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ARCC Overview

-
$
0.000
0.000(0.000%)
At close
0.000(0.000%)Aft-market
ET
$
0.000
0.000(0.000%)
At close
0.000(0.000%)Aft-market
ET
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Intellectia

Loading chart...

High
19.170
Open
18.815
VWAP
18.97
Vol
6.21M
Mkt Cap
13.64B
Low
18.760
Amount
117.79M
EV/EBITDA(TTM)
22.17
Total Shares
718.02M
EV
28.98B
EV/OCF(TTM)
--
P/S(TTM)
4.64
Ares Capital Corporation is a specialty finance company focused on providing direct loans and other investments in private middle market companies in the United States. The Company invests 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, it also invests in subordinated debt, which in some cases includes an equity component, and preferred equity. It also may invest up to 30% of its portfolio in non-qualifying assets. Its investment activities are focused on industries, such as software and services, health care services, commercial and professional services, financial services, commercial and professional services, insurance services, energy, food and beverage and others. The Company is externally managed by Ares Capital Management LLC (investment adviser).
Show More

Events Timeline

(ET)
2026-04-28
17:50:00
Ares Capital Signs $1.5B Equity Distribution Agreements with Multiple Securities Firms
select
2026-04-28
07:20:00
Ares Capital Reports Q1 Revenue of $763M
select
2026-03-16 (ET)
2026-03-16
08:50:00
Ares Capital Borrow Rate Increases to 9.43%
select

