Ares Management Corporation (NYSE:ARES) Stock Rated "Moderate Buy" by Wall Street Brokerages

Key Points

• Analysts rate Ares Management a “Moderate Buy”: Of 21 covering brokerages, 12 recommend buying or strong buying and nine recommend holding. The average 12-month price target is $146.21.
• Quarterly results beat estimates: Ares reported EPS of $1.26 versus $1.25 expected and revenue of $1.43 billion versus $1.24 billion expected, though revenue fell 13.5% year over year.
• The company declared a $1.35 quarterly dividend, equivalent to $5.40 annually and a 4.0% yield at the article’s cited share price.

Shares of Ares Management Corporation (NYSE:ARES - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the twenty-one brokerages that are presently covering the stock, Marketbeat Ratings reports. Nine analysts have rated the stock with a hold recommendation, eleven have given a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $146.21.

A number of brokerages have recently issued reports on ARES. Rothschild & Co Redburn lifted their price target on Ares Management from $134.00 to $138.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 4th. Weiss Ratings reiterated a "hold (c)" rating on shares of Ares Management in a report on Friday, August 21st. Bank of America decreased their price target on shares of Ares Management from $160.00 to $156.00 in a research note on Monday, October 5th. Oppenheimer upped their price target on shares of Ares Management from $151.00 to $162.00 and gave the stock an "outperform" rating in a report on Thursday, August 27th. Finally, Jefferies Financial Group dropped their target price on Ares Management from $144.00 to $132.00 and set a "hold" rating for the company in a report on Tuesday, October 6th.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of ARES. Triumph Capital Management raised its holdings in Ares Management by 127.3% in the second quarter. Triumph Capital Management now owns 250 shares of the asset manager's stock worth $28,000 after purchasing an additional 140 shares in the last quarter. CoreCap Advisors LLC grew its holdings in shares of Ares Management by 178.0% during 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 in the last quarter. Wellington Altus USA Inc. acquired a new stake in Ares Management during the 2nd quarter worth approximately $35,000. Anchor Investment Management LLC acquired a new stake in shares of Ares Management during the second quarter worth about $38,000. Finally, Root Financial Partners LLC purchased a new position in Ares Management in the 3rd quarter valued at about $41,000. Hedge funds and other institutional investors own 50.03% of the company's stock.

Ares Management Stock Up 0.3%

Shares of NYSE ARES opened at $134.06 on Friday. The stock has a market capitalization of $44.28 billion, a P/E ratio of 108.12, a PEG ratio of 1.25 and a beta of 1.49. Ares Management has a 52 week low of $95.80 and a 52 week high of $181.19. The stock's fifty day moving average is $125.14 and its 200 day moving average is $124.39. The company has a debt-to-equity ratio of 1.00, a quick ratio of 0.26 and a current ratio of 0.26.

Ares Management (NYSE:ARES - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The asset manager reported $1.26 earnings per share for the quarter, topping analysts' consensus estimates of $1.25 by $0.01. Ares Management had a net margin of 7.51% and a return on equity of 25.74%. The company had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.24 billion. During the same period in the previous year, the firm earned $1.15 EPS. The firm's quarterly revenue was down 13.5% on a year-over-year basis. Sell-side analysts forecast that Ares Management will post 5.70 earnings per share for the current fiscal year.

Ares Management Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Thursday, December 17th will be given a dividend of $1.35 per share. The ex-dividend date of this dividend is Thursday, December 17th. This represents a $5.40 dividend on an annualized basis and a dividend yield of 4.0%. Ares Management's dividend payout ratio is presently 435.48%.

About Ares Management

Ares Management Corporation is a global alternative investment manager that provides investment solutions across credit, private equity, real estate and infrastructure. Its strategies include direct lending, liquid and opportunistic credit, asset-based finance, private equity investing, and real estate debt and equity.

Founded in 1997, the firm serves institutional and individual investors through investment funds and other vehicles. Ares operates across North America, Europe and the Asia-Pacific region.

Co-founder Michael Arougheti is the company's chief executive officer.

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