Ares Management's (ARES) Outperform Rating Reaffirmed at Oppenheimer

Key Points

• Oppenheimer reiterated an Outperform rating and trimmed its price target to $146 (from $147), implying roughly a 20.5% upside from the current share price.
• Street coverage is mixed but generally positive — MarketBeat's consensus is a Moderate Buy with an average price target of $166.06, based on one Strong Buy, 13 Buy, four Hold and one Sell ratings.
• Ares missed EPS for the quarter ($1.24 vs. $1.32 estimate) but beat on revenue ($1.36B), and insiders boosted holdings (director Ashish Bhutani bought 10,000 shares), with insiders owning about 0.52%.

Ares Management (NYSE:ARES - Get Free Report)'s stock had its "outperform" rating reiterated by equities researchers at Oppenheimer in a research note issued to investors on Monday,Benzinga reports. They presently have a $146.00 target price on the asset manager's stock, down from their previous target price of $147.00. Oppenheimer's price target would indicate a potential upside of 20.50% from the company's current price.

Other equities research analysts have also recently issued research reports about the stock. Zacks Research cut shares of Ares Management from a "hold" rating to a "strong sell" rating in a report on Monday, April 6th. Deutsche Bank Aktiengesellschaft upgraded shares of Ares Management from a "hold" rating to a "buy" rating and dropped their target price for the stock from $182.00 to $155.00 in a report on Friday, February 6th. TD Cowen restated a "buy" rating on shares of Ares Management in a report on Wednesday, January 14th. Royal Bank Of Canada restated an "outperform" rating on shares of Ares Management in a report on Wednesday, April 29th. Finally, UBS Group set a $148.00 target price on shares of Ares Management in a report on Friday, February 20th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $166.06.

Ares Management Stock Up 1.8%

Shares of NYSE ARES traded up $2.16 on Monday, reaching $121.16. 2,292,478 shares of the company's stock traded hands, compared to its average volume of 3,713,475. Ares Management has a 12 month low of $95.80 and a 12 month high of $195.26. The business's 50 day simple moving average is $110.17 and its two-hundred day simple moving average is $139.48. The company has a market cap of $39.92 billion, a price-to-earnings ratio of 56.35, a price-to-earnings-growth ratio of 1.08 and a beta of 1.50. 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 announced its earnings results on Friday, May 1st. The asset manager reported $1.24 earnings per share for the quarter, missing analysts' consensus estimates of $1.32 by ($0.08). Ares Management had a net margin of 10.54% and a return on equity of 22.02%. The business had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.28 billion. During the same period in the prior year, the business posted $1.09 EPS. As a group, equities research analysts forecast that Ares Management will post 6.09 EPS for the current fiscal year.

Insider Activity

In other news, Director Ashish Bhutani acquired 10,000 shares of the firm's stock in a transaction dated Friday, February 6th. The shares were acquired at an average cost of $126.61 per share, with a total value of $1,266,100.00. Following the acquisition, the director directly owned 34,071 shares of the company's stock, valued at approximately $4,313,729.31. The trade was a 41.54% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Judy D. Olian bought 480 shares of the stock in a transaction dated Friday, February 20th. The shares were purchased at an average price of $124.43 per share, with a total value of $59,726.40. Following the completion of the transaction, the director directly owned 29,734 shares in the company, valued at approximately $3,699,801.62. The trade was a 1.64% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 0.52% of the company's stock.

Institutional Trading of Ares Management

Several hedge funds have recently made changes to their positions in ARES. Osbon Capital Management LLC bought a new stake in Ares Management during the fourth quarter worth approximately $32,000. Redmont Wealth Advisors LLC bought a new stake in Ares Management during the third quarter worth approximately $40,000. Atlantic Edge Private Wealth Management LLC bought a new stake in Ares Management during the fourth quarter worth approximately $42,000. Elyxium Wealth LLC bought a new stake in Ares Management during the fourth quarter worth approximately $42,000. Finally, Summit Securities Group LLC bought a new stake in Ares Management during the fourth quarter worth approximately $49,000. 50.03% of the stock is currently owned by hedge funds and other institutional investors.

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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