Ares CapitalARCC
ARCC
About: Ares Capital Corp is a United States-based closed-ended specialty finance company. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. The company focuses on investing primarily in first lien senior secured loans (including unitranche loans, which are loans that combine both senior and subordinated debt, generally in a first lien position) and second lien senior secured loans. In addition to senior secured loans, the company also invests in subordinated loans and preferred equity, it also makes common equity investments.
Employees: 3,200
0
Funds holding %
of 7,425 funds
0
Analysts bullish %
of 5 analysts
Fund manager confidence
Based on 2024 Q4 regulatory disclosures by fund managers ($100M+ AUM)
189% more first-time investments, than exits
New positions opened: 130 | Existing positions closed: 45
76% more repeat investments, than reductions
Existing positions increased: 343 | Existing positions reduced: 195
60% more funds holding in top 10
Funds holding in top 10: 10 [Q3] → 16 (+6) [Q4]
34% more capital invested
Capital invested by funds: $3.85B [Q3] → $5.15B (+$1.31B) [Q4]
9% more funds holding
Funds holding: 739 [Q3] → 809 (+70) [Q4]
2.8% more ownership
Funds ownership: 29.66% [Q3] → 32.46% (+2.8%) [Q4]
67% less call options, than puts
Call options by funds: $68.2M | Put options by funds: $204M
Research analyst outlook
5 Wall Street Analysts provided 1 year price targets over the past 3 months
Low target
$21
0%
upside
Avg. target
$22
4%
upside
High target
$23
9%
upside
5 analyst ratings
4 positive
80%
1 neutral
20%
0 negative
0%
RBC Capital Kenneth Lee 36% 1-year accuracy 21 / 59 met price target | 9%upside $23 | Outperform Maintained | 6 May 2025 |
Wells Fargo Finian O'Shea 53% 1-year accuracy 32 / 60 met price target | 0%downside $21 | Overweight Maintained | 30 Apr 2025 |
JP Morgan Melissa Wedel 50% 1-year accuracy 9 / 18 met price target | 4%upside $22 | Overweight Maintained | 24 Apr 2025 |
UBS Doug Harter 0% 1-year accuracy 0 / 1 met price target | 0%downside $21 | Neutral Maintained | 17 Apr 2025 |
Keefe, Bruyette & Woods Paul Johnson 69% 1-year accuracy 11 / 16 met price target | 4%upside $22 | Outperform Maintained | 8 Apr 2025 |
Financial journalist opinion
Based on 49 articles about ARCC published over the past 30 days
Negative
Seeking Alpha
20 hours ago
Dividend Cut Alert: High Yields Getting Risky
Blue-chip high yields are often looked to for stable and attractive passive income and total returns. However, several of these are on increasingly shaky footing right now. I detail why and share some examples in the article.
Positive
Seeking Alpha
1 day ago
Ares Capital: A Top BDC Choice For Income Investors
Ares Capital missed EPS expectations for Q1, but results were nonetheless very robust; ARCC grew its portfolio, and maintained high balance sheet quality, with a low non-accrual percentage. I rated Ares Capital a hold previously, due to its high-yield and high valuation multiplier. Ares Capital's diversified portfolio and first lien strategy, combined with 326% Y/Y growth in net commitments, highlight its growth potential.
Positive
Seeking Alpha
1 day ago
10% Yields Every Retiree Should Own
These 10% yielders combine safety, growth, and big upside potential—perfect for living off dividends in retirement. Both are fully covering their dividends with cash flow and trade at attractive valuations—grab them while they're cheap. We also look at the risks facing each of them.
Negative
Seeking Alpha
1 day ago
Dividend Investors, It's Time To Raise Cash, Here's Why
Despite my usual inclination to invest in dividend-paying stocks, current market valuations and economic risks lead me to prefer raising cash over investing. The 10-year Treasury yield reflects a tug-of-war between inflation and economic weakness, influenced by tariffs and trade uncertainties. The recent U.S.-U.K. trade deal is a positive development, but it doesn't fully offset the higher tariffs still in place post-"Liberation Day."
Negative
Seeking Alpha
1 day ago
Ares Capital: But Less Risk, More Return
The economic outlook is uncertain, with risks from tariffs and potential stagflation impacting high-risk, high-return assets like Ares Capital. ARCC offers a 9% yield but faces limited growth prospects, declining earnings, and higher risk, yet trades at a premium to NAV. Options strategies like buy-writes and selling puts can provide better returns with reduced downside risk, outperforming the 9% yield.
Positive
Seeking Alpha
2 days ago
Ares Capital: Stalwart BDC Keeps Rolling Along With A Solid Q1 Result
Ares Capital delivered a solid 2.1% total NAV return in Q1, trading at a 9.4% dividend yield and a 3% premium to book. Core net investment income dropped to $0.50, with GAAP NII steady at $0.54; dividend coverage fell to 104%, but the dividend remains stable. Portfolio quality remains stable with non-accruals at 0.9% and a diversified portfolio; leverage is low but may rise as lending opportunities increase.
Positive
The Motley Fool
3 days ago
Wall Street Remains Overwhelmingly Bullish About This 9.2%-Yielding Dividend Stock Despite Economic Uncertainty and Volatility
Financial services stocks aren't enjoying the kind of year many thought they would so far in 2025. The prospects of lower interest rates and relaxation of regulations by the Trump administration seemed promising.
Negative
Zacks Investment Research
3 days ago
Ares Capital Misses on Q1 Earnings: Should You Sell or Hold the Stock?
Is ARCC stock worth holding onto amid lower-than-expected first-quarter 2025 results, rising expenses, and tariff-related concerns? Let's find out.
Neutral
Seeking Alpha
3 days ago
Hold Fast To This Amazing 9% Yield: Ares Capital
Stop jumping ship when the seas get rough, hold fast to your massive income stream, and smile at the storms. Novice investors trade due to panic or greed; skilled investors move deliberately. Income investing is a long game, not a rapid dance.
Positive
Seeking Alpha
5 days ago
Build A 12%+ Yield On Cost By 2035 With May's Top 10 High-Yield Picks
In this article, I present 10 attractive high-yield investment options for this month of May 2025, which not only offer dividend income but also potential for dividend growth. The selection process involves analyzing financial ratios, competitive advantages, valuations, and diversification across industries and countries to minimize risks and maximize returns. Highlighted top picks for May 2025 include VICI Properties, Chevron, Canadian Natural Resources, Pfizer, Altria, CVS Health, Toronto-Dominion Bank, Comcast, Vale, and Ares Capital.
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