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

Key Points

• Analysts maintain a “Moderate Buy” consensus: Of 18 analysts covering Ares Management, 11 recommend buying, six rate it a hold, and one gives a strong-buy rating. The average 12-month price target is $160.47.
• Quarterly results exceeded expectations: Ares reported quarterly EPS of $1.29 versus the $1.28 consensus estimate, while revenue reached $1.43 billion, up 5.8% year over year and above forecasts.
• Expansion and shareholder returns remain key themes: Ares announced a quarterly dividend of $1.35 per share, representing a 4.3% yield, and formed a joint venture with PSP Investments to invest up to $2.4 billion in U.S. logistics real estate.

Ares Management Corporation (NYSE:ARES - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the eighteen ratings firms that are currently covering the firm, Marketbeat reports. Six analysts have rated the stock with a hold recommendation, eleven have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month target price among analysts that have updated their coverage on the stock in the last year is $160.4667.

Several analysts have issued reports on the company. Keefe, Bruyette & Woods upgraded Ares Management to a "hold" rating in a research note on Monday, July 20th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $144.00 target price on shares of Ares Management in a research report on Monday, August 3rd. Wall Street Zen downgraded Ares Management from a "hold" rating to a "sell" rating in a report on Saturday, July 4th. JPMorgan Chase & Co. upped their price target on Ares Management from $143.00 to $153.00 and gave the company an "overweight" rating in a research report on Monday, August 3rd. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Ares Management in a research note on Friday, August 21st.

Ares Management Stock Performance

Ares Management stock opened at $125.28 on Friday. Ares Management has a 52 week low of $95.80 and a 52 week high of $186.85. The company has a current ratio of 0.26, a quick ratio of 0.26 and a debt-to-equity ratio of 1.00. The stock has a market cap of $41.38 billion, a P/E ratio of 57.47, a price-to-earnings-growth ratio of 1.08 and a beta of 1.49. The stock has a 50 day moving average of $133.95 and a 200-day moving average of $122.87.

Ares Management (NYSE:ARES - Get Free Report) last posted its quarterly earnings data on Friday, July 31st. The asset manager reported $1.29 EPS for the quarter, beating analysts' consensus estimates of $1.28 by $0.01. The firm had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.27 billion. Ares Management had a net margin of 10.63% and a return on equity of 25.42%. The firm's revenue was up 5.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.03 EPS. On average, analysts expect that Ares Management will post 5.93 EPS for the current fiscal year.

Ares Management Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th will be issued a dividend of $1.35 per share. This represents a $5.40 dividend on an annualized basis and a dividend yield of 4.3%. The ex-dividend date of this dividend is Wednesday, September 16th. Ares Management's dividend payout ratio is 247.71%.

Key Stories Impacting Ares Management

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

• Positive Sentiment: New logistics real estate joint venture: Ares Real Estate and Canadian pension investor PSP Investments established a venture that can invest up to $2.4 billion in U.S. logistics properties. The partnership combines Ares’ vertically integrated logistics platform with PSP’s capital base and is expected to target high-conviction U.S. markets. The deal could increase assets under management and generate additional management and performance-fee opportunities for ARES. Ares and PSP Investments Establish Joint Venture to Invest up to $2.4 Billion in U.S. Logistics Real Estate
• Positive Sentiment: Alternative-credit facility expanded: Momentum Financial Services Group renewed its secured loan facility with Ares Alternative Credit funds and increased it by C$152.1 million to C$810 million, extending the facility through January 2029. The additional capacity will support Momentum’s Canadian growth and new products planned for Canada and the United States, indicating continued demand for Ares’ private-credit financing. Momentum Financial Services Group Renews Loan Facility with Ares
• Neutral Sentiment: Investor communications: Ares participated in Barclays’ Global Financial Services Conference, and a separate report reviewed its dividend profile. These items may provide context on strategy and shareholder returns, but the headlines do not identify a new forecast, dividend change, or other immediate catalyst. Ares Management Barclays Conference Transcript
• Neutral Sentiment: Former executive joins LNL Capital: Former Ares managing director Joel Tomlinson was appointed managing partner at LNL Capital. The move has no announced direct financial impact on ARES. LNL Capital Appoints Former Ares Managing Director

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Norges Bank bought a new position in Ares Management in the 4th quarter worth approximately $396,165,000. Geode Capital Management LLC raised its stake in 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 valued at $883,716,000 after acquiring an additional 1,963,460 shares in the last quarter. River Road Asset Management LLC boosted its position in Ares Management by 40,652.1% during the 4th quarter. River Road Asset Management LLC now owns 807,300 shares of the asset manager's stock worth $130,484,000 after acquiring an additional 805,319 shares during the period. Janus Henderson Group PLC boosted its position in Ares Management by 43.8% during the 1st quarter. Janus Henderson Group PLC now owns 1,653,078 shares of the asset manager's stock worth $180,343,000 after acquiring an additional 503,688 shares during the period. Finally, Advent International L.P. grew its stake in shares of Ares Management by 9,353.6% in the first quarter. Advent International L.P. now owns 428,720 shares of the asset manager's stock worth $46,773,000 after purchasing an additional 424,185 shares in the last quarter. 50.03% of the stock is owned by institutional investors and hedge funds.

About Ares Management

Ares Management Corporation is a global alternative investment manager that provides investment solutions across credit, private equity, real assets and secondaries. The company manages capital for institutional investors, financial intermediaries and individual investors through a range of private funds, public-market strategies and other investment vehicles.

Its investment activities include direct lending and other forms of private credit, corporate and growth-oriented private equity, real estate and infrastructure investments, and secondary-market transactions involving private investment interests.

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