B. Riley Has Strong Estimate for Ares Capital Q1 Earnings

Ares Capital Co. (NASDAQ:ARCC) – Investment analysts at B. Riley upped their Q1 2025 EPS estimates for shares of Ares Capital in a note issued to investors on Thursday, October 31st. B. Riley analyst B. Rowe now expects that the investment management company will post earnings of $0.56 per share for the quarter, up from their previous estimate of $0.55. B. Riley has a “Neutral” rating and a $22.00 price objective on the stock. The consensus estimate for Ares Capital’s current full-year earnings is $2.39 per share. B. Riley also issued estimates for Ares Capital’s Q2 2025 earnings at $0.57 EPS, Q3 2025 earnings at $0.58 EPS and FY2025 earnings at $2.27 EPS.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings data on Wednesday, October 30th. The investment management company reported $0.58 earnings per share for the quarter, missing the consensus estimate of $0.59 by ($0.01). Ares Capital had a return on equity of 12.31% and a net margin of 53.71%. The firm had revenue of $755.00 million for the quarter, compared to analysts’ expectations of $770.45 million. During the same quarter in the previous year, the firm posted $0.59 earnings per share. The company’s revenue for the quarter was up 15.3% on a year-over-year basis.

Several other equities analysts have also recently commented on ARCC. UBS Group upgraded shares of Ares Capital to a “hold” rating in a report on Friday, August 23rd. JMP Securities boosted their price target on shares of Ares Capital from $21.00 to $22.00 and gave the company a “market outperform” rating in a report on Tuesday, July 30th. Royal Bank of Canada restated an “outperform” rating and set a $22.00 price target on shares of Ares Capital in a report on Monday, August 5th. Finally, Compass Point raised shares of Ares Capital to a “strong-buy” rating in a research report on Tuesday, July 30th. Three equities research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, Ares Capital currently has an average rating of “Moderate Buy” and an average price target of $21.86.

Ares Capital Trading Down 0.7 %

Ares Capital stock opened at $21.00 on Friday. The company’s fifty day simple moving average is $21.00 and its 200-day simple moving average is $20.94. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.05. Ares Capital has a 12 month low of $19.24 and a 12 month high of $22.05. The stock has a market cap of $13.24 billion, a P/E ratio of 8.08 and a beta of 1.01.

Institutional Investors Weigh In On Ares Capital

A number of hedge funds have recently bought and sold shares of the company. Jamison Private Wealth Management Inc. lifted its stake in Ares Capital by 62.7% during the second quarter. Jamison Private Wealth Management Inc. now owns 1,233 shares of the investment management company’s stock worth $26,000 after purchasing an additional 475 shares during the period. Capital Investment Advisors LLC lifted its stake in Ares Capital by 1.6% during the second quarter. Capital Investment Advisors LLC now owns 32,691 shares of the investment management company’s stock worth $681,000 after purchasing an additional 499 shares during the period. Lewis Asset Management LLC lifted its stake in Ares Capital by 2.1% during the first quarter. Lewis Asset Management LLC now owns 24,805 shares of the investment management company’s stock worth $516,000 after purchasing an additional 500 shares during the period. JBR Co Financial Management Inc lifted its stake in Ares Capital by 1.5% during the third quarter. JBR Co Financial Management Inc now owns 33,047 shares of the investment management company’s stock worth $692,000 after purchasing an additional 500 shares during the period. Finally, Onyx Bridge Wealth Group LLC lifted its stake in Ares Capital by 1.2% during the third quarter. Onyx Bridge Wealth Group LLC now owns 43,609 shares of the investment management company’s stock worth $913,000 after purchasing an additional 531 shares during the period. 27.38% of the stock is currently owned by institutional investors.

Ares Capital Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, December 30th. Shareholders of record on Friday, December 13th will be issued a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a yield of 9.14%. The ex-dividend date is Friday, December 13th. Ares Capital’s dividend payout ratio (DPR) is 73.85%.

About Ares Capital

Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.