Options trading on Ares Capital Corporation (ARCC, Financial) has shown a marked increase in bearish sentiment, with a total of 3,717 put options changing hands. This figure is 1.2 times the anticipated volume, signaling heightened investor interest in potential downturns.
Investor focus is particularly concentrated on the June 2025 expiration, with the $17 and $18 strike puts leading the activity. These two strikes alone account for nearly 3,200 contracts, underscoring the market's cautious stance on the stock's near-term performance.
The Put/Call Ratio for Ares Capital has surged to 2.54, reflecting a preference for protective put options over call options among traders. Additionally, the at-the-money implied volatility (ATM IV) has increased by more than four percentage points, indicating expectations of significant price fluctuations.
This spike in options activity comes as the company prepares to release its earnings on April 29th. Investors appear to be positioning themselves in anticipation of the forthcoming financial report, which is expected to provide further insights into Ares Capital's performance and outlook.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Ares Capital Corp (ARCC, Financial) is $23.17 with a high estimate of $26.00 and a low estimate of $21.00. The average target implies an upside of 17.18% from the current price of $19.77. More detailed estimate data can be found on the Ares Capital Corp (ARCC) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, Ares Capital Corp's (ARCC, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ares Capital Corp (ARCC, Financial) in one year is $38.50, suggesting a upside of 94.74% from the current price of $19.77. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ares Capital Corp (ARCC) Summary page.
