Ares Management Corporation (NYSE:ARES) Stock Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Ares Management received a “Moderate Buy” consensus rating from 19 analysts, with 12 buy ratings, six holds and one strong buy. The average 12-month price target is $156.25.
• The company slightly beat quarterly earnings expectations, reporting $1.29 in EPS versus the $1.28 consensus, while revenue rose 5.8% year over year to $1.43 billion.
• Ares declared a quarterly dividend of $1.35, equivalent to $5.40 annually and a 4.6% yield; institutional investors own approximately 50.03% of the company.

Ares Management Corporation (NYSE:ARES - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the nineteen brokerages that are covering the company, MarketBeat Ratings reports. Six equities research analysts have rated the stock with a hold recommendation, twelve have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $156.25.

A number of brokerages recently issued reports on ARES. Royal Bank Of Canada upped their price objective on shares of Ares Management from $162.00 to $168.00 and gave the stock an "outperform" rating in a report on Monday, August 3rd. Wells Fargo & Company assumed coverage on Ares Management in a report on Friday, October 2nd. They set an "overweight" rating and a $136.00 target price on the stock. Morgan Stanley set a $160.00 price target on Ares Management in a research report on Tuesday, July 21st. Keefe, Bruyette & Woods raised Ares Management to a "hold" rating in a research report on Monday, July 20th. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $144.00 price target on shares of Ares Management in a research note on Monday, August 3rd.

Ares Management Trading Up 0.8%

Shares of NYSE ARES opened at $118.20 on Tuesday. Ares Management has a one year low of $95.80 and a one year high of $181.19. The firm has a market capitalization of $39.04 billion, a PE ratio of 54.22, a PEG ratio of 1.04 and a beta of 1.53. 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 business has a 50-day moving average price of $132.17 and a two-hundred day moving average price of $124.30.

Ares Management (NYSE:ARES - Get Free Report) last announced 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. Ares Management had a net margin of 10.63% and a return on equity of 25.42%. The firm had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.27 billion. During the same period in the previous year, the firm posted $1.03 earnings per share. The firm's revenue was up 5.8% on a year-over-year basis. As a group, analysts predict that Ares Management will post 5.90 earnings per share for the current fiscal year.

Ares Management Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th were issued a $1.35 dividend. This represents a $5.40 annualized dividend and a yield of 4.6%. The ex-dividend date was Wednesday, September 16th. Ares Management's payout ratio is 247.71%.

Institutional Investors Weigh In On Ares Management

A number of large investors have recently added to or reduced their stakes in ARES. GK Wealth Management LLC acquired a new position in Ares Management during the third quarter valued at approximately $51,000. Wedmont Private Capital raised its position in shares of Ares Management by 17.0% in the third quarter. Wedmont Private Capital now owns 2,894 shares of the asset manager's stock valued at $336,000 after purchasing an additional 420 shares during the period. GAMMA Investing LLC raised its position in shares of Ares Management by 85.3% in the third quarter. GAMMA Investing LLC now owns 3,479 shares of the asset manager's stock valued at $404,000 after purchasing an additional 1,601 shares during the period. CoreCap Advisors LLC lifted its stake in shares of Ares Management by 178.0% in the third quarter. CoreCap Advisors LLC now owns 253 shares of the asset manager's stock worth $29,000 after buying an additional 162 shares during the last quarter. Finally, Hamlin Capital Management LLC lifted its stake in shares of Ares Management by 6.6% in the third quarter. Hamlin Capital Management LLC now owns 1,022,899 shares of the asset manager's stock worth $118,830,000 after buying an additional 63,265 shares during the last quarter. Institutional investors own 50.03% of the company's stock.

Ares Management Company Profile

Ares Management Corporation NYSE: ARES is a global alternative investment manager that provides investment solutions across credit, private equity, real assets and secondaries. The company serves institutional investors, including pension plans, insurance companies, endowments and foundations, as well as wealth-management clients and other investors.

Its investment businesses include direct lending and other private credit strategies, liquid credit, corporate private equity, real estate, infrastructure and secondary investments.

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