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

Key Points

• Analysts maintain a “Moderate Buy” consensus on Ares Management, with 11 buy, six hold and one strong-buy rating among 18 analysts. The average 12-month price target is $158.93, compared with the reported share price of $124.54.
• Ares reported quarterly revenue of $1.40 billion, exceeding estimates, but earnings of $1.24 per share fell short of the $1.32 consensus. The company declared a $1.35 quarterly dividend, equivalent to a 4.3% annualized yield, although its payout ratio is elevated at 251.16%.
• Investors are watching upcoming second-quarter results and potential strategic developments, including a possible Leonard Green & Partners acquisition. Rising non-accruals in Ares’ $29 billion private-credit fund are also raising concerns about borrower credit quality and future earnings.

Ares Management Corporation (NYSE:ARES - Get Free Report) has been given an average recommendation of "Moderate Buy" by the eighteen brokerages that are currently covering the stock, MarketBeat reports. Six research analysts have rated the stock with a hold recommendation, eleven have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price target among analysts that have issued a report on the stock in the last year is $158.9333.

Several equities research analysts recently issued reports on the company. BMO Capital Markets boosted their price target on Ares Management from $125.00 to $128.00 and gave the company a "market perform" rating in a research note on Monday, July 13th. Royal Bank Of Canada restated an "outperform" rating on shares of Ares Management in a research note on Wednesday, April 29th. Barclays dropped their price objective on Ares Management from $140.00 to $139.00 and set an "overweight" rating for the company in a report on Thursday, July 9th. Keefe, Bruyette & Woods upgraded Ares Management to a "hold" rating in a research report on Monday, July 20th. Finally, Citizens Jmp reduced 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.

Ares Management Price Performance

Shares of Ares Management stock opened at $124.54 on Thursday. The company has a quick ratio of 0.23, a current ratio of 0.23 and a debt-to-equity ratio of 0.96. The stock has a market capitalization of $41.08 billion, a price-to-earnings ratio of 57.93, a price-to-earnings-growth ratio of 1.14 and a beta of 1.51. Ares Management has a twelve month low of $95.80 and a twelve month high of $195.26. The company has a 50-day simple moving average of $123.75 and a two-hundred day simple moving average of $124.30.

Ares Management (NYSE:ARES - Get Free Report) last announced its earnings results on Friday, May 1st. The asset manager reported $1.24 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.32 by ($0.08). Ares Management had a return on equity of 22.14% and a net margin of 10.54%.The business had revenue of $1.40 billion for the quarter, compared to analyst estimates of $1.28 billion. During the same quarter in the previous year, the company earned $1.09 EPS. Analysts forecast that Ares Management will post 5.98 EPS for the current year.

Ares Management Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th were paid a $1.35 dividend. This represents a $5.40 dividend on an annualized basis and a yield of 4.3%. The ex-dividend date of this dividend was Tuesday, June 16th. Ares Management's payout ratio is 251.16%.

More Ares Management News

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

• Positive Sentiment: Ares’ second-quarter results, scheduled for July 31, are expected to benefit from higher assets under management, management fees, revenue and favorable client inflows. Stronger fee-related earnings could support the shares if results meet or exceed forecasts. Ares Management Gears Up for Q2 Earnings: Here’s What to Expect
• Neutral Sentiment: Ares is reportedly exploring an acquisition of private-equity firm Leonard Green & Partners. The deal could broaden Ares’ private-equity capabilities and create additional fundraising and fee opportunities, but the financial terms, funding requirements and likelihood of completion remain uncertain. Ares, Leonard Green M&A talk makes sense
• Negative Sentiment: Non-accruals increased in Ares’ $29 billion private-credit fund, signaling deterioration among some borrowers and raising concerns about portfolio credit quality, potential valuation pressure and future earnings. The news is particularly sensitive because private credit is a major part of Ares’ investment-management platform. Ares $29 Billion Private Credit Fund Sees Uptick in Non-Accruals

Institutional Investors Weigh In On Ares Management

A number of large investors have recently bought and sold shares of ARES. Everhart Financial Group Inc. increased its holdings in Ares Management by 10.4% in the 2nd quarter. Everhart Financial Group Inc. now owns 6,033 shares of the asset manager's stock valued at $672,000 after buying an additional 568 shares during the period. Valeo Financial Advisors LLC lifted its holdings in shares of Ares Management by 6.6% during the 2nd quarter. Valeo Financial Advisors LLC now owns 13,800 shares of the asset manager's stock worth $1,536,000 after acquiring an additional 857 shares during the period. Czech National Bank lifted its holdings in shares of Ares Management by 7.0% during the 2nd quarter. Czech National Bank now owns 60,038 shares of the asset manager's stock worth $6,683,000 after acquiring an additional 3,932 shares during the period. PensionDanmark Pensionsforsikringsaktieselskab lifted its holdings in shares of Ares Management by 10.2% during the 2nd quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 30,330 shares of the asset manager's stock worth $3,376,000 after acquiring an additional 2,800 shares during the period. Finally, Hamlin Capital Management LLC boosted its position in shares of Ares Management by 1.5% during the 2nd quarter. Hamlin Capital Management LLC now owns 959,634 shares of the asset manager's stock worth $106,817,000 after acquiring an additional 14,333 shares in the last quarter. 50.03% of the stock is currently owned by institutional investors and hedge funds.

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.

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