Dernières nouvelles pour Ares Capital (NASDAQ:ARCC) Stock

ARES CAPITAL CORP

Ares Capital

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.

Ares Capital Corporation - Closed End Fund

Ares Capital Corp

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Janus Henderson Group plc Ordinary Shares

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PowerShares Exchange Traded Fund Trust Dynamic Mid Cap Value Portfolio

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SHF Holdings, Inc. - Class A Common Stock

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Shares of companies within the broader financial sector are higher after the US and China agreed to a temporary reduction in most tariffs on each other's goods.

Ares Capital's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARCC#NYSE">ARCC</a>) short percent of float has risen 20.18% since its last report. The company recently reported that it has 18.68 million shares sold short, which is 2.74% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.99 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">List of the most shorted stocks</a>
<h3>Ares Capital Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1746727219_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Ares Capital has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Ares Capital's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://www.benzinga.com/pro/">Benzinga Pro</a>, Ares Capital's peer group average for short interest as a percentage of float is 3.72%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Trading Ideas

What Does the Market Think About Ares Capital?

RBC Capital analyst Kenneth Lee maintains Ares Capital (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCC#NASDAQ">ARCC</a>) with a Outperform and lowers the price target from $24 to $23.

News

Price Target

Analyst Ratings

RBC Capital Maintains Outperform on Ares Capital, Lowers Price Target to $23

Investors are turning to dividend stocks to guard their portfolios against market volatility amid trade wars and recession risks. Data from <a href="https://www.spglobal.com/spdji/en/documents/research/research-sp500-dividend-aristocrats.pdf">S&amp;P Global </a>shows that from Dec. 29, 1989, through the end of February, the S&amp;P 500 Dividend Aristocrats outperformed the S&amp;P 500 in 66.67% of the months when the broader index posted a loss.
A few days ago, a dividend investor <a href="https://www.reddit.com/r/dividends/comments/1jxqcdg/finally_reached_1m_4km_income_update_on_the_story/">shared</a> his income report and investing journey on r/Dividends, a Reddit community with over 700,000 followers. The portfolio screenshots shared by the investor on the social platform showed his monthly dividend income was roughly $3,960. The investor, around 40, said he started investing at the age of 20.
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<li>Can you guess how many retire with a $5,000,000 nest egg? <a href="https://www.benzinga.com/money/5mil-nest-egg-adv">The percentage may shock you</a>.</li>
</ul>
&nbsp;"At the time I never took it seriously and just putting in like 20-50$ a month," he said. "I ‘seriously' started at around 23-24 when I was putting in approx, 300$ on average (that was a huge for me back then), and now averaging at around 2-2.5k per month."
The investor said while it's difficult to see his portfolio suffering declines amid the current market environment, he's playing the "long game" and believes stocks will eventually go in a positive territory.&nbsp;
The investor said he's never been a "big spender" and has expenses of about €700 a month. He lives in Europe where cost of living is not "that high," he wrote.
"Other than that we have two old cars (20 and 15 years) &#8211; included in above expenses. We don't wear fancy clothes or spend money on impressing others (this can cost you a fortune)," he added.&nbsp;
Trending: It&#8217;s no wonder Jeff Bezos holds over $250 million in art — <a href="https://www.benzinga.com/money/masterworks">this alternative asset has outpaced the S&amp;P 500 since 1995, delivering an average annual return of 11.4%. Here&#8217;s how everyday investors are getting started.</a>
Let's take a look at some of the key dividend stocks in his portfolio.
Schwab U.S. Dividend Equity ETF&nbsp;
Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) tracks the Dow Jones U.S. Dividend 100 Index and provides exposure to some of the top dividend stocks trading in the U.S., including Verizon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), Coca-Cola (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>), ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>), Lockheed Martin (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) and Chevron (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>).&nbsp;
JPMorgan Equity Premium Income ETF&nbsp;
JPMorgan Equity Premium Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEPI#NYSE">JEPI</a>) makes money by investing in some of the most notable large-cap U.S. stocks and selling call options.&nbsp;
Ares Capital&nbsp;
Ares Capital (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCC#NASDAQ">ARCC</a>), a business development company, was one of the top stocks in the investor&#8217;s portfolio. He earned $1,920 in annual dividends from the stock.
Public Storage&nbsp;
Public Storage (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSA#NYSE">PSA</a>) is a California-based REIT that operates self-storage facilities. The stock has a dividend yield of 4.1%. BofA Securities recently <a href="https://seekingalpha.com/news/4433284-public-storage-extra-space-storage-upgraded-on-positive-self-storage-reits-sector-view">upgraded</a> the stock to Buy from Neutral and raised its price target to $368 from $349.
See Also: Hasbro, MGM, and Skechers trust this AI marketing firm — <a href="https://www.benzinga.com/money/rad-intel">invest pre-IPO from $0.60 per share now</a>.
SPDR S&amp;P 500 ETF Trust&nbsp;
With a 1.2% dividend yield, SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) provides investors exposure to the broader US market. The investor made $1,218 in annual dividends from his investment in the fund.&nbsp;
Altria Group
Altria Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MO#NYSE">MO</a>) has a dividend yield of about 7%. The tobacco giant accounted for about $800 in annual dividend income for the investor, according to the screenshots he shared on the social media platform.&nbsp;
PepsiCo Inc
Beverage giant Pepsi (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) has <a href="https://www.google.com/search?q=pepsi+dividend+increase+consecuitve+years&amp;oq=pepsi+dividend+increase+consecuitve+years&amp;gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIJCAEQIRgKGKABMgkIAhAhGAoYoAEyCQgDECEYChigATIJCAQQIRgKGKABMgcIBRAhGI8CMgcIBhAhGI8C0gEINTgxN2owajeoAgCwAgA&amp;sourceid=chrome&amp;ie=UTF-8">increased</a> its dividends for over 50 consecutive years. The company recently reported first-quarter earnings that missed Wall Street estimates while revenue beat expectations. The stock yields 4%.&nbsp;
Johnson &amp; Johnson
Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) is one of the most reliable dividend stocks, having raised its payouts for 63 <a href="https://www.investor.jnj.com/news/news-details/2025/Johnson--Johnson-Announces-63rd-Consecutive-Year-of-Dividend-Increase-Raises-Quarterly-Dividend-by-4-8/default.aspx">consecutive</a> years. The stock is up 8% so far this year. The company recently <a href="https://seekingalpha.com/news/4431340-johnson-johnson-projects-400m-tariff-impact">flagged</a> a $400 million hit related to President Donald Trump's tariffs.
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<li><a href="https://www.benzinga.com/money/gbr-savings-by-age">If You're Age 35, 50, or 60: Here&#8217;s How Much You Should Have Saved Vs. Invested By Now</a></li>
<li>Inspired by Uber and Airbnb &#8211; Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets &#8211; <a href="https://www.benzinga.com/money/mode-mobile-2">with $1,000 you can invest at just $0.26/share!</a></li>
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Image: Shutterstock

