Ares Management Corporation (NYSE:ARES) Receives Average Rating of “Moderate Buy” from Analysts

Shares of Ares Management Corporation (NYSE:ARES) have been assigned an average recommendation of “Moderate Buy” from the seventeen research firms that are covering the stock, Marketbeat.com reports. Four analysts have rated the stock with a hold recommendation, twelve have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price target among brokerages that have covered the stock in the last year is $179.7333.

Several research firms have recently issued reports on ARES. Royal Bank Of Canada decreased their price objective on Ares Management from $180.00 to $173.00 and set an “outperform” rating on the stock in a report on Tuesday, February 24th. TD Cowen reiterated a “buy” rating on shares of Ares Management in a research report on Wednesday, January 14th. UBS Group set a $148.00 price target on Ares Management in a research note on Friday, February 20th. Wall Street Zen cut Ares Management from a “hold” rating to a “sell” rating in a report on Saturday, February 28th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Ares Management in a research note on Monday, December 29th.

Insider Activity at Ares Management

In related news, Director Judy D. Olian acquired 480 shares of the stock in a transaction dated Friday, February 20th. The stock was bought at an average cost of $124.43 per share, with a total value of $59,726.40. Following the purchase, the director directly owned 29,734 shares of the company’s stock, valued at approximately $3,699,801.62. This represents a 1.64% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Ashish Bhutani acquired 10,000 shares of the company’s stock in a transaction dated Friday, February 6th. The shares were purchased at an average price of $126.61 per share, with a total value of $1,266,100.00. Following the completion of the acquisition, the director owned 34,071 shares in the company, valued at approximately $4,313,729.31. The trade was a 41.54% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 36.86% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its holdings in shares of Ares Management by 20.2% during the 4th quarter. Vanguard Group Inc. now owns 26,050,425 shares of the asset manager’s stock valued at $4,210,530,000 after buying an additional 4,373,955 shares during the period. Norges Bank purchased a new position in Ares Management in the 4th quarter worth approximately $396,165,000. Geode Capital Management LLC grew its position in Ares Management by 55.7% in the fourth quarter. Geode Capital Management LLC now owns 5,489,004 shares of the asset manager’s stock valued at $883,716,000 after acquiring an additional 1,963,460 shares in the last quarter. Massachusetts Financial Services Co. MA grew its position in Ares Management by 26.3% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 5,705,599 shares of the asset manager’s stock valued at $922,196,000 after acquiring an additional 1,187,174 shares in the last quarter. Finally, Winslow Capital Management LLC purchased a new stake in shares of Ares Management during the second quarter valued at approximately $161,774,000. Institutional investors and hedge funds own 50.03% of the company’s stock.

Ares Management Stock Performance

NYSE:ARES opened at $107.95 on Friday. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.22 and a quick ratio of 1.22. The firm has a market cap of $35.56 billion, a PE ratio of 63.87, a P/E/G ratio of 0.79 and a beta of 1.55. The firm has a 50 day simple moving average of $127.08 and a 200-day simple moving average of $149.38. Ares Management has a 1-year low of $95.80 and a 1-year high of $195.26.

Ares Management (NYSE:ARES) last released its earnings results on Thursday, February 5th. The asset manager reported $1.45 EPS for the quarter, missing the consensus estimate of $1.71 by ($0.26). The firm had revenue of $1.50 billion during the quarter, compared to analysts’ expectations of $1.38 billion. Ares Management had a return on equity of 19.04% and a net margin of 9.41%.During the same period in the previous year, the firm posted $0.55 earnings per share. On average, equities analysts expect that Ares Management will post 5.28 EPS for the current year.

Ares Management Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th will be issued a $1.35 dividend. The ex-dividend date is Tuesday, March 17th. This is a positive change from Ares Management’s previous quarterly dividend of $0.84. This represents a $5.40 dividend on an annualized basis and a yield of 5.0%. Ares Management’s payout ratio is presently 319.53%.

Ares Management Company Profile

Ares Management Corporation (NYSE: ARES) is a global alternative asset manager that provides investment solutions across credit, private equity and real estate. The firm originates and manages capital across a range of strategies including direct lending, syndicated and special situations credit, private equity buyouts and growth investments, and real estate equity and debt. Ares serves institutional investors, insurance companies, pension funds, sovereign wealth funds, and high‑net‑worth clients through both commingled funds and bespoke managed account structures.

Within credit, Ares offers strategies spanning leveraged loans, structured credit, opportunistic and distressed debt, and specialty finance, with an emphasis on underwriting, portfolio construction and active asset management.