Ares Management (NYSE:ARES) Stock Gets Price Target Increase from Wells Fargo & Company

Key Points

• Wells Fargo raised Ares Management’s price target from $136 to $141 while maintaining an “overweight” rating, implying 10.27% upside from the previous close. The stock has a consensus “Moderate Buy” rating and an average target of $146.21.
• Ares modestly exceeded quarterly expectations, reporting $1.26 in EPS versus $1.25 expected and $1.43 billion in revenue versus $1.24 billion forecast. However, revenue declined 13.5% year over year.
• Institutional investors increased their holdings, with hedge funds and institutions owning 50.03% of the stock. Shares recently traded at $127.87, within a 52-week range of $95.80 to $181.19.

Ares Management (NYSE:ARES - Get Free Report) had its price objective lifted by research analysts at Wells Fargo & Company from $136.00 to $141.00 in a research note issued on Friday, Benzinga reports. The brokerage currently has an "overweight" rating on the asset manager's stock. Wells Fargo & Company's target price would indicate a potential upside of 10.27% from the stock's previous close.

Other equities analysts have also issued research reports about the stock. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $144.00 price target (up from $140.00) on shares of Ares Management in a research report on Monday, August 3rd. UBS Group reduced their price target on Ares Management from $142.00 to $134.00 and set a "neutral" rating on the stock in a report on Tuesday, October 13th. Royal Bank Of Canada boosted their target price on Ares Management from $168.00 to $171.00 and gave the stock an "outperform" rating in a report on Friday. Barclays boosted their target price on shares of Ares Management from $139.00 to $151.00 and gave the company an "overweight" rating in a research report on Friday. Finally, Oppenheimer increased their price objective on shares of Ares Management from $151.00 to $162.00 and gave the company an "outperform" rating in a report on Thursday, August 27th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $146.21.

Ares Management Stock Performance

Shares of ARES stock traded up $0.40 during trading on Friday, reaching $127.87. 846,296 shares of the company's stock were exchanged, compared to its average volume of 2,886,708. The company has a quick ratio of 0.26, a current ratio of 0.26 and a debt-to-equity ratio of 1.00. The stock has a market capitalization of $42.23 billion, a PE ratio of 58.42, a PEG ratio of 1.12 and a beta of 1.53. The firm's fifty day moving average price is $126.24 and its 200-day moving average price is $125.49. Ares Management has a twelve month low of $95.80 and a twelve month high of $181.19.

Ares Management (NYSE:ARES - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The asset manager reported $1.26 earnings per share for the quarter, topping analysts' consensus estimates of $1.25 by $0.01. Ares Management had a net margin of 10.63% and a return on equity of 25.42%. The company had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.24 billion. During the same quarter in the prior year, the firm posted $1.15 EPS. The firm's quarterly revenue was down 13.5% on a year-over-year basis. As a group, sell-side analysts anticipate that Ares Management will post 5.80 EPS for the current year.

Institutional Trading of Ares Management

Several institutional investors and hedge funds have recently bought and sold shares of the business. Principal Financial Group Inc. raised its holdings in shares of Ares Management by 4.4% during the 1st quarter. Principal Financial Group Inc. now owns 4,009,291 shares of the asset manager's stock worth $437,417,000 after acquiring an additional 169,598 shares during the period. Vulcan Value Partners LLC grew its position in Ares Management by 12.5% in the second quarter. Vulcan Value Partners LLC now owns 1,902,580 shares of the asset manager's stock worth $211,776,000 after acquiring an additional 211,404 shares during the period. Janus Henderson Group PLC increased its stake in Ares Management by 43.8% during the first quarter. Janus Henderson Group PLC now owns 1,653,078 shares of the asset manager's stock worth $180,343,000 after acquiring an additional 503,688 shares during the last quarter. Curated Wealth Partners LLC increased its stake in Ares Management by 968.3% during the third quarter. Curated Wealth Partners LLC now owns 1,450,854 shares of the asset manager's stock worth $168,546,000 after acquiring an additional 1,315,043 shares during the last quarter. Finally, Hamlin Capital Management LLC lifted its stake in shares of Ares Management by 6.6% in the 3rd quarter. Hamlin Capital Management LLC now owns 1,022,899 shares of the asset manager's stock valued at $118,830,000 after purchasing an additional 63,265 shares during the last quarter. 50.03% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Ares Management

Here are the key news stories impacting Ares Management this week:

• Positive Sentiment: Analysts raised price targets. Barclays lifted its target from $139 to $151 and maintained an “overweight” rating, implying substantial upside. Keefe, Bruyette & Woods raised its target from $119 to $130 but kept a “market perform” rating, signaling a more cautious view. Barclays analyst rating Keefe, Bruyette & Woods analyst rating
• Positive Sentiment: Fundraising and asset growth remain strong. Ares raised more than $31 billion during the quarter, invested approximately $35 billion, and increased assets under management to roughly $690.6 billion. The firm also secured an $8 billion first close for its flagship credit fund and said it is on track for a record fundraising year, led by private credit and real assets. Ares flagship credit fund first close
• Positive Sentiment: Quarterly results modestly exceeded expectations. Third-quarter EPS was $1.26 versus the $1.25 consensus, while revenue of $1.43 billion topped the $1.24 billion estimate. Fee-related earnings reached $524.2 million, and Ares expects $300 million to $325 million of 2026 net realized performance income, including $115 million to $125 million in the fourth quarter. Ares third-quarter results
• Positive Sentiment: Credit activity and shareholder returns support sentiment. Ares closed approximately $6.3 billion of U.S. direct-lending commitments in the quarter and declared a $1.35 quarterly dividend, or $5.40 annualized, representing a yield of about 4.2%. The company is also participating with Blue Owl and KKR in financing AI data centers. Ares direct lending activity
• Negative Sentiment: Revenue and GAAP profitability declined year over year. Reported revenue fell 13.5% from the prior-year period, while GAAP net income was $85.3 million, or $0.21 per share. The modest earnings beat and management’s positive outlook may not fully offset concerns about slower markets and valuation risk.

About Ares Management

Ares Management Corporation NYSE: ARES is a global alternative investment manager that provides investment solutions across credit, private equity, real assets and secondaries. The company manages capital on behalf of institutional investors, pension funds, insurance companies, sovereign wealth funds, family offices and individual investors.

Its investment activities include direct lending and other credit strategies, control and minority investments in private companies, real estate and infrastructure investments, and secondary-market transactions involving private assets and fund interests.

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