Personal Finance

JEPI

SCHD

40-Year-Old Making $4K a Month in Dividends Reveals His Top 8 Stocks — 'We Don't Wear Fancy Clothes or Spend Money on Impressing Others'

Wells Fargo analyst Finian O'Shea maintains Ares Capital (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCC#NASDAQ">ARCC</a>) with a Overweight and lowers the price target from $22 to $21.

Wells Fargo Maintains Overweight on Ares Capital, Lowers Price Target to $21

Ares Capital shares are trading lower after the company reported worse-than-expected Q1 financial results.

Ares Capital (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCC#NASDAQ">ARCC</a>) reported quarterly earnings of $0.50 per share which missed the analyst consensus estimate of $0.54 by 7.41 percent. This is a 15.25 percent decrease over earnings of $0.59 per share from the same period last year. The company reported quarterly sales of $732.00 million which missed the analyst consensus estimate of $777.10 million by 5.80 percent. This is a 4.42 percent increase over sales of $701.00 million the same period last year.

Earnings

Earnings Misses

Ares Capital Q1 Adj. EPS $0.50 Misses $0.54 Estimate, Sales $732.00M Miss $777.10M Estimate

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Earnings Scheduled For April 29, 2025

Ares Capital (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCC#NASDAQ">ARCC</a>) is preparing to release its quarterly earnings on Tuesday, 2025-04-29. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Ares Capital to report an earnings per share (EPS) of $0.54.
The market awaits Ares Capital's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
<h3>Historical Earnings Performance</h3>
In the previous earnings release, the company missed EPS by $0.03, leading to a 1.6% drop in the share price the following trading session.
Here's a look at Ares Capital's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q4 2024</th>
<th>Q3 2024</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.58</td>
<td>0.59</td>
<td>0.58</td>
<td>0.60</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.55</td>
<td>0.58</td>
<td>0.61</td>
<td>0.59</td>
</tr>
<tr>
<td>Price Change %</td>
<td>-2.0%</td>
<td>-1.0%</td>
<td>-2.0%</td>
<td>-1.0%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2025/1745856160_0.png" alt="eps graph" />
<h3>Stock Performance</h3>
Shares of Ares Capital were trading at $21.11 as of April 25. Over the last 52-week period, shares are up 2.64%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release. 
<h3>Analyst Views on Ares Capital</h3>
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Ares Capital.
Ares Capital has received a total of 9 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $22.83, the consensus suggests a potential 8.15% upside.
<h3>Peer Ratings Comparison</h3>
In this analysis, we delve into the analyst ratings and average 1-year price targets of Franklin Resources, SEI Investments and T. Rowe Price Group, three key industry players, offering insights into their relative performance expectations and market positioning.
<ul>
<li>Analysts currently favor an Neutral trajectory for Franklin Resources, with an average 1-year price target of $19.62, suggesting a potential 7.06% downside.</li>
<li>Analysts currently favor an Neutral trajectory for SEI Investments, with an average 1-year price target of $83.25, suggesting a potential 294.36% upside.</li>
<li>Analysts currently favor an Neutral trajectory for T. Rowe Price Group, with an average 1-year price target of $96.14, suggesting a potential 355.42% upside.</li>
</ul>
<h3>Peers Comparative Analysis Summary</h3>
The peer analysis summary offers a detailed examination of key metrics for Franklin Resources, SEI Investments and T. Rowe Price Group, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

<table>
<thead>
<tr>
<th>Company</th>
<th>Consensus</th>
<th>Revenue Growth</th>
<th>Gross Profit</th>
<th>Return on Equity</th>
</tr>
</thead>
<tbody>
<tr>
<td>Blue Owl Capital</td>
<td>Outperform</td>
<td>27.80%</td>
<td>$336.88M</td>
<td>1.00%</td>
</tr>
<tr>
<td>Franklin Resources</td>
<td>Neutral</td>
<td>13.08%</td>
<td>$1.83B</td>
<td>1.19%</td>
</tr>
<tr>
<td>SEI Investments</td>
<td>Neutral</td>
<td>-1.05%</td>
<td>$297.69M</td>
<td>6.72%</td>
</tr>
<tr>
<td>T. Rowe Price Group</td>
<td>Neutral</td>
<td>11.11%</td>
<td>$947.60M</td>
<td>4.16%</td>
</tr>
</tbody>
</table>

Key Takeaway:
Ares Capital ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.
<h3>Discovering Ares Capital: A Closer Look</h3>
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.
<h3>Key Indicators: Ares Capital's Financial Health</h3>
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Ares Capital's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -11.49%. This indicates a decrease in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 90.84%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Ares Capital's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.73%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Ares Capital's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.29%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Ares Capital's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.03.
<a href="https://www.benzinga.com/quote/ARCC/earnings">To track all earnings releases for Ares Capital visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Uncovering Potential: Ares Capital's Earnings Preview

Wells Fargo analyst Finian O'Shea maintains Ares Capital (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCC#NASDAQ">ARCC</a>) with a Overweight and lowers the price target from $23 to $22.

