The stock price of Ares Capital Corp (NASDAQ: ARCC) has plunged by -7.20 when compared to previous closing price of 21.52, but the company has seen a -9.68% decline in its stock price over the last five trading sessions. seekingalpha.com reported 2025-04-05 that This article is part of our monthly series where we highlight five large-cap, relatively safe, dividend-paying companies offering significant discounts to their historical norms. The market is volatile with economic uncertainties, but investing consistently in solid dividend-paying stocks with reasonable valuations is a good idea. We go over our filtering process to select just five conservative DGI stocks from more than 7,500 companies that are traded on U.S. exchanges, including OTC networks.
Is It Worth Investing in Ares Capital Corp (NASDAQ: ARCC) Right Now?
Ares Capital Corp (NASDAQ: ARCC) has a price-to-earnings ratio that is above its average at 8.18x. The stock has a 36-month beta value of 0.74. Opinions on the stock are mixed, with 7 analysts rating it as a “buy,” 4 as “overweight,” 3 as “hold,” and 0 as “sell.”
The public float for ARCC is 679.04M, and at present, short sellers hold a 2.50% of that float. On April 07, 2025, the average trading volume of ARCC was 4.63M shares.
ARCC’s Market Performance
ARCC stock saw a decrease of -9.68% in the past week, with a monthly decline of -10.57% and a quarterly a decrease of -10.09%. The volatility ratio for the week is 2.63%, and the volatility levels for the last 30 days are 2.05% for Ares Capital Corp (ARCC). The simple moving average for the last 20 days is -8.58% for ARCC stock, with a simple moving average of -7.62% for the last 200 days.
Analysts’ Opinion of ARCC
Wells Fargo gave a rating of “Overweight” to ARCC, setting the target price at $23 in the report published on December 02nd of the previous year.
ARCC Trading at -11.78% from the 50-Day Moving Average
After a stumble in the market that brought ARCC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -16.23% of loss for the given period.
Volatility was left at 2.05%, however, over the last 30 days, the volatility rate increased by 2.63%, as shares sank -13.21% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -14.59% lower at present.
During the last 5 trading sessions, ARCC fell by -9.68%, which changed the moving average for the period of 200-days by -3.57% in comparison to the 20-day moving average, which settled at $21.84. In addition, Ares Capital Corp saw -8.77% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at ARCC starting from Miller James Robert, who purchase 40,000 shares at the price of $23.32 back on Mar 03 ’25. After this action, Miller James Robert now owns 40,000 shares of Ares Capital Corp, valued at $932,800 using the latest closing price.
Bates Ann Torre, the Director of Ares Capital Corp, purchase 6,000 shares at $22.75 during a trade that took place back on Feb 11 ’25, which means that Bates Ann Torre is holding 30,000 shares at $136,500 based on the most recent closing price.
Stock Fundamentals for ARCC
Current profitability levels for the company are sitting at:
- 0.86 for the present operating margin
- 0.94 for the gross margin
The net margin for Ares Capital Corp stands at 0.55. The total capital return value is set at 0.09.
When we switch over and look at the enterprise to sales, we see a ratio of 4.7. The receivables turnover for the company is 9.49for trailing twelve months and the total asset turnover is 0.1.
Conclusion
To sum up, Ares Capital Corp (ARCC) has seen a bad performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
