price

Ares Capital (NASDAQ:ARCC) had its target price dropped by analysts at Royal Bank Of Canada from $23.00 to $22.00 in a report released on Monday, Marketbeat.com reports. The firm currently has an “outperform” rating on the investment management company’s stock. Royal Bank Of Canada’s target price points to a potential upside of 10.22% from the stock’s previous close.

Several other equities research analysts also recently weighed in on ARCC. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Ares Capital in a research note on Monday, December 29th. Wall Street Zen lowered Ares Capital from a “hold” rating to a “sell” rating in a research report on Saturday. B. Riley Financial reiterated a “buy” rating on shares of Ares Capital in a report on Monday. Citigroup restated a “market outperform” rating on shares of Ares Capital in a report on Thursday, October 30th. Finally, Keefe, Bruyette & Woods lowered their target price on Ares Capital from $23.00 to $22.00 and set an “outperform” rating on the stock in a research report on Wednesday, October 29th. Seven analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, Ares Capital currently has an average rating of “Moderate Buy” and a consensus price target of $22.00.

Ares Capital Trading Up 2.5%

Shares of ARCC stock opened at $19.96 on Monday. Ares Capital has a fifty-two week low of $18.26 and a fifty-two week high of $23.63. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.70 and a current ratio of 1.70. The stock has a 50 day simple moving average of $20.35 and a two-hundred day simple moving average of $20.81. The company has a market cap of $14.33 billion, a P/E ratio of 10.73 and a beta of 0.59.

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

Insiders Place Their Bets

In other news, CEO Michael Kort Schnabel purchased 12,500 shares of the business’s stock in a transaction that occurred on Thursday, February 5th. The shares were acquired at an average cost of $19.13 per share, for a total transaction 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 ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Scott C. Lem acquired 5,186 shares of Ares Capital stock in a transaction on Friday, February 6th. The stock was purchased at an average cost of $19.29 per share, with a total value of $100,037.94. Following the completion of the transaction, the chief financial officer directly owned 39,463 shares in the company, valued at $761,241.27. This represents a 15.13% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 0.48% of the company’s stock.

Hedge Funds Weigh In On Ares Capital

A number of hedge funds and other institutional investors have recently modified their holdings of ARCC. City Holding Co. lifted its holdings in Ares Capital by 444.4% during the third quarter. City Holding Co. now owns 1,225 shares of the investment management company’s stock worth $25,000 after acquiring an additional 1,000 shares during the period. SWAN Capital LLC purchased a new stake in shares of Ares Capital during the 3rd quarter valued at $27,000. Fourth Dimension Wealth LLC bought a new stake in shares of Ares Capital during the 2nd quarter worth $29,000. NBT Bank N A NY bought a new stake in shares of Ares Capital during the 3rd quarter worth $31,000. Finally, Core Wealth Advisors LLC purchased a new position in shares of Ares Capital in the 4th quarter worth about $33,000. Hedge funds and other institutional investors own 27.38% of the company’s stock.

Ares Capital News Roundup

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

• Positive Sentiment: Senior insider buying — CEO Michael Kort Schnabel purchased 12,500 shares (~$19.13 avg) and CFO Scott Lem bought 5,186 shares (~$19.29 avg). Large insider purchases increase confidence that management views the shares as undervalued and likely support the stock’s upward move. Insider Buying Alerts
• Positive Sentiment: Insider filings and SEC disclosures confirm the transactions and show material increases in both executives’ ownership stakes, signaling alignment with shareholders. CEO SEC Filing
• Neutral Sentiment: Dividend support — company declared a $0.48 quarterly dividend (annualized $1.92, ~9.9% yield). High yield attracts income investors but the payout ratio (~103% reported) flags sustainability risk; investors will watch portfolio income and capital preservation metrics. Dividend & Company Overview
• Neutral Sentiment: Selling/short-interest data appears anomalous (report shows 0 shares short and 0 days-to-cover) — likely a reporting error; absent a genuine rise in short interest, this item is unlikely to drive intraday volatility. Traders should monitor updated short-interest reports. Short Interest Note
• Neutral Sentiment: Sector commentary — some analysts warn BDCs face headwinds from falling loan yields and dividend pressure, but multiple write-ups single out ARCC as a higher-quality, more resilient BDC vs. weaker peers; this keeps ARCC in the “defensive” part of the BDC trade for yield-seeking investors. BDC Dividend Risk
• Negative Sentiment: Analyst adjustments — Royal Bank of Canada trimmed its price target from $23 to $22 (keeps an Outperform rating). Price-target trims signal cautiousness on upside and may cap short-term gains despite continued buy ratings from some houses. RBC Price Target Trim

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.