Wells Fargo Maintains Overweight on Ares Capital, Lowers Price Target to $22

In the preceding three months, 8 analysts have released ratings for Ares Capital (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCC#NASDAQ">ARCC</a>), presenting a wide array of perspectives from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">0</td>
<td align="right">7</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">5</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $22.94, a high estimate of $24.50, and a low estimate of $21.00. Experiencing a 0.52% decline, the current average is now lower than the previous average price target of $23.06. 
<img src="https://www.benzinga.com/files/images/story/2025/1745532052_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
A comprehensive examination of how financial experts perceive Ares Capital is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
&#x7C; Analyst &#x7C; Analyst Firm &#x7C; Action Taken &#x7C; Rating &#x7C;Current Price Target&#x7C; Prior Price Target &#x7C; 
&#x7C;--------------------&#x7C;-----------------------&#x7C;---------------&#x7C;---------------&#x7C;--------------------&#x7C;--------------------&#x7C; 
&#x7C;Melissa Wedel &#x7C;JP Morgan &#x7C;Lowers &#x7C;Overweight &#x7C; $22.00&#x7C;$24.50 &#x7C; 
&#x7C;Doug Harter &#x7C;UBS &#x7C;Lowers &#x7C;Neutral &#x7C; $21.00&#x7C;$22.00 &#x7C; 
&#x7C;Paul Johnson &#x7C;Keefe, Bruyette &amp; Woods&#x7C;Lowers &#x7C;Outperform &#x7C; $22.00&#x7C;$23.00 &#x7C; 
&#x7C;Kenneth Lee &#x7C;RBC Capital &#x7C;Raises &#x7C;Outperform &#x7C; $24.00&#x7C;$23.00 &#x7C; 
&#x7C;Paul Johnson &#x7C;Keefe, Bruyette &amp; Woods&#x7C;Raises &#x7C;Outperform &#x7C; $23.00&#x7C;$22.00 &#x7C; 
&#x7C;Finian O'Shea &#x7C;Wells Fargo &#x7C;Lowers &#x7C;Overweight &#x7C; $23.00&#x7C;$24.00 &#x7C; 
&#x7C;Melissa Wedel &#x7C;JP Morgan &#x7C;Raises &#x7C;Overweight &#x7C; $24.50&#x7C;$23.00 &#x7C; 
&#x7C;Timothy O'Shea &#x7C;Wells Fargo &#x7C;Raises &#x7C;Overweight &#x7C; $24.00&#x7C;$23.00 &#x7C;
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Ares Capital. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Ares Capital compared to the broader market.</li>
<li>Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Ares Capital's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.</li>
</ul>
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Ares Capital's market standing. Stay informed and make well-considered decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/ARCC/analyst-ratings?adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Stay up to date on Ares Capital analyst ratings.</a>
<h2>Delving into Ares Capital's Background</h2>
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.
<h3>Ares Capital: Financial Performance Dissected</h3>
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Decline in Revenue: Over the 3M period, Ares Capital faced challenges, resulting in a decline of approximately -11.49% in revenue growth as of 31 December, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.
Net Margin: Ares Capital's net margin is impressive, surpassing industry averages. With a net margin of 90.84%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Ares Capital's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.73%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Ares Capital's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.29%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.03.
<h2>Analyst Ratings: Simplified</h2>
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Where Ares Capital Stands With Analysts

JP Morgan analyst Melissa Wedel maintains Ares Capital (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCC#NASDAQ">ARCC</a>) with a Overweight and lowers the price target from $24.5 to $22.

