UBS Group Has Lowered Expectations for Ares Management (NYSE:ARES) Stock Price

Key Points

• UBS Group lowered its Ares Management price target from $142 to $134 while maintaining a “neutral” rating, implying 15.82% potential upside from the prior close.
• Ares shares fell 2.1% to $115.70, below their 50-day moving average, although analysts overall maintain a “Moderate Buy” consensus with an average price target of $155.38.
• Ares exceeded quarterly expectations, reporting $1.29 in EPS versus a $1.28 consensus and $1.43 billion in revenue, up 5.8% year over year. Institutional investors and hedge funds own approximately 50.03% of the stock.

Ares Management (NYSE:ARES - Get Free Report) had its price objective decreased by research analysts at UBS Group from $142.00 to $134.00 in a note issued to investors on Tuesday, Benzinga reports. The brokerage presently has a "neutral" rating on the asset manager's stock. UBS Group's price objective indicates a potential upside of 15.82% from the stock's previous close.

Several other equities research analysts also recently issued reports on ARES. Citigroup reaffirmed a "market outperform" rating on shares of Ares Management in a research report on Friday. BMO Capital Markets increased their target price on Ares Management from $128.00 to $134.00 and gave the company a "market perform" rating in a research note on Monday, August 3rd. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $144.00 target price on shares of Ares Management in a research note on Monday, August 3rd. Citizens Jmp lowered their target price on Ares Management from $190.00 to $160.00 and set a "market outperform" rating on the stock in a report on Thursday, July 9th. Finally, Barclays dropped their price target on Ares Management from $140.00 to $139.00 and set an "overweight" rating on the stock in a research report on Thursday, July 9th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $155.38.

Ares Management Stock Down 2.1%

NYSE ARES traded down $2.45 during trading on Tuesday, hitting $115.70. 2,665,691 shares of the company traded hands, compared to its average volume of 2,932,796. Ares Management has a 12 month low of $95.80 and a 12 month high of $181.19. The business has a fifty day simple moving average of $132.17 and a 200 day simple moving average of $124.30. 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 company has a market capitalization of $38.21 billion, a P/E ratio of 53.07, a PEG ratio of 1.04 and a beta of 1.53.

Ares Management (NYSE:ARES - Get Free Report) last released its quarterly earnings results on Friday, July 31st. The asset manager reported $1.29 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.28 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 the consensus estimate of $1.27 billion. During the same quarter in the prior year, the company posted $1.03 EPS. The firm's revenue was up 5.8% on a year-over-year basis. As a group, sell-side analysts predict that Ares Management will post 5.90 EPS for the current year.

Institutional Investors Weigh In On Ares Management

Institutional investors have recently added to or reduced their stakes in the company. Osbon Capital Management LLC bought a new position in Ares Management in the 4th quarter valued at $32,000. Triumph Capital Management boosted its stake in Ares Management by 127.3% in the second quarter. Triumph Capital Management now owns 250 shares of the asset manager's stock worth $28,000 after purchasing an additional 140 shares in the last quarter. CoreCap Advisors LLC grew its holdings in shares of Ares Management by 178.0% during the third quarter. CoreCap Advisors LLC now owns 253 shares of the asset manager's stock worth $29,000 after purchasing an additional 162 shares during the last quarter. Wellington Altus USA Inc. bought a new stake in shares of Ares Management during the second quarter worth $35,000. Finally, Anchor Investment Management LLC bought a new stake in shares of Ares Management during the second quarter worth $38,000. 50.03% of the stock is owned by institutional investors and hedge funds.

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 serves institutional investors, including pension plans, insurance companies, endowments and foundations, as well as wealth-management clients and other investors.

Its investment businesses include direct lending and other private credit strategies, liquid credit, corporate private equity, real estate, infrastructure and secondary investments.

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