Wells Fargo & Company Cuts Ares Capital (NASDAQ:ARCC) Price Target to $20.00

Ares Capital (NASDAQ:ARCC) had its price target cut by Wells Fargo & Company from $21.00 to $20.00 in a report released on Thursday,Benzinga reports. They currently have an overweight rating on the investment management company’s stock.

Several other equities research analysts have also issued reports on the stock. Capital One Financial set a $22.50 target price on shares of Ares Capital in a report on Friday, October 10th. Weiss Ratings reissued a “hold (c+)” rating on shares of Ares Capital in a research note on Monday, December 29th. Royal Bank Of Canada dropped their target price on Ares Capital from $24.00 to $23.00 and set an “outperform” rating for the company in a research report on Wednesday, October 29th. Wall Street Zen upgraded Ares Capital from a “sell” rating to a “hold” rating in a report on Sunday, October 19th. Finally, Keefe, Bruyette & Woods decreased their price target on Ares Capital from $23.00 to $22.00 and set an “outperform” rating for the company in a research note on Wednesday, October 29th. Seven investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $22.13.

Ares Capital Price Performance

Shares of Ares Capital stock opened at $19.31 on Thursday. The stock has a market cap of $13.86 billion, a price-to-earnings ratio of 10.38 and a beta of 0.59. The company has a debt-to-equity ratio of 1.12, a quick ratio of 2.20 and a current ratio of 1.70. The stock has a 50 day moving average price of $20.38 and a 200-day moving average price of $20.87. Ares Capital has a one year low of $18.26 and a one year high of $23.63.

Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings results on Wednesday, February 4th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.50. The company 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%.Ares Capital’s revenue was up 4.5% on a year-over-year basis. During the same period last year, the company earned $0.55 earnings per share. Equities analysts expect that Ares Capital will post 2.19 EPS for the current year.

Ares Capital Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th will be given a $0.48 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.9%. Ares Capital’s dividend payout ratio (DPR) is presently 103.23%.

Institutional Investors Weigh In On Ares Capital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ARCC. AQR Capital Management LLC increased its holdings in shares of Ares Capital by 6.5% during the first quarter. AQR Capital Management LLC now owns 16,502 shares of the investment management company’s stock valued at $365,000 after acquiring an additional 1,000 shares in the last quarter. Dynamic Technology Lab Private Ltd purchased a new stake in Ares Capital during the 1st quarter worth approximately $273,000. Goldman Sachs Group Inc. increased its stake in Ares Capital by 14.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,835,007 shares of the investment management company’s stock valued at $62,824,000 after purchasing an additional 358,829 shares in the last quarter. Empowered Funds LLC raised its holdings in shares of Ares Capital by 139.9% in the first quarter. Empowered Funds LLC now owns 27,655 shares of the investment management company’s stock worth $613,000 after buying an additional 16,128 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new stake in shares of Ares Capital during the first quarter worth $14,766,000. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories 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.