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Ares Capital Corporation (NASDAQ:ARCC) is included among the 10 Best BDC Stocks to Buy Right Now.
On April 29, B. Riley lowered its price recommendation on Ares Capital Corporation (NASDAQ:ARCC) to $20 from $22. It reiterated a Buy rating on the shares. In a research note, the analyst said the company reported mixed Q1 results. Net investment income came in below expectations, and NAV declined, mainly due to portfolio markdowns.
During the Q1 2026 earnings call, CEO Kort Schnabel said the company generated core earnings of $0.47 per share. He noted that the market appears to be going through a reset, with wider spreads, lower leverage, and more favorable deal terms starting to show up. He added that new deals are being discussed with an extra 50 to 75 basis points in fees and spreads. He also pointed out that the company’s roughly $6 billion in available liquidity puts it in a strong position, especially as market volatility and retail outflows reduce competitive pressure.
Ares Capital Corporation (NASDAQ:ARCC) is a specialty finance company focused on providing direct loans and other investments to private middle-market companies in the United States. It primarily invests in first lien senior secured loans, including unitranche structures, as well as second lien senior secured loans.
While we acknowledge the potential of ARCC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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