JP Morgan Maintains Overweight on Ares Capital, Lowers Price Target to $22

In today's unpredictable market, investors seeking high yields need to balance risk and reward carefully. With rising volatility, inflation concerns, and fluctuating interest rates, a well-diversified portfolio is crucial to sustaining durable income.
For income-focused <a href="https://in.benzinga.com/news/25/04/44709542/investors-just-poured-3m-into-this-whatsapp-job-app-for-hispanic-immigrants-and-its-already-helping-800-find-work">investors</a>, especially those nearing, or in retirement, capital preservation and <a href="https://www.benzinga.com/markets/25/02/43897884/dividend-investor-making-5-000-per-month-with-632-000-reveals-portfolio-it-takes-time-but-its-doable">dividend</a> sustainability are just as important as yield. A mix of low-volatility assets, tax-efficient strategies, and recession-resistant sectors can help counter market turbulence while delivering consistent cash flow.
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Reddit has witnessed this balance struggle in a post an investor has created. The 50-year-old poster has spent years building a high-yield portfolio in a brokerage account, but now his main goal is reliable monthly income without sacrificing the principal.
The investor is open to various asset classes such as stocks, bonds, real estate investment trusts, closed-end funds, and/or business development companies but wants to avoid yield traps and foreign stocks due to tax complications.
&#8220;I need durable income. [Ford Motor Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/f#NYSE">F</a>)] is a no, it's a yield trap and has been for years. [Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schd#NYSE">SCHD</a>)] and [Schwab U.S. REIT ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schh#NYSE">SCHH</a>)] are great funds, but the yield is too low. I own SCHD in my growth portfolio but continue to sell some every year as I convert to income. Also want to diversify away from options. They are great for income but tend to fluctuate as supply/demand does in down markets,&#8221; he said.
His questions to Reddit investors are what high-yield – over 8% – stocks, ETFs, or funds can sustain payouts long-term, whether there are low-risk business development companies or closed-end funds that won't cut dividends in a downturn, and how can he further diversify beyond his current holdings.
Trending: The secret weapon in billionaire investor portfolios that you almost certainly don't own yet. <a href="https://www.benzinga.com/money/masterworks">See which asset class has outpaced the S&amp;P 500 (1995-2024) – and with near-zero correlation.</a>
Redditors have offered a mix of ETF recommendations, individual stock picks, and broader portfolio strategies, so let&#8217;s dive into those.
<h2 class="wp-block-heading">Investor Seeks 8% or More High-Yield Holdings For Durable Income – Reddit Suggests Assets</h2>
Focus on High-Quality BDCs and CEFs for Steady Income
Several commenters recommended business development companies and closed-end funds as core holdings for high, sustainable yields.
&#8220;Two closed-end funds that I like a lot are [Eaton Vance Enhanced Equity Income Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eoi#NYSE">EOI</a>)] and [Eaton Vance Enhanced Equity Income Fund II (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eos#NYSE">EOS</a>)]. They have been around since 2005, have mostly favorable tax treatment on their distributions, and have had better total returns than [JPMorgan Equity Premium Income ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jepi#NYSE">JEPI</a>)​] and [JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jepq#NASDAQ">JEPQ</a>)​],&#8221; a commenter suggested.
Without adding anything else, this Redditor shared several assets for the investor to research: &#8220;[Ares Capital Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/arcc#NASDAQ">ARCC</a>)], [Blue Owl Capital Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/obdc#NYSE">OBDC</a>)], [Blackstone Secured Lending Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bxsl#NYSE">BXSL</a>)], [Capital Southwest Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cswc#NASDAQ">CSWC</a>)], [Hercules Capital (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/htgc#NYSE">HTGC</a>)], [Barings BDC (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bbdc#NYSE">BBDC</a>)], [Bain Capital Specialty Finance (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bcsf#NYSE">BCSF</a>)], [Fidus Investment Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fdus#NASDAQ">FDUS</a>)], [Carlyle Secured Lending (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cgbd#NASDAQ">CGBD</a>)], [Sixth Street Specialty Lending (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tslx#NYSE">TSLX</a>)].&#8221;
