Ares Management (NYSE:ARES) Upgraded at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods upgraded Ares Management to a hold rating, adding to a mixed but generally positive analyst outlook. The stock now has a consensus rating of Moderate Buy with an average price target of $158.93.
• Ares Management recently reported quarterly earnings of $1.24 per share, which missed analyst expectations of $1.32, though revenue came in ahead of estimates at $1.40 billion.
• The stock opened at $120.83 and has a market cap of about $39.86 billion; institutional investors remain heavily involved, with hedge funds and institutions owning 50.03% of shares.

Ares Management (NYSE:ARES - Get Free Report) was upgraded by equities researchers at Keefe, Bruyette & Woods to a "hold" rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other brokerages have also issued reports on ARES. Weiss Ratings reissued a "hold (c)" rating on shares of Ares Management in a research report on Tuesday, May 26th. Royal Bank Of Canada reiterated an "outperform" rating on shares of Ares Management in a report on Wednesday, April 29th. Oppenheimer cut their price objective on shares of Ares Management from $146.00 to $140.00 and set an "outperform" rating on the stock in a research report on Friday, July 17th. Citigroup restated an "outperform" rating on shares of Ares Management in a report on Thursday, July 9th. Finally, Morgan Stanley set a $160.00 target price on shares of Ares Management in a research report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $158.93.

Ares Management Stock Performance

ARES opened at $120.83 on Monday. The business's 50-day moving average price is $123.64 and its two-hundred day moving average price is $126.24. Ares Management has a 1 year low of $95.80 and a 1 year high of $195.26. The company has a market capitalization of $39.86 billion, a price-to-earnings ratio of 56.20, a P/E/G ratio of 1.08 and a beta of 1.51. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.23 and a quick ratio of 0.23.

Ares Management (NYSE:ARES - Get Free Report) last issued its quarterly earnings results on Friday, May 1st. The asset manager reported $1.24 EPS for the quarter, missing analysts' consensus estimates of $1.32 by ($0.08). The firm had revenue of $1.40 billion during the quarter, compared to the consensus estimate of $1.28 billion. Ares Management had a net margin of 10.54% and a return on equity of 22.14%. During the same quarter last year, the firm earned $1.09 earnings per share. Equities analysts expect that Ares Management will post 5.99 EPS for the current fiscal year.

Institutional Investors Weigh In On Ares Management

Several large investors have recently made changes to their positions in the stock. Vanguard Group Inc. increased its holdings in Ares Management by 20.2% during the fourth quarter. Vanguard Group Inc. now owns 26,050,425 shares of the asset manager's stock worth $4,210,530,000 after buying an additional 4,373,955 shares during the last quarter. Norges Bank bought a new position in shares of Ares Management in the 4th quarter valued at about $396,165,000. Geode Capital Management LLC increased its stake in shares of Ares Management by 55.7% during the 4th quarter. Geode Capital Management LLC now owns 5,489,004 shares of the asset manager's stock worth $883,716,000 after purchasing an additional 1,963,460 shares during the last quarter. Massachusetts Financial Services Co. MA increased its stake in shares of Ares Management by 26.3% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 5,705,599 shares of the asset manager's stock worth $922,196,000 after purchasing an additional 1,187,174 shares during the last quarter. Finally, River Road Asset Management LLC raised its holdings in shares of Ares Management by 40,652.1% in the 4th quarter. River Road Asset Management LLC now owns 807,300 shares of the asset manager's stock valued at $130,484,000 after purchasing an additional 805,319 shares during the period. Institutional investors and hedge funds 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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