Ares Capital Corporation (ARCC) Stock Analysis
Financial Services · Asset Management
Sell if holding. Analyst target reached at $18.52 — A.R:R is negative (-0.4) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 1.1): -0.5.
Ares Capital is the largest publicly traded business development company (BDC) with $31.2 billion in total assets, investing primarily in first and second lien senior secured loans to U.S. middle-market companies with annual EBITDA between $10M and $250M. Revenue comes from... Read more
Sell if holding. Analyst target reached at $18.52 — A.R:R is negative (-0.4) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 1.1): -0.5. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.4/10, moderate confidence.
Passes 6/9 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 68d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: moderate.
Recent Developments — Ares Capital Corporation
Latest news
- ARCC Maintained by Citizens -- Price Target Lowered to $22.00 - GuruFocus — GuruFocus negative
- Citizens cuts Ares Capital stock price target on Q1 volatility By Investing.com - Investing.com Australia — Investing.com Australia negative
- Citizens cuts Ares Capital stock price target on Q1 volatility - Investing.com UK — Investing.com UK negative
- Citizens cuts Ares Capital stock price target on Q1 volatility By Investing.com - Investing.com Canada — Investing.com Canada negative
- D.A. Davidson & CO. Decreases Position in Ares Capital Corporation $ARCC - MarketBeat — MarketBeat negative
Generated 2026-05-20T21:06:21Z.
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
2 floor-breakers
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $18.52 — A.R:R is negative (-0.4) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 1.1): -0.5. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $17.92. Score 5.4/10, moderate confidence.
Take-profit target: $19.07 (+3.0% upside). Prior stop was $17.92. Stop-loss: $17.92.
Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.1): -0.5; Consecutive earnings misses (2).
Ares Capital Corporation trades at a P/E of 11.4 (forward 9.6). TrendMatrix value score: 7.8/10. Verdict: Sell.
20 analysts cover ARCC with a consensus score of 4.2/5. Average price target: $21.
What does Ares Capital Corporation do?Ares Capital is the largest publicly traded business development company (BDC) with $31.2 billion in total assets,...
Ares Capital is the largest publicly traded business development company (BDC) with $31.2 billion in total assets, investing primarily in first and second lien senior secured loans to U.S. middle-market companies with annual EBITDA between $10M and $250M. Revenue comes from interest income and fees on its diversified loan portfolio, with capital raised through equity and debt issuances. Externally managed by Ares Capital Management LLC, a subsidiary of Ares Management.