Ares Capital Corporation (ARCC)

Over the past six months, Ares Capital Corp. (ARCC) stock has declined by 19.66%. Recent corporate events include the announcement of December 31, 2025 financial results and a first-quarter 2026 dividend of $0.48 per share on February 4, 2026, tax reporting information for calendar year 2025 on January 30, 2026, scheduling its earnings release for Q4 2025 on January 6, 2026 and pricing a public offering of $750 million in unsecured notes due 2031 on January 5, 2026. Despite the stock's recent performance, the company closed 2025 with a record $15.8 billion in gross investment commitments and a portfolio that expanded to $29.5 billion across 602 companies. Core earnings per share of $2.01 for the year comfortably covered the $1.92 per share in dividends paid.

Ares Capital's business experiences demand seasonality. Origination volumes for its products and services generally tend to be slower in the first quarter compared to the fourth quarter. Capital structuring service fees, which are linked to origination volumes, typically follow this seasonal pattern as well. However, Ares Management noted that despite typically lower seasonal volume in the first quarter, their aggregate investment pipeline across the firm in mid-January increased from the previous quarter and reached a record level, indicating strong underlying demand.

Ares Capital Corporation (ARCC) is a publicly traded business development company specializing in debt and equity financing for private middle-market companies, aiming for current income and capital appreciation. ARCC invests primarily in secured loans and subordinated debt, targeting companies with annual EBITDA between $10 million and $250 million. The company's portfolio is diversified across various industries, including Software & Services, Health Care, Commercial & Professional Services, Financial Services, and others. Ares Capital is externally managed by a subsidiary of Ares Management Corporation.

Ares Capital Corporation primarily focuses its investment activities on U.S. middle-market companies. Its investment portfolio is geographically diversified across various regions within the U.S., with the Midwest accounting for 22.9%, the West for 20.3%, the Southeast for 18.8%, the Mid-Atlantic for 16.3%, and the Northeast for 15.1%. International investments constitute a smaller portion, making up 6.6% of the portfolio.

Ares Capital has maintained a generally positive brand reputation among analysts in the past year. The company has an average analyst rating of "Moderate Buy" from 10 brokerages. Ares Capital's investment portfolios have demonstrated strong fund performance and solid fundamentals. While the stock price has faced headwinds, this appears to be more related to broader market sentiment or valuation concerns rather than specific negative events impacting the company's operational reputation.

Ares Capital Corporation (ARCC) has a significant institutional ownership base, with 851 institutional owners and shareholders holding a total of 245,896,510 shares. Major institutional owners include Morgan Stanley, Van Eck Associates Corp, BIZD - VanEck Vectors BDC Income ETF, UBS Group AG, Bank Of America Corp /de/, Jpmorgan Chase & Co, Generali Asset Management SPA SGR, Legal & General Group Plc, Wells Fargo & Company/mn, and LPL Financial LLC.