Hovde Group slashes price target on Ares Capital Corporation [ARCC] – find out why.

Ares Capital Corporation [NASDAQ: ARCC] stock went on an upward path that rose over 0.28% on Tuesday, amounting to a one-week price decrease of less than -7.03%. The company report on March 1, 2023 that Ares Capital Corporation to Present at the 2023 RBC Capital Markets Global Financial Institutions Conference.


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Ares Capital Corporation (“Ares Capital”) (NASDAQ:ARCC) announced today that Kort Schnabel, Ares Capital’s Co-President, is scheduled to present at the 2023 RBC Capital Markets Global Financial Institutions Conference on Wednesday, March 8, 2023 at 2:40pm ET.

A live audio webcast of the presentation will be available in the Investor Resources section of the Company’s website at www.arescapitalcorp.com. For those unable to listen to the live audio webcast, a replay will be available on the Company’s website shortly after the event.

Over the last 12 months, ARCC stock dropped by -11.22%. The one-year Ares Capital Corporation stock forecast points to a potential upside of 15.77. The average equity rating for ARCC stock is currently 1.70, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $9.48 billion, with 531.37 million shares outstanding and 522.91 million shares in the current float. Compared to the average trading volume of 3.23M shares, ARCC stock reached a trading volume of 4874992 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on Ares Capital Corporation [ARCC]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ARCC shares is $21.18 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ARCC stock is a recommendation set at 1.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Hovde Group have made an estimate for Ares Capital Corporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on April 28, 2022. The new note on the price target was released on April 27, 2022, representing the official price target for Ares Capital Corporation stock. Previously, the target price had yet another raise to $22.50, while Hovde Group analysts kept a Market Perform rating on ARCC stock.

The Average True Range (ATR) for Ares Capital Corporation is set at 0.40, with the Price to Sales ratio for ARCC stock in the period of the last 12 months amounting to 4.52. The Price to Book ratio for the last quarter was 0.97.

ARCC Stock Performance Analysis:

Ares Capital Corporation [ARCC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -7.03. With this latest performance, ARCC shares dropped by -9.63% in over the last four-week period, additionally sinking by -11.23% over the last 6 months – not to mention a drop of -11.22% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ARCC stock in for the last two-week period is set at 26.00, with the RSI for the last a single of trading hit 19.54, and the three-weeks RSI is set at 32.23 for Ares Capital Corporation [ARCC]. The present Moving Average for the last 50 days of trading for this stock 19.22, while it was recorded at 18.19 for the last single week of trading, and 19.05 for the last 200 days.

Insight into Ares Capital Corporation Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Ares Capital Corporation [ARCC] shares currently have an operating margin of +53.30 and a Gross Margin at +78.60. Ares Capital Corporation’s Net Margin is presently recorded at +27.50.

Return on Equity for this stock inclined to 6.51, with Return on Assets sitting at 2.78.

ARCC Stock EPS

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ARCC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Ares Capital Corporation go to -0.90%.

Ares Capital Corporation [ARCC] Insider Position Details

There are presently around $3,107 million, or 32.12% of ARCC stock, in the hands of institutional investors. The top three institutional holders of ARCC stocks are: ROYAL BANK OF CANADA with ownership of 11,316,074, which is approximately 2.872% of the company’s market cap and around 1.38% of the total institutional ownership; MORGAN STANLEY, holding 11,258,250 shares of the stock with an approximate value of $200.85 million in ARCC stocks shares; and VAN ECK ASSOCIATES CORP, currently with $102.25 million in ARCC stock with ownership of nearly 5.514% of the company’s market capitalization.

Positions in Ares Capital Corporation stocks held by institutional investors increased at the end of Tuesday and at the time of the Tuesday reporting period, where 383 institutional holders increased their position in Ares Capital Corporation [NASDAQ:ARCC] by around 19,633,592 shares. Additionally, 226 investors decreased positions by around 10,452,328 shares, while 111 investors held positions by with 144,089,539 shares. The mentioned changes placed institutional holdings at 174,175,459 shares, according to the latest SEC report filing. ARCC stock had 88 new institutional investments in for a total of 6,524,612 shares, while 59 institutional investors sold positions of 3,156,828 shares during the same period.

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