&#8220;On the same boat (53 years old). Started late but trying to catch up with high-yield stocks. My stocks are: [Ares Capital Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/arcc#NASDAQ">ARCC</a>)], [Main Street Capital Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/main#NYSE">MAIN</a>)​], OBDC, HTGC, [Realty Income Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/o#NYSE">O</a>)], [VICI Properties (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vici#NYSE">VICI</a>)], [Altria Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mo#NYSE">MO</a>)], and [British American Tobacco (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bti#NYSE">BTI</a>)]. The last two are the best performers so far,&#8221; a Reddit user wrote.
See Also: Hasbro, MGM, and Skechers trust this AI marketing firm — <a href="https://www.benzinga.com/money/rad-intel">invest pre-IPO from $0.60 per share now</a>.
Consider Covered-Call ETFs for Tax-Efficient Monthly Income
Given the poster&#8217;s preference for tax-efficient income, several commenters highlighted covered-call ETFs as strong options.
&#8220;[Invesco KBW Premium Yield Equity REIT ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/kbwy#NASDAQ">KBWY</a>)], [VanEck Mortgage REIT Income ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mort#NYSE">MORT</a>)], [NEOS Nasdaq-100 High Income ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqqi#NASDAQ">QQQI</a>)], JEPQ, [Goldman Sachs Nasdaq-100 Core Premium Income ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gpiq#NYSE">GPIQ</a>)], [NEOS S&amp;P 500 High Income ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spyi#NYSE">SPYI</a>)], JEPI, [Goldman Sachs S&amp;P 500 Core Premium Income ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/gpix#NASDAQ">GPIX</a>)], and [NEOS Russell 2000 High Income ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/iwmi#NASDAQ">IWMI</a>)] are a few. They will probably stay lower during the current volatile cycle, but should do well long term I would think,&#8221; a commenter recommended.
A user mentioned a real estate investment trust option, noting that it pays around 9.5% yield and has a 0.50% expense ratio.
&#8220;Aside from the covered call funds like JEPQ, QQQI, [TappAlpha SPY Growth &amp; Daily Income ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tspy#NASDAQ">TSPY</a>)], and the like, there&#8217;s a [real estate investment trust] ETF from Hoya Capital called [Hoya Capital High Dividend Yield ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/riet#NYSE">RIET</a>)] with a 0.50% expense ratio that pays about a 9.5% yield and seems pretty steady.&#8221;
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Image: Shutterstock

Small Cap

BBDC

BCSF

BXSL

CGBD

CSWC

FDUS

GPIQ

GPIX

HTGC

NEOS ETF Trust NEOS Russell 2000 High Income ETF

IWMI

JEPQ

Powershares Kbw Premium Yield Equity Reit Portfolio

KBWY

MAIN

MORT

QQQI

RIET

SCHH

SPYI

TSLX

TSPY

VICI

50-Year-Old Investor Craves 8%+ Yield, Snubs Ford, Chases Durable Dividends – 'I Am Willing To Consider Anything' For Monthly Income

Ares Capital's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARCC#NYSE">ARCC</a>) short percent of float has fallen 8.43% since its last report. The company recently reported that it has 15.54 million shares sold short, which is 2.28% of all regular shares that are available for trading. Based on its trading volume, it would take traders 3.48 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">List of the most shorted stocks</a>
<h3>Ares Capital Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1745251223_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Ares Capital has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Ares Capital's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://www.benzinga.com/pro/">Benzinga Pro</a>, Ares Capital's peer group average for short interest as a percentage of float is 3.59%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Is Ares Capital Gaining or Losing Market Support?

