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

Key Points

• Ares Management has a “Moderate Buy” consensus rating from 18 analysts, with 11 buy ratings, six holds, and one strong buy; the average 12-month price target is $159.73.
• The asset manager exceeded quarterly expectations, reporting $1.29 in EPS versus $1.28 expected and $1.43 billion in revenue versus $1.27 billion estimated. Revenue increased 5.8% year over year.
• Ares declared a quarterly dividend of $1.35, equivalent to $5.40 annually and a 3.8% yield, though its payout ratio is elevated at 247.71%.

Ares Management Corporation (NYSE:ARES - Get Free Report) has earned an average rating of "Moderate Buy" from the eighteen brokerages that are currently covering the firm, Marketbeat Ratings reports. Six research analysts have rated the stock with a hold recommendation, eleven have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $159.7333.

Several analysts have weighed in on ARES shares. 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. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $144.00 target price on shares of Ares Management in a report on Monday, August 3rd. Oppenheimer raised their price target on shares of Ares Management from $140.00 to $151.00 and gave the stock an "outperform" rating in a research note on Monday, August 3rd. Citigroup reiterated a "market outperform" rating on shares of Ares Management in a report on Monday, August 3rd. Finally, Wall Street Zen lowered shares of Ares Management from a "hold" rating to a "sell" rating in a research report on Saturday, July 4th.

Ares Management Stock Down 0.0%

Ares Management stock opened at $141.21 on Monday. The stock has a 50 day moving average of $127.76 and a two-hundred day moving average of $121.71. Ares Management has a twelve month low of $95.80 and a twelve month high of $186.85. The stock has a market capitalization of $46.64 billion, a price-to-earnings ratio of 64.78, a PEG ratio of 1.22 and a beta of 1.49. The company has a current ratio of 0.26, a quick ratio of 0.26 and a debt-to-equity ratio of 1.00.

Ares Management (NYSE:ARES - Get Free Report) last issued its quarterly earnings results on Friday, July 31st. The asset manager reported $1.29 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.28 by $0.01. Ares Management had a net margin of 10.63% and a return on equity of 25.42%. The business had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.27 billion. During the same period in the previous year, the business posted $1.03 earnings per share. The business's revenue was up 5.8% compared to the same quarter last year. As a group, research analysts expect that Ares Management will post 5.94 earnings per share for the current year.

Ares Management Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th will be paid a $1.35 dividend. This represents a $5.40 annualized dividend and a yield of 3.8%. The ex-dividend date of this dividend is Wednesday, September 16th. Ares Management's payout ratio is presently 247.71%.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Ares Management by 5.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,344 shares of the asset manager's stock valued at $197,000 after acquiring an additional 70 shares in the last quarter. Wedbush Securities Inc. raised its stake in shares of Ares Management by 4.2% in the fourth quarter. Wedbush Securities Inc. now owns 2,030 shares of the asset manager's stock worth $328,000 after acquiring an additional 81 shares during the last quarter. First Manhattan CO. LLC. lifted its position in shares of Ares Management by 0.5% during the fourth quarter. First Manhattan CO. LLC. now owns 17,634 shares of the asset manager's stock worth $2,850,000 after purchasing an additional 89 shares in the last quarter. Root Financial Partners LLC lifted its position in shares of Ares Management by 17.8% during the fourth quarter. Root Financial Partners LLC now owns 642 shares of the asset manager's stock worth $104,000 after purchasing an additional 97 shares in the last quarter. Finally, Marks Group Wealth Management Inc grew its stake in shares of Ares Management by 7.3% during the fourth quarter. Marks Group Wealth Management Inc now owns 1,522 shares of the asset manager's stock valued at $246,000 after purchasing an additional 103 shares during the last quarter. Hedge funds and other institutional investors own 50.03% of the company's stock.

About Ares Management

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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