B. Riley Predicts Ares Capital’s Q1 Earnings (NASDAQ:ARCC)

Ares Capital Co. (NASDAQ:ARCC) – Analysts at B. Riley raised their Q1 2025 earnings estimates for shares of Ares Capital in a research report issued to clients and investors on Thursday, October 31st. B. Riley analyst B. Rowe now forecasts that the investment management company will post earnings of $0.56 per share for the quarter, up from their previous estimate of $0.55. B. Riley currently has a “Neutral” rating and a $22.00 target price on the stock. The consensus estimate for Ares Capital’s current full-year earnings is $2.39 per share. B. Riley also issued estimates for Ares Capital’s Q2 2025 earnings at $0.57 EPS, Q3 2025 earnings at $0.58 EPS and FY2025 earnings at $2.27 EPS.

Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings data on Wednesday, October 30th. The investment management company reported $0.58 earnings per share for the quarter, missing the consensus estimate of $0.59 by ($0.01). Ares Capital had a return on equity of 12.31% and a net margin of 53.71%. The firm had revenue of $755.00 million for the quarter, compared to the consensus estimate of $770.45 million. During the same period in the prior year, the company posted $0.59 earnings per share. Ares Capital’s quarterly revenue was up 15.3% compared to the same quarter last year.

A number of other research firms have also commented on ARCC. UBS Group raised Ares Capital to a “hold” rating in a research note on Friday, August 23rd. Compass Point raised shares of Ares Capital to a “strong-buy” rating in a report on Tuesday, July 30th. Royal Bank of Canada reaffirmed an “outperform” rating and set a $22.00 price objective on shares of Ares Capital in a report on Monday, August 5th. Finally, JMP Securities lifted their target price on Ares Capital from $21.00 to $22.00 and gave the company a “market outperform” rating in a research note on Tuesday, July 30th. Three research analysts have rated the stock with a hold rating, five have issued a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $21.86.

Ares Capital Stock Down 0.9 %

NASDAQ ARCC opened at $21.14 on Friday. The stock’s 50 day simple moving average is $21.00 and its 200 day simple moving average is $20.94. Ares Capital has a one year low of $18.86 and a one year high of $22.05. The firm has a market cap of $13.33 billion, a PE ratio of 8.13 and a beta of 1.01. The company has a debt-to-equity ratio of 1.05, a current ratio of 1.40 and a quick ratio of 1.40.

Hedge Funds Weigh In On Ares Capital

Several hedge funds have recently added to or reduced their stakes in ARCC. Jamison Private Wealth Management Inc. raised its position in shares of Ares Capital by 62.7% in the 2nd quarter. Jamison Private Wealth Management Inc. now owns 1,233 shares of the investment management company’s stock valued at $26,000 after acquiring an additional 475 shares during the period. Asset Dedication LLC bought a new position in Ares Capital during the second quarter worth about $26,000. Hobbs Group Advisors LLC bought a new stake in shares of Ares Capital in the second quarter worth about $32,000. nVerses Capital LLC raised its position in shares of Ares Capital by 88.9% during the second quarter. nVerses Capital LLC now owns 1,700 shares of the investment management company’s stock worth $35,000 after purchasing an additional 800 shares during the period. Finally, Ridgewood Investments LLC bought a new position in shares of Ares Capital during the 2nd quarter valued at about $42,000. Institutional investors and hedge funds own 27.38% of the company’s stock.

Ares Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 30th. Investors of record on Friday, December 13th will be paid a dividend of $0.48 per share. The ex-dividend date of this dividend is Friday, December 13th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.08%. Ares Capital’s dividend payout ratio (DPR) is presently 73.85%.

Ares Capital Company Profile

Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.