Building wealth through <a href="https://www.benzinga.com/personal-finance/25/04/44804226/can-you-live-off-dividends-investor-pulls-500-month-from-178k-portfolio-i-feel-more-comfortable-this-way-with-these-6-stock-picks">dividends</a> isn&#8217;t an overnight success, but rather work that requires relentless discipline, patience, consistency, and the power of compounding. While many chase quick gains, the real magic happens when investors commit to a long-term <a href="https://www.benzinga.com/news/25/02/43901059/ray-dalios-holy-grail-investment-strategy-why-10-15-diversified-investments-could-make-you-a-fortune">strategy</a>, reinvesting dividends and steadily growing their portfolios over decades.
One investor&#8217;s recent milestone proves just that: a $1 million portfolio generating $4,000 a month in passive income, all starting from humble beginnings of just $50 a month.
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The investor, who is nearly 40 years old, shared on Reddit that he began his journey at 20 but only started taking investing seriously in his mid-20s. His early contributions were modest, around $20 to $50 a month, but over time, he increased his monthly investments to an average of $300, and now invests approximately $2,000 to $2,500 monthly.
Despite market volatility, he said he&#8217;s focused on the long game: &#8220;It's hard to see my portfolio plummeting, but I then remember myself I'm playing a long game. I'm not in a hurry, the administration will change and markets will become green eventually. They did in the past every single time.&#8221;
The investor's portfolio consists of a mix of ETFs, real estate investment trusts, and blue-chip dividend stocks. Let&#8217;s take a closer look at each holding, why investors favor them, and their current dividend yields.
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<h2 class="wp-block-heading">A $1 Million Portfolio Generating $4,000 a Month Dividend Income–Redditor Shares Top Holdings</h2>
Schwab U.S. Dividend Equity ETF
Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) is a fan favorite among dividend investors because it tracks a high-quality index of U.S. companies with strong, consistent dividend payouts. It focuses on companies with solid fundamentals like high return on equity, low debt, and consistent growth. SCHD pays investors around 4.05% in dividend yield annually.
JPMorgan Equity Premium Income ETF
JPMorgan Equity Premium Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEPI#NYSE">JEPI</a>)​ offers an attractive yield by combining blue-chip U.S. equities with an options overlay strategy that generates extra income. It's especially loved by retirees and income seekers who want stability and high cash flow without taking massive risks. JEPI generates around 7.88% in annual dividend yield.
Realty Income Corporation
Realty Income Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/O#NYSE">O</a>) is a real estate investment trust that owns commercial real estate leased to big, stable tenants like Walgreens and FedEx. It has a legendary track record of paying monthly dividends for over 25 years straight. O is beloved by income investors for its predictability and real estate-backed stability and pays approximately 5,68% in dividends per year.
Ares Capital Corporation
Ares Capital Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCC#NASDAQ">ARCC</a>) is a business development company that lends to and invests in middle-market companies, earning high interest in return. Investors love ARCC for its high yield and consistent income, even if it comes with slightly higher risk. ARCC generates around 9,49% in dividends per year.
Public Storage
Public Storage (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSA#NYSE">PSA</a>) is the king of the self-storage real estate investment trusts, operating thousands of storage facilities across the U.S. PSA it's a favorite among long-term real estate investors because of its stable cash flow, low overhead, and high margins. The company pays investors approximately 4,13% in dividend income annually.
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SPDR S&amp;P 500 ETF Trust
SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) is the original S&amp;P 500 ETF, offering diversification across 500 of the biggest U.S. companies. It's not known for high yield, but investors hold it for long-term growth and market exposure. SPY generates approximately 1.33% in annual dividend yield.
Altria Group
Altria Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MO#NYSE">MO</a>) offers a sky-high yield and stable cash flow from its tobacco empire. Despite regulatory headwinds, it continues to generate enormous profits and share them with investors. Some also speculate on growth via its cannabis and nicotine-alternative investments. MO pays 7,06% in dividend income per year.
PepsiCo
PepsiCo (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) owns massive snack brands like Doritos, Quaker, and Lay's. Its diversified business model makes it recession-resistant, and it's a dividend aristocrat with over 50 years of dividend growth. Investors love its global reach, brand strength, and reliable, growing dividend payouts, which are now around 3,76% per year.
Johnson &amp; Johnson
Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) is a healthcare titan with business lines in pharmaceuticals, medical devices, and consumer health products. It has one of the longest dividend growth streaks and is considered ultra-defensive. JNJ is a go-to for investors wanting both stability and a safe, growing income stream through dividends, which now sit at around 3.14% per year.
Verizon Communications
Verizon Communications (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) provides essential telecom services, with a massive nationwide infrastructure and millions of customers. While growth is slow, its cash flows are enormous, and it pays a very generous dividend. VZ pays investors around 6,08% in dividends.
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From $50 A Month To $1M Portfolio — Investor Shares Top 10 Holdings, Says 'Finally Reached $1M!' Thanks To Relentless Discipline