News

NASDAQ.COM
8.0
17:04 PMNASDAQ.COM
Stable Dividend Performance of High-Yield Stocks
  • Ares Capital's Stable Dividends: Ares Capital has paid a stable or growing dividend for over 16 consecutive years, currently offering a quarterly dividend of $0.48 per share, with a high yield of 10.2% reflecting its strong financial health and earnings capacity, making it appealing to risk-tolerant investors despite its higher risk profile.
  • Energy Transfer's Strong Cash Flow: Energy Transfer generated $2.7 billion of distributable cash flow in the first quarter, easily covering nearly $1.2 billion in distributions, and plans to invest between $5.5 billion and $5.9 billion in organic expansion projects in 2023, which is expected to drive its distribution growth by 3% to 5% annually.
  • Starwood Property's Consistent Dividends: Starwood Property Trust, a real estate investment trust, has maintained its quarterly dividend rate of $0.48 for over a decade, and although its distributable earnings were $0.39 per share in the first quarter, it has $3.87 per share in unrealized distributable earnings to support its dividend, showcasing its sustainability.
  • Attracting Risk Investors: Ares Capital, Energy Transfer, and Starwood Property currently offer dividend yields up to 11.2%, and despite the overall low dividend yields in the market, these companies attract income-seeking investors through their stable dividend strategies, demonstrating their competitiveness in the current market environment.
Fool
8.0
16:06 PMFool
Three High-Yield Stocks to Boost Dividend Income
  • Ares Capital's High Yield: Ares Capital (ARCC) currently offers a dividend yield of 10.2%, necessitated by its requirement to distribute 90% of taxable net income, ensuring sustainability and demonstrating competitive strength in high-risk dividend stocks with over 16 years of stable growth.
  • Energy Transfer's Cash Flow: Energy Transfer (ET) generated $2.7 billion of distributable cash flow in Q1, easily covering nearly $1.2 billion in distributions, while planning to invest between $5.5 billion and $5.9 billion in organic expansion projects in 2023, which is expected to drive annual dividend growth of 3% to 5%.
  • Starwood Property Trust's Stability: Starwood Property Trust (STWD) boasts an 11.2% dividend yield, maintaining a quarterly dividend of $0.48 for over a decade; despite Q1 distributable earnings falling short of dividends, it holds $3.87 per share in unrealized distributable earnings, ensuring dividend security.
  • Investment Opportunities for Risk Tolerance: Ares Capital, Energy Transfer, and Starwood Property all present high-yield dividends, making them attractive for risk-tolerant investors to bolster dividend income in June, highlighting the necessity of seeking appealing investments in a low-yield environment.
Yahoo Finance
2.0
07:04 AMYahoo Finance
Private Credit Defaults May Rise to 10% Amid AI Disruption
  • Default Rate Forecast: UBS anticipates private credit default rates will rise from the current 4.4% to between 9% and 10%, with AI-related disruptions potentially adding an additional 3% to 4% default risk, indicating increased pressure on borrowers.
  • Industry Vulnerability: Software companies are deemed particularly vulnerable as advancements in AI may slow revenue growth, weaken pricing power, compress margins, and lead to contract cancellations, with these pressures expected to intensify toward the end of 2026 and into 2027.
  • Market Impact Comparison: UBS forecasts private credit defaults of 9% to 10% by the end of 2026, compared to 3.5% to 4% for leveraged loans and 1.75% to 2% for high-yield bonds, highlighting significant variations in default rates across different credit markets.
  • Leverage Risk Warning: UBS notes that leverage in private credit and private equity markets totals at least $1.5 trillion, and while credit markets currently support the ongoing AI investment boom, rising defaults could impose greater constraints on funding conditions by 2027.
Newsfilter
7.5
05-29Newsfilter
U.S. Private Credit Lenders Face Deepening Losses
  • Deepening Unrealized Losses: In Q1 2026, U.S. private credit lenders reported unrealized losses of 2.35% of net asset value, marking the worst quarterly performance since Q2 2022, indicating increased strain on middle-market companies due to higher borrowing costs.
  • Pressure on Cash Income: Payment-in-kind (PIK) interest income remained elevated at approximately $477 million, a 2% increase from the previous quarter but below the early 2025 peak of $633 million, highlighting investor concerns over non-cash income.
  • Liquidity Risk Warning: Fitch has cautioned that rising exposure to loans with deferrable interest could pressure BDC liquidity if cash earnings are insufficient to cover dividend payments, increasing market uncertainty.
  • Market Cycle Shift: Howard Mason from Renaissance Macro Research noted that private credit is entering its first real credit cycle since the Global Financial Crisis, with rising borrowing costs and AI-related pressures on software valuations particularly impacting highly leveraged deals from 2021.
seekingalpha
8.5
05-27seekingalpha
Ares Management CEO Discusses M&A and Market Outlook
  • M&A Performance Exceeds Expectations: Ares Management CEO Michael Arougheti stated that approximately 20% of the company's AUM growth has stemmed from transformational acquisitions, particularly the GCP acquisition, which added significant Japanese real estate and data center development businesses, showcasing the company's strategic success in M&A.
  • Diversified Strategies Drive Profitability: Arougheti emphasized that while high rates pose challenges in certain areas, the company's diversified strategies enable profitable growth in any rate environment, demonstrating resilience and adaptability in its business model.
  • Stability in Private Credit Market: Discussing private credit, Arougheti noted that the loan and high-yield markets are not showing significant stress, with Ares' software portfolio representing about 8% of its private credit book, reflecting effective risk management practices within the company.
  • Recovery in Direct Lending Activity: Although direct lending activity in the U.S. was slow in Q1, Arougheti indicated that it is now picking up, signaling a recovery in market demand and the company's proactive positioning in the credit space.
Newsfilter
4.5
05-21Newsfilter
Diverse Risk Premiums Assigned to U.S. Private Credit Firms
  • Risk Premium Disparity: A Reuters analysis reveals that U.S. private credit firms are facing diverse risk premiums, with smaller lenders priced at greater risk, indicating a growing selectivity in a market under borrower stress.
  • Spread Data: BCP Investment Corp recorded the highest weighted average option-adjusted spread (OAS) at 680 basis points, followed by Prospect Capital Corp at 449 bps, highlighting market concerns over varying credit quality among firms.
  • Market Selectivity: The widening of spreads this year reflects investors' increasing differentiation of BDCs exposed to AI disruptions in SaaS companies, signaling a heightened focus on credit quality and funding risks.
  • Rising Default Rates: Fitch Ratings reports that the default rate among U.S. private credit borrowers reached 6% over the past 12 months, the highest since August 2024, indicating a weakening backdrop for the private credit market.
Wall Street analysts forecast ARCC stock price to rise
4 Analyst Rating
Wall Street analysts forecast ARCC stock price to rise
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 0.000
sliders
Low
20.00
Averages
21.75
High
23.00
Current: 0.000
sliders
Low
20.00
Averages
21.75
High
23.00
B. Riley
Buy
maintain
$22 -> $20
AI Analysis
2026-04-29
Reason
B. Riley
Price Target
$22 -> $20
AI Analysis
2026-04-29
maintain
Buy
Reason
B. Riley lowered the firm's price target on Ares Capital to $20 from $22 and keeps a Buy rating on the shares. Ares Capital reported mixed Q1 results, with net investment income below expectations and NAV declining due to portfolio markdowns, the analyst tells investors in a research note.
RBC Capital
Kenneth Lee
Outperform
downgrade
$22 -> $21
2026-04-29
Reason
RBC Capital
Kenneth Lee
Price Target
$22 -> $21
2026-04-29
downgrade
Outperform
Reason
RBC Capital analyst Kenneth Lee lowered the firm's price target on Ares Capital to $21 from $22 and keeps an Outperform rating on the shares after its Q1 results. Market volatility is driving price discovery and reset phase, with the management seeing more attractive terms and pricing on recent deals, the analyst tells investors in a research note. RBC adds that it continues to favor Ares's strong track record of managing risks through the cycle.
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Valuation Metrics

