Ares Capital Corporation (ARCC)

Over the past six months, Ares Capital Corp.'s stock price has experienced a decrease of 6.37% and 6.77%. Key events impacting the stock include Q3 2025 earnings, where Ares Capital reported earnings per share (EPS) of $0.50, meeting consensus estimates, though revenues and earnings were expected to have declined year-over-year. The company announced fourth-quarter and third-quarter 2025 dividends of $0.48 per share. In September 2025, Ares Capital Corporation priced a public offering of $650 million in 5.100% unsecured notes due 2031. In October 2025, Wall Street Zen upgraded Ares Capital from a "sell" to a "hold" rating, while Wells Fargo & Company lowered its target price from $23.00 to $21.00 but maintained an "overweight" rating, and Citigroup reaffirmed a "market outperform" rating. Concerns have arisen regarding tight dividend coverage and declining net investment income, leading to a perceived risk of a dividend cut, potentially in early 2026. The stock has seen a decrease of 6.82% over the last 12 months and 0.29% in the past month as of November 2025.

As a Business Development Company, Ares Capital Corp.'s demand seasonality is closely tied to the overall activity and health of the private middle-market business sector rather than typical consumer-driven seasonal fluctuations. Factors influencing demand for its financing services include economic cycles, the interest rate environment, mergers and acquisitions (M&A) activity, and private equity activity. These factors can exhibit cyclical patterns but do not typically follow predictable calendar-based seasonality. Therefore, Ares Capital's demand is more influenced by broader economic and financial market trends affecting its target middle-market companies rather than inherent seasonal variations in the need for its specific financial products.

Ares Capital Corporation (ARCC) is a leading U.S.-based closed-ended specialty finance company operating as a Business Development Company (BDC). Its primary objective is to generate both current income and capital appreciation through debt and equity investments. Ares Capital operates within the Finance sector, specifically in the Asset Management and Finance: Consumer Services industries. The company specializes in providing customized financing solutions to private middle-market companies, encompassing first and second lien senior secured loans, mezzanine debt, and preferred and common equity investments. Ares Capital prefers to invest in companies across various sectors, such as basic and growth manufacturing, business services, consumer products, healthcare products and services, and information technology services. It also considers investments in industries like restaurants, retail, oil and gas, and technology.

Ares Capital Corp. primarily invests in United States-based companies, focusing on specific regions within the U.S., including the Northeast, Mid-Atlantic, Southeast, Southwest, Midwest, and Western regions. It maintains offices in key financial hubs such as New York, Chicago, and Los Angeles. As of September 30, 2025, Ares Capital's portfolio was diversified across various industry sectors and geographic representations.

Ares Capital Corporation generally maintains a strong reputation within its industry. It is recognized as a market-leading Business Development Company and one of the largest direct lenders in the U.S. The company's long operating history of over 20 years, during which it has navigated various credit cycles and maintained steady investment performance, contributes positively to its reputation. Its strong underwriting track record and favorable loss experience are also viewed favorably. Analyst consensus ratings for ARCC stock are generally positive, with a "Moderate Buy" rating from several analysts. The company's ability to consistently pay an attractive dividend also supports its standing among income-focused investors. No specific negative events significantly impacting Ares Capital Corp.'s brand reputation in the past year were found in the search results.

Ares Capital Corp. has a diverse ownership structure. Institutional shareholders hold approximately 31.29% to 32.04% of the company's stock, while retail investors own around 67.67% to 86.97% of the shares, and insiders hold about 1.04% to 0.30%. Major institutional owners include Morgan Stanley, Van Eck Associates Corp, Bank Of America Corp /de/, UBS Group AG, Jpmorgan Chase & Co, Generali Asset Management SPA SGR, Legal & General Group Plc, Wells Fargo & Company/mn, LPL Financial LLC, and Ameriprise Financial Inc. Antony P. Ressler is the largest individual Ares Capital shareholder, owning 3.50 million shares, representing 0.49% of the company. Insider buying has been observed over the last 12 months.