UBS analyst Doug Harter maintains Ares Capital (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCC#NASDAQ">ARCC</a>) with a Neutral and lowers the price target from $22 to $21.

UBS Maintains Neutral on Ares Capital, Lowers Price Target to $21

Dividend stocks are gaining attention as investors crave certainty and downsize protection following market volatility triggered by President Donald Trump's tariff announcement on April 2. Dividend stocks have proven their resilience in the past. The S&amp;P 500 High Dividend Index outperformed the S&amp;P 500 in the dot-com bubble and COVID-19 market crash, according to an <a href="https://www.spglobal.com/spdji/en/documents/education/education-the-importance-of-dividends.pdf">S&amp;P Global</a> research report.
Earlier this month, a dividend investor <a href="https://www.reddit.com/r/dividends/comments/1jqucki/account_update_6000month/">shared</a> his portfolio and income details on r/Dividends — a Reddit discussion board with over 700,000 followers. The portfolio screenshots shared by the investor on the social platform showed his monthly dividend income stood at $6,027.
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The investor said he had been waiting to buy stocks on a pullback, and his chance finally came following the recent market selloff.
"What a bloody day today but it did hit the price target I have been waiting for. Now that I reached $6,000, now I am going to use this money to start buying more VOO and discounted tech stocks like Google, Amazon Microsoft, Broadcom, etc."
The investor said dividend investing is not a "get rich quick" scheme and it took him 20 years to reach this income milestone. He urged investors to "keep grinding until we don't have to."
"As long as you are consistent with your investment, you will also get there," he added.
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The investor's portfolio had a total worth of about $1.1 million. Let's take a look at some of his biggest holdings.
Enterprise Products Partners
Number of Shares: 5,357
Enterprise Products Partners LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EPD#NYSE">EPD</a>) was the biggest holding of the investor, accounting for about 16% of his total portfolio. He had 5,357 shares of the energy company, according to the portfolio screenshots he shared on Reddit. The stock has a dividend yield of over 7%.
JPMorgan Equity Premium Income ETF&nbsp;
Number of Shares: 2,648
The Redditor earning $6,000 a month in dividends had a $146,000 stake in JPMorgan Equity Premium Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEPI#NYSE">JEPI</a>). The fund invests in some of the most notable large-cap U.S. stocks and generates income by selling call options.&nbsp; Visa (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>), Mastercard (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MA#NYSE">MA</a>), Southern Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SO#NYSE">SO</a>) and Progressive Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PGR#NYSE">PGR</a>) are among the fund's top holdings.
Ares Capital
Number of Shares: 2,501
Ares Capital (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCC#NASDAQ">ARCC</a>) a business development company, was one of the top stocks in the investor&#8217;s portfolio. The stock has a dividend yield of over 9%.
Blackstone Secured Lending
Number of Shares: 2,501
Blackstone Secured Lending (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BXSL#NYSE">BXSL</a>) is a business development company mainly investing in private U.S. companies&#8217; first-lien senior secured debt. The company has a dividend yield of about 11%. The stock is down 14% so far this year.
See Also: Hasbro, MGM, and Skechers trust this AI marketing firm — <a href="https://www.benzinga.com/money/rad-intel">invest pre-IPO from $0.60 per share now</a>.
Realty Income
Number of Shares: 850
Realty Income (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/O#NYSE">O</a>) is one of the most popular monthly dividend stocks among Redditors. The REIT has a dividend yield of 5.8%. Last month, Realty Income raised its dividend by 0.2%.&nbsp;
Medical Properties
Number of Shares: 6,769
Medical Properties (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPW#NYSE">MPW</a>) is an Alabama-based REIT focused on hospital facilities. It has a dividend yield of about 6%. The investor had 6,769 shares of the company in his portfolio. The stock is up 32% over the past year.
Enbridge
Number of Shares: 761
Canadian energy infrastructure company Enbridge Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ENB#NYSE">ENB</a>) has a dividend yield of 6.2%. The company has consistently <a href="https://www.enbridge.com/media-center/news/details?id=123836&amp;lang=en">raised</a> its dividends for about three decades now.
