What 7 Analyst Ratings Have To Say About Ares Capital

Across the recent three months, 7 analysts have shared their insights on Ares Capital (NASDAQ:ARCC), expressing a variety of opinions spanning from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Ares Capital, revealing an average target of $22.79, a high estimate of $23.50, and a low estimate of $22.00. This upward trend is evident, with the current average reflecting a 2.43% increase from the previous average price target of $22.25.

Deciphering Analyst Ratings: An In-Depth Analysis

The analysis of recent analyst actions sheds light on the perception of Ares Capital by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Ares Capital. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Ares Capital compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Ares Capital's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Ares Capital's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Ares Capital analyst ratings.

Delving into Ares Capital's Background

Ares Capital Corp is a United States-based closed-ended specialty finance company. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. The company focuses on investing 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, the company also invests in subordinated loans and preferred equity, it also makes common equity investments.

Unraveling the Financial Story of Ares Capital

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Ares Capital's revenue growth over a period of 3M has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 9.41%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: Ares Capital's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 88.7% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Ares Capital's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.61%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Ares Capital's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.26%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Ares Capital's debt-to-equity ratio is below the industry average. With a ratio of 1.01, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.