Ares Management (NYSE:ARES) Shares Break Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Ares Management shares broke above their 200-day moving average, trading as high as $128.96, while the stock gained about 3%.
• The company delivered a modest Q3 earnings beat, with adjusted EPS of $1.26 and revenue of $1.43 billion, while assets under management reached approximately $690.6 billion and fundraising remained strong.
• Despite positive growth indicators and a reaffirmed $1.35 quarterly dividend, revenue declined 13.5% year over year. Analysts maintain a “Moderate Buy” consensus with a $148.26 target price, though some firms recently lowered targets or ratings.

Ares Management Corporation (NYSE:ARES - Get Free Report)'s share price passed above its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $125.49 and traded as high as $128.96. Ares Management shares last traded at $127.5720, with a volume of 2,391,909 shares trading hands.

Ares Management News Summary

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

• Positive Sentiment: Q3 earnings beat expectations: Ares reported adjusted earnings of $1.26 per share, slightly above the $1.25 consensus estimate, while revenue of $1.43 billion exceeded expectations of $1.24 billion. Earnings also rose from $1.15 per share a year earlier. Ares Management Corporation Reports Third Quarter 2026 Results
• Positive Sentiment: Assets and fundraising remained strong: Assets under management reached approximately $690.6 billion, supported by capital inflows and higher management fees. Ares raised more than $31 billion in gross commitments during the quarter and reportedly secured an $8 billion first close for its flagship credit fund, reinforcing the growth outlook for fee-related earnings. Ares Management Q3 Earnings Beat Estimates, AUM Rises Year Over Year
• Positive Sentiment: Direct lending activity was substantial: Ares closed approximately $6.3 billion of U.S. direct-lending commitments across 55 transactions in the quarter and $43.4 billion over the prior 12 months, highlighting continued deployment opportunities in private credit. Ares Management Announces Third Quarter 2026 U.S. Direct Lending Origination Activity
• Positive Sentiment: Management pushed back on redemption concerns: CEO Michael Arougheti said the private-credit redemption narrative is misunderstood, potentially easing investor concerns about withdrawals and liquidity pressures in private-market funds. Ares CEO Discusses Private Credit Redemptions
• Neutral Sentiment: Dividend reaffirmed: Ares declared a $1.35 quarterly dividend, or $5.40 annualized, implying a yield of roughly 4.2%. The dividend is payable December 31 to shareholders of record on December 17.
• Negative Sentiment: Revenue declined year over year: Despite the quarterly beat, reported revenue was down 13.5% from the prior-year period, and GAAP net income attributable to Ares was $85.3 million, or $0.21 per share. These figures may temper enthusiasm about the headline results.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Weiss Ratings restated a "hold (c)" rating on shares of Ares Management in a research note on Friday, August 21st. TD Cowen decreased their target price on Ares Management from $163.00 to $159.00 and set a "buy" rating for the company in a research report on Monday, October 12th. Barclays lowered their price target on Ares Management from $140.00 to $139.00 and set an "overweight" rating for the company in a report on Thursday, July 9th. Wall Street Zen lowered Ares Management from a "hold" rating to a "sell" rating in a research report on Saturday, July 4th. Finally, BMO Capital Markets dropped their price target on Ares Management from $134.00 to $130.00 and set a "market perform" rating on the stock in a research report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, Ares Management has an average rating of "Moderate Buy" and a consensus target price of $148.26.

Ares Management Trading Up 3.0%

The stock has a market cap of $42.13 billion, a price-to-earnings ratio of 58.52, a price-to-earnings-growth ratio of 1.12 and a beta of 1.53. The firm's 50 day moving average is $126.24 and its two-hundred day moving average is $125.49. The company has a quick ratio of 0.26, a current ratio of 0.26 and a debt-to-equity ratio of 1.00.

Ares Management (NYSE:ARES - Get Free Report) last issued its earnings results on Thursday, October 29th. The asset manager reported $1.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.25 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 analysts' expectations of $1.24 billion. During the same quarter last year, the company posted $1.15 earnings per share. Ares Management's revenue was down 13.5% on a year-over-year basis. Equities analysts anticipate that Ares Management Corporation will post 5.80 EPS for the current year.

Ares Management Announces Dividend

The business 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. This represents a $5.40 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date is Thursday, December 17th. Ares Management's dividend payout ratio is presently 247.71%.

Institutional Trading of Ares Management

Several hedge funds have recently made changes to their positions in the stock. Principal Financial Group Inc. grew its position in Ares Management by 4.4% in the 1st quarter. Principal Financial Group Inc. now owns 4,009,291 shares of the asset manager's stock worth $437,417,000 after purchasing an additional 169,598 shares during the last quarter. Vulcan Value Partners LLC increased its stake in shares of Ares Management by 12.5% in the second quarter. Vulcan Value Partners LLC now owns 1,902,580 shares of the asset manager's stock valued at $211,776,000 after purchasing an additional 211,404 shares during the period. Janus Henderson Group PLC increased its stake in shares of Ares Management by 43.8% in the first quarter. Janus Henderson Group PLC now owns 1,653,078 shares of the asset manager's stock valued at $180,343,000 after purchasing an additional 503,688 shares during the period. Curated Wealth Partners LLC raised its holdings in shares of Ares Management by 968.3% during the third quarter. Curated Wealth Partners LLC now owns 1,450,854 shares of the asset manager's stock valued at $168,546,000 after buying an additional 1,315,043 shares during the last quarter. Finally, Hamlin Capital Management LLC raised its holdings in shares of Ares Management by 6.6% during the third quarter. Hamlin Capital Management LLC now owns 1,022,899 shares of the asset manager's stock valued at $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 manages capital on behalf of institutional investors, pension funds, insurance companies, sovereign wealth funds, family offices and individual investors.

Its investment activities include direct lending and other credit strategies, control and minority investments in private companies, real estate and infrastructure investments, and secondary-market transactions involving private assets and fund interests.

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