Ares Management (NYSE:ARES) Given New $190.00 Price Target at Citizens Jmp

Key Points

• Citizens Jmp lowered its price target on Ares Management from $205 to $190 but kept a "market outperform" rating; that target implies about a 58.41% upside from the company's current price, while the consensus across analysts is a "Moderate Buy" with an average target of $166.73.
• Ares missed quarterly EPS expectations ($1.45 vs. $1.71) but beat revenue estimates ($1.50B vs. $1.38B), and the stock trades at a high P/E of 70.97 with a market cap near $39.5 billion.
• Company insiders recently bought shares (Director Judy D. Olian 480 shares; Director Ashish Bhutani 10,000 shares), and institutional investors now own about 50% of the stock while insiders hold 0.52%.

Ares Management (NYSE:ARES - Get Free Report) had its price target reduced by equities research analysts at Citizens Jmp from $205.00 to $190.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a "market outperform" rating on the asset manager's stock. Citizens Jmp's price target suggests a potential upside of 58.41% from the company's current price.

Several other research analysts have also weighed in on the company. Wolfe Research set a $210.00 target price on Ares Management and gave the stock an "outperform" rating in a research report on Wednesday, January 7th. Royal Bank Of Canada reduced their price target on Ares Management from $180.00 to $173.00 and set an "outperform" rating for the company in a report on Tuesday, February 24th. Weiss Ratings reiterated a "hold (c)" rating on shares of Ares Management in a report on Monday, December 29th. BMO Capital Markets reduced their price target on Ares Management from $140.00 to $112.00 and set a "market perform" rating for the company in a report on Tuesday, March 24th. Finally, UBS Group set a $148.00 price target on Ares Management in a report on Friday, February 20th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $166.73.

Ares Management Price Performance

ARES opened at $119.94 on Wednesday. The stock has a fifty day moving average of $112.76 and a 200-day moving average of $141.06. The firm has a market capitalization of $39.52 billion, a P/E ratio of 70.97, a PEG ratio of 1.05 and a beta of 1.52. Ares Management has a 12-month low of $95.80 and a 12-month high of $195.26. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.86.

Ares Management (NYSE:ARES - Get Free Report) last released its earnings results on Thursday, February 5th. The asset manager reported $1.45 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.71 by ($0.26). Ares Management had a net margin of 9.41% and a return on equity of 19.04%. The business had revenue of $1.50 billion during the quarter, compared to analysts' expectations of $1.38 billion. During the same quarter in the previous year, the company earned $0.55 EPS. Equities analysts forecast that Ares Management will post 6.25 EPS for the current fiscal year.

Insider Activity

In related news, Director Judy D. Olian bought 480 shares of the business's stock in a transaction on Friday, February 20th. The shares were bought at an average cost of $124.43 per share, for a total transaction of $59,726.40. Following the completion of the acquisition, the director directly owned 29,734 shares in the company, valued at approximately $3,699,801.62. This represents a 1.64% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Ashish Bhutani bought 10,000 shares of the business's stock in a transaction on Friday, February 6th. The shares were bought at an average price of $126.61 per share, for a total transaction of $1,266,100.00. Following the completion of the acquisition, the director owned 34,071 shares of the company's stock, valued at approximately $4,313,729.31. This represents a 41.54% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.52% of the stock is owned by company insiders.

Hedge Funds Weigh In On Ares Management

Several institutional investors have recently bought and sold shares of the stock. Vulcan Value Partners LLC grew its position in Ares Management by 10.6% during the third quarter. Vulcan Value Partners LLC now owns 1,350,249 shares of the asset manager's stock worth $215,785,000 after buying an additional 129,368 shares in the last quarter. Quilter Plc grew its position in Ares Management by 5.6% during the fourth quarter. Quilter Plc now owns 704,069 shares of the asset manager's stock worth $113,799,000 after buying an additional 37,366 shares in the last quarter. CI Investments Inc. boosted its holdings in Ares Management by 35,425.5% during the third quarter. CI Investments Inc. now owns 221,679 shares of the asset manager's stock valued at $35,444,000 after purchasing an additional 221,055 shares in the last quarter. Hudson Bay Capital Management LP boosted its holdings in Ares Management by 1,903.9% during the third quarter. Hudson Bay Capital Management LP now owns 60,717 shares of the asset manager's stock valued at $9,708,000 after purchasing an additional 57,687 shares in the last quarter. Finally, Dynamic Technology Lab Private Ltd acquired a new stake in Ares Management during the third quarter valued at approximately $2,971,000. 50.03% of the stock is currently owned by institutional investors.

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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