The current forward P/E ratio for Ares Capital Corp (ARCC.O) is 9.57, compared to its 5-year average forward P/E of 9.40. For a more detailed relative valuation and DCF analysis to assess Ares Capital Corp's fair value, Click here.

Forward PE

The forward P/E ratio is a valuation metric that divides a company's current stock price by its estimated future earnings per share over the next 12 months.
StronglyUndervaluedUndervaluedFairOvervaluedStronglyOvervalueddotted line Image
5Y Average PE
9.40
Current PE
9.57
Overvalued PE
10.43
Undervalued PE
8.36

Forward EV/EBITDA

The forward EV/EBITDA ratio is a valuation metric that divides a company's enterprise value (EV) by its estimated future earnings before interest, taxes, depreciation, and amortization (EBITDA) over the next 12 months.
StronglyUndervaluedUndervaluedFairOvervaluedStronglyOvervalueddotted line Image
N/A
5Y Average EV/EBITDA
3.01
Current EV/EBITDA
10.93
Overvalued EV/EBITDA
14.78
Undervalued EV/EBITDA
-8.75

Forward PS

The forward P/S ratio is a valuation metric that divides a company's current stock price by its estimated future sales (or revenue) per share over the next 12 months.
StronglyUndervaluedUndervaluedFairOvervaluedStronglyOvervalueddotted line Image
5Y Average PS
4.58
Current PS
4.21
Overvalued PS
5.10
Undervalued PS
4.05

Financials

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Whales Holding ARCC

A
Altshuler Shaham Ltd.
Holding
ARCC
+19.00%
3M Return
A
Advisors Capital Management, LLC
Holding
ARCC
+15.27%
3M Return
M
Mutual Advisors, LLC
Holding
ARCC
+13.64%
3M Return
A
Allen Investment Management, LLC
Holding
ARCC
+12.13%
3M Return
S
Stephens Capital Management
Holding
ARCC
+11.95%
3M Return
G
Generali Asset Management SGR SpA
Holding
ARCC
+11.44%
3M Return

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Frequently Asked Questions

What is Ares Capital Corp (ARCC) stock price today?

The current price of ARCC is 18.99 USD — it has increased 0.96

What is Ares Capital Corp (ARCC)'s business?

Ares Capital Corporation is a specialty finance company focused on providing direct loans and other investments in private middle market companies in the United States. The Company invests 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, it also invests in subordinated debt, which in some cases includes an equity component, and preferred equity. It also may invest up to 30% of its portfolio in non-qualifying assets. Its investment activities are focused on industries, such as software and services, health care services, commercial and professional services, financial services, commercial and professional services, insurance services, energy, food and beverage and others. The Company is externally managed by Ares Capital Management LLC (investment adviser).

What is the price predicton of ARCC Stock?

Wall Street analysts forecast ARCC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARCC is21.75 USD with a low forecast of 20.00 USD and a high forecast of 23.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

What is Ares Capital Corp (ARCC)'s revenue for the last quarter?

Ares Capital Corp revenue for the last quarter amounts to 457.00M USD, decreased -24.84

What is Ares Capital Corp (ARCC)'s earnings per share (EPS) for the last quarter?

Ares Capital Corp. EPS for the last quarter amounts to 0.13 USD, decreased -63.89

How many employees does Ares Capital Corp (ARCC). have?

Ares Capital Corp (ARCC) has 4250 emplpoyees as of May 31 2026.

What is Ares Capital Corp (ARCC) market cap?

Today ARCC has the market capitalization of 13.64B USD.