Ares Management (NYSE:ARES) Stock Price Expected to Rise, Barclays Analyst Says

Key Points

• Barclays raised its Ares Management price target to $151 from $139 and maintained an “overweight” rating, implying 19.59% potential upside. MarketBeat’s analyst consensus is “Moderate Buy,” with a $148.89 average price target.
• Ares exceeded quarterly expectations, reporting adjusted EPS of $1.26 versus $1.25 expected and revenue of $1.43 billion versus $1.24 billion expected. However, revenue declined 13.5% year over year, and GAAP net income was $85.3 million.
• Institutional ownership remains substantial at 50.03%, while several funds increased or initiated positions. Shares closed at $126.27, well below their 52-week high of $181.19.

Ares Management (NYSE:ARES - Get Free Report) had its target price boosted by analysts at Barclays from $139.00 to $151.00 in a report released on Friday, Benzinga reports. The brokerage currently has an "overweight" rating on the asset manager's stock. Barclays's price objective points to a potential upside of 19.59% from the stock's previous close.

Several other equities analysts also recently issued reports on ARES. BMO Capital Markets decreased their price objective on shares of Ares Management from $134.00 to $130.00 and set a "market perform" rating on the stock in a report on Tuesday. Wells Fargo & Company initiated coverage on Ares Management in a report on Friday, October 2nd. They set an "overweight" rating and a $136.00 price target on the stock. Wall Street Zen lowered shares of Ares Management from a "hold" rating to a "sell" rating in a report on Saturday, July 4th. Piper Sandler cut their price target on shares of Ares Management from $150.00 to $143.00 and set an "overweight" rating on the stock in a research note on Monday, October 19th. Finally, Bank of America cut their price target on Ares Management from $160.00 to $156.00 in a report on Monday, October 5th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $148.89.

Ares Management Stock Performance

NYSE ARES traded down $1.20 on Friday, hitting $126.27. 154,471 shares of the company's stock traded hands, compared to its average volume of 2,883,927. The company has a current ratio of 0.26, a quick ratio of 0.26 and a debt-to-equity ratio of 1.00. The firm's 50-day moving average price is $126.24 and its two-hundred day moving average price is $125.49. Ares Management has a 1-year low of $95.80 and a 1-year high of $181.19. The firm has a market capitalization of $41.70 billion, a PE ratio of 58.17, a P/E/G ratio of 1.12 and a beta of 1.53.

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

Institutional Investors Weigh In On Ares Management

A number of hedge funds and other institutional investors have recently bought and sold shares of ARES. Renaissance Technologies LLC purchased a new position in Ares Management during the 1st quarter valued at about $9,350,000. Junto Capital Management LP acquired a new stake in shares of Ares Management during the 2nd quarter worth about $40,084,000. National Pension Service boosted its holdings in shares of Ares Management by 18.6% during the second quarter. National Pension Service now owns 367,433 shares of the asset manager's stock worth $40,899,000 after purchasing an additional 57,641 shares during the last quarter. Bank of Nova Scotia lifted its holdings in shares of Ares Management by 156.1% during the 1st quarter. Bank of Nova Scotia now owns 79,469 shares of the asset manager's stock worth $8,671,000 after acquiring an additional 48,438 shares during the period. Finally, Hamlin Capital Management LLC boosted its holdings 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. Institutional investors and hedge funds own 50.03% of the company's stock.

Key Stories Impacting Ares Management

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

• Positive Sentiment: Q3 earnings beat estimates. Ares reported adjusted earnings of $1.26 per share versus the $1.25 consensus estimate, while revenue of $1.43 billion exceeded expectations of $1.24 billion. EPS increased from $1.15 a year earlier. Ares Management third-quarter earnings report
• Positive Sentiment: Assets and fee-related earnings continued to grow. Assets under management reached approximately $690.6 billion, supported by capital inflows and higher management fees. Fee-related earnings totaled $524.2 million, and the company raised more than $31 billion in gross commitments during the quarter. Ares Q3 earnings and AUM report
• Positive Sentiment: Private-credit fundraising and origination activity were strong. Ares closed approximately $6.3 billion of U.S. direct-lending commitments across 55 transactions in Q3 and $43.4 billion over the preceding 12 months. It also secured an $8 billion first close for its flagship credit fund, reinforcing expectations for a record fundraising year. Ares direct lending activity announcement
• Positive Sentiment: Management expects additional performance-related revenue. Ares forecast $300 million to $325 million of 2026 net realized performance income, including $115 million to $125 million in fourth-quarter fee-related performance revenue. The company also declared a quarterly dividend of $1.35 per share, or $5.40 annualized. Ares performance income outlook
• Neutral Sentiment: Technical momentum has improved. Shares moved above the 200-day moving average, a potentially constructive signal, although the stock remains well below its 52-week high of $181.19. Ares stock moving average report
• Negative Sentiment: Reported profitability showed some weakness. GAAP net income attributable to Ares was $85.3 million, or $0.21 per share, and revenue declined 13.5% year over year. Management also acknowledged a slower market environment, leaving investors attentive to fundraising durability, private-credit risks and the stock’s elevated price-to-earnings ratio.

Ares Management Company Profile

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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