Stock of the Day - September 11, 2024

Ares Capital (ARCC)

$19.17

-$0.04 (-0.2%)

Market Cap: $13.76B

About Ares Capital

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. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.

Today's Trend

Ares Capital Corporation (ARCC): Shares are trading higher after recent coverage showed resilience in the private‑credit market and continued investor interest in ARCC’s high yield. Fundraising strength at parent Ares Management and ARCC’s quarterly commentary that exposure to software loans poses limited stress appear to be supporting the stock, though analyst price‑target trims and a slight quarterly earnings miss add caution.

Ares Management’s record first‑quarter fundraising and commentary that its credit platform — including Ares Capital — sees limited strain from industry liquidity or software exposures supports confidence in ARCC’s portfolio and dividend sustainability. Private credit roundup: the ebb and flow of fresh investment
Income-focused publications are highlighting ARCC as a high‑yield option, which can attract dividend-seeking flows into the stock. This interest supports demand for the shares from yield investors. Want $4,087 in Passive Income? Invest $10,000 Into These 3 High-Yielding Stocks
Zacks and other retail‑investor trackers flag ARCC as a trending ticker, reflecting increased retail attention that can raise short‑term volume and volatility but not necessarily change fundamentals. Ares Capital Corporation (ARCC) Is a Trending Stock
Ares updated its at‑the‑market (ATM) equity offering program — provides liquidity and optional capital but could be dilutive if shares are issued; impact depends on future use. Ares Capital Updates At-the-Market Equity Offering Program
Analysts trimmed price targets recently (Oppenheimer to $21, B. Riley to $20), signaling tempered upside expectations and contributing downward pressure on sentiment. Oppenheimer cuts price target B. Riley adjusts price target
Q1 results were mixed: EPS missed by $0.01 and revenue came in slightly under estimates — fundamentals mostly steady but the small miss keeps some near‑term upside capped. Ares Capital Corp Q1 2026 Earnings Call Highlights

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Ares Capital (ARCC)

About Ares Capital

Today's Trend

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