Ares Capital (NASDAQ:ARCC) Stock Rating Lowered by Wall Street Zen

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

Several other analysts also recently commented on the stock. Royal Bank Of Canada lowered their target price 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. Wells Fargo & Company reduced their price objective on shares of Ares Capital from $21.00 to $20.00 and set an “overweight” rating for the company in a research report on Thursday. Capital One Financial set a $22.50 price objective on shares of Ares Capital in a research note on Friday, October 10th. Weiss Ratings reissued a “hold (c+)” rating on shares of Ares Capital in a research report on Monday, December 29th. Finally, Citigroup restated a “market outperform” rating on shares of Ares Capital in a research note on Thursday, October 30th. Seven analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $22.13.

Ares Capital Stock Up 2.8%

ARCC stock opened at $19.31 on Friday. The firm has a market capitalization of $13.86 billion, a PE ratio of 10.38 and a beta of 0.59. The company has a quick ratio of 2.20, a current ratio of 1.70 and a debt-to-equity ratio of 1.12. Ares Capital has a twelve month low of $18.26 and a twelve month high of $23.63. The stock’s 50 day moving average is $20.38 and its 200-day moving average is $20.89.

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

Institutional Trading of Ares Capital

A number of large investors have recently bought and sold shares of ARCC. UBS Group AG grew its stake in shares of Ares Capital by 41.8% during the 4th quarter. UBS Group AG now owns 11,201,905 shares of the investment management company’s stock worth $226,615,000 after acquiring an additional 3,301,890 shares during the period. Bank of America Corp DE lifted its holdings in Ares Capital by 8.9% during the second quarter. Bank of America Corp DE now owns 8,678,129 shares of the investment management company’s stock valued at $190,572,000 after purchasing an additional 705,882 shares during the last quarter. JPMorgan Chase & Co. boosted its position in Ares Capital by 18.6% during the second quarter. JPMorgan Chase & Co. now owns 6,404,876 shares of the investment management company’s stock worth $140,651,000 after purchasing an additional 1,006,460 shares during the period. Legal & General Group Plc increased its stake in shares of Ares Capital by 5.4% in the second quarter. Legal & General Group Plc now owns 4,955,567 shares of the investment management company’s stock worth $108,799,000 after purchasing an additional 252,947 shares in the last quarter. Finally, Ameriprise Financial Inc. raised its position in shares of Ares Capital by 6.3% in the second quarter. Ameriprise Financial Inc. now owns 3,794,378 shares of the investment management company’s stock valued at $83,353,000 after purchasing an additional 225,984 shares during the period. 27.38% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Ares Capital

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.