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

Ares Capital (NASDAQ:ARCC) had its price target lowered by analysts at Wells Fargo & Company from $21.00 to $20.00 in a report released on Thursday,Benzinga reports. The brokerage presently has an “overweight” rating on the investment management company’s stock. Wells Fargo & Company‘s price target points to a potential upside of 5.46% from the company’s current price.

Other equities analysts have also recently issued reports about the stock. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Ares Capital in a research note on Monday, December 29th. UBS Group dropped their price objective on shares of Ares Capital from $22.50 to $21.00 and set a “neutral” rating for the company in a report on Tuesday, October 14th. Capital One Financial set a $22.50 target price on Ares Capital in a report on Friday, October 10th. Keefe, Bruyette & Woods dropped 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. Finally, Citigroup restated a “market outperform” rating on shares of Ares Capital in a report on Thursday, October 30th. Seven research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, Ares Capital has an average rating of “Moderate Buy” and an average price target of $22.13.

Ares Capital Price Performance

Shares of NASDAQ:ARCC traded down $0.60 during trading on Thursday, hitting $18.97. 5,260,074 shares of the company’s stock were exchanged, compared to its average volume of 5,714,577. The business’s 50-day simple moving average is $20.44 and its 200 day simple moving average is $20.93. The company has a market cap of $13.57 billion, a price-to-earnings ratio of 9.52 and a beta of 0.59. Ares Capital has a 52-week low of $18.26 and a 52-week high of $23.63. The company has a debt-to-equity ratio of 1.09, a current ratio of 2.20 and a quick ratio of 2.20.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings results on Wednesday, February 4th. The investment management company reported $0.50 earnings per share for the quarter, hitting the consensus estimate of $0.50. Ares Capital had a return on equity of 10.08% and a net margin of 45.16%.The business had revenue of $793.00 million during the quarter, compared to the consensus estimate of $795.20 million. During the same period in the prior year, the company posted $0.55 EPS. The firm’s revenue for the quarter was up 4.5% compared to the same quarter last year. As a group, equities analysts predict that Ares Capital will post 2.19 EPS for the current year.

Hedge Funds Weigh In On Ares Capital

A number of large investors have recently made changes to their positions in the company. International Assets Investment Management LLC lifted its position in shares of Ares Capital by 33.9% in the 3rd quarter. International Assets Investment Management LLC now owns 275,891 shares of the investment management company’s stock worth $5,557,000 after purchasing an additional 69,844 shares during the period. Global Retirement Partners LLC raised its stake in Ares Capital by 265.3% in the third quarter. Global Retirement Partners LLC now owns 74,725 shares of the investment management company’s stock worth $1,525,000 after buying an additional 54,267 shares in the last quarter. Vise Technologies Inc. bought a new position in Ares Capital in the second quarter worth approximately $309,000. Newbridge Financial Services Group Inc. purchased a new stake in Ares Capital during the second quarter worth $2,810,000. Finally, Muzinich & Co. Inc. increased its holdings in shares of Ares Capital by 19.5% in the 3rd quarter. Muzinich & Co. Inc. now owns 1,640,113 shares of the investment management company’s stock valued at $33,475,000 after acquiring an additional 267,062 shares during the period. 27.38% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Ares Capital

Here are the key news stories impacting Ares Capital this week:

• Positive Sentiment: Q4 core earnings broadly met/beat analyst views and total investment income rose, which some outlets said sparked an initial share-price rally. ARCC’s Q4 Earnings Meet, Stock Up on Higher Total Investment Income
• Positive Sentiment: Management flagged record originations of $15.8B in 2025 and said it’s maintaining dividend stability — a signal of continued deal flow and capital deployment. Ares Capital signals record $15.8B originations in 2025 while maintaining dividend stability
• Positive Sentiment: Company declared a $0.48 quarterly dividend (annualized yield ~9.8%), with an ex-dividend date in mid‑March — supports income-focused investor demand.
• Positive Sentiment: Portfolio/sector resilience: Ares’ software loan book was described as healthy despite AI-related market concerns, limiting credit-risk headlines. Ares BDC says software loan book remains healthy amid AI fears
• Neutral Sentiment: Mixed beats/in-line reads — some transcripts and outlets show EPS ~ $0.517 vs. $0.50 consensus, while others report EPS of $0.50 in line; revenue came in roughly $793M (small miss vs. ~$795M consensus). This nuance can temper strong directional moves. Ares Capital Q4 2025 Earnings Call Transcript
• Negative Sentiment: Higher operating/other expenses partially offset the rise in investment income, reducing net benefit to earnings — a headwind for margin expansion expectations. ARCC’s Q4 Earnings Meet, Stock Up on Higher Total Investment Income
• Negative Sentiment: Trend risk: core EPS declined year-over-year (prior-year quarter was higher), and some previews flagged pressure on net investment income (NII) and potential dividend sustainability concerns if margins or yields compress. Ares Capital Q4 earnings preview: NII, dividend under pressure

Ares Capital Company Profile

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.