ARCC Stock Summary and Trading Ideas (Ares Capital - Closed End | NASDAQ:ARCC)

Ares Capital Corp is a US-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 U.S. middle-market companies with investment opportunities as well as in larger companies. Its portfolio comprises of first lien senior secured loans, second lien senior secured loans and mezzanine debt (subordinated unsecured loan) which may include equity components which are diversified by industry and sector. The company may invest in preferred and common equity investments to a lesser proportion. Its revenue mainly consists of interest and dividend income received from the investment made.

Ares Capital - Closed End trades on the NASDAQ stock market under the symbol ARCC.

As of December 31, 2024, ARCC stock price declined to $21.89 with 4,569,423 million shares trading.

ARCC has a beta of 0.38, meaning it tends to be less sensitive to market movements. ARCC has a correlation of 0.19 to the broad based SPY ETF.

ARCC has a market cap of $9.35 billion. This is considered a Mid Cap stock.

In the last 3 years, ARCC traded as high as $23.00 and as low as $16.53.

ARCC has underperformed the market in the last year with a return of +18.9%, while SPY returned +24.8%. This shows that you would have done better investing in the overall market (through SPY) over the last year than in ARCC shares. However, ARCC has outperformed the market in the last 3 month and 2 week periods, returning +6.8% and +2.8%, while SPY returned +2.5% and -2.7%, respectively. This indicates ARCC has been having a stronger performance recently.

ARCC support price is $21.75 and resistance is $22.13 (based on 1 day standard deviation move). This means that using the most recent 20 day stock volatility and applying a one standard deviation move around the stock's closing price, stastically there is a 67% probability that ARCC shares will trade within this expected range on the day.