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Number of Shares: 662
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Across the recent three months, 6 analysts have shared their insights on Ares Capital (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCC#NASDAQ">ARCC</a>), expressing a variety of opinions spanning from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">0</td>
<td align="right">6</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts have recently evaluated Ares Capital and provided 12-month price targets. The average target is $23.42, accompanied by a high estimate of $24.50 and a low estimate of $22.00. Observing a 1.83% increase, the current average has risen from the previous average price target of $23.00. 
<img src="https://www.benzinga.com/files/images/story/2025/1744142441_0.png" alt="price target chart" />
<h2>Analyzing Analyst Ratings: A Detailed Breakdown</h2>
The analysis of recent analyst actions sheds light on the perception of Ares Capital by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
&#x7C; Analyst &#x7C; Analyst Firm &#x7C; Action Taken &#x7C; Rating &#x7C;Current Price Target&#x7C; Prior Price Target &#x7C; 
&#x7C;--------------------&#x7C;-----------------------&#x7C;---------------&#x7C;---------------&#x7C;--------------------&#x7C;--------------------&#x7C; 
&#x7C;Paul Johnson &#x7C;Keefe, Bruyette &amp; Woods&#x7C;Lowers &#x7C;Outperform &#x7C; $22.00&#x7C;$23.00 &#x7C; 
&#x7C;Kenneth Lee &#x7C;RBC Capital &#x7C;Raises &#x7C;Outperform &#x7C; $24.00&#x7C;$23.00 &#x7C; 
&#x7C;Paul Johnson &#x7C;Keefe, Bruyette &amp; Woods&#x7C;Raises &#x7C;Outperform &#x7C; $23.00&#x7C;$22.00 &#x7C; 
&#x7C;Finian O'Shea &#x7C;Wells Fargo &#x7C;Lowers &#x7C;Overweight &#x7C; $23.00&#x7C;$24.00 &#x7C; 
&#x7C;Melissa Wedel &#x7C;JP Morgan &#x7C;Raises &#x7C;Overweight &#x7C; $24.50&#x7C;$23.00 &#x7C; 
&#x7C;Timothy O'Shea &#x7C;Wells Fargo &#x7C;Raises &#x7C;Overweight &#x7C; $24.00&#x7C;$23.00 &#x7C;
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Ares Capital. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Ares Capital compared to the broader market.</li>
<li>Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Ares Capital's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.</li>
</ul>
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Ares Capital's market standing. Stay informed and make well-considered decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/ARCC/analyst-ratings?adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Stay up to date on Ares Capital analyst ratings.</a>
<h2>Unveiling the Story Behind Ares Capital</h2>
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.
<h3>Ares Capital: Financial Performance Dissected</h3>
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Growth: Ares Capital's revenue growth over a period of 3M has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -11.49%. This indicates a decrease in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Ares Capital's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 90.84%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Ares Capital's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.73%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.29%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Ares Capital's debt-to-equity ratio is below the industry average at 1.03, reflecting a lower dependency on debt financing and a more conservative financial approach.
<h2>Analyst Ratings: What Are They?</h2>
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

Deep Dive Into Ares Capital Stock: Analyst Perspectives (6 Ratings)

Press Releases

Ares Capital Corporation Schedules Earnings Release for the Third Quarter Ended September 30, 2024

Ares Capital Corporation Announces September 30, 2024 Financial Results and Declares Fourth Quarter 2024 Dividend of $0.48 Per Share

Ares Capital Corporation Appoints Jim Miller as Co-President

Ares Capital Corporation Prices Public Offering of $1 Billion 5.800% Unsecured Notes Due 2032

Ares Capital Corporation Schedules Earnings Release for the Fourth Quarter and Fiscal Year Ended December 31, 2024

Ares Capital Corporation Announces Tax Reporting Information for Calendar Year 2024

Ares Capital Corporation Appoints Kort Schnabel as Chief Executive Officer

Ares Capital Corporation Announces December 31, 2024 Financial Results and Declares First Quarter 2025 Dividend of $0.48 Per Share

Ares Capital Corporation Schedules Earnings Release for The First Quarter Ended March 31, 2025

Ares Capital Corporation Announces March 31, 2025 Financial Results and Declares Second Quarter 2025 Dividend of $0.48 Per Share

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