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

Ares Management Corporation (NYSE:ARES) has been assigned a consensus rating of “Moderate Buy” from the nineteen brokerages that are covering the stock, 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 1-year target price among brokers that have issued ratings on the stock in the last year is $154.25.

Several equities research analysts recently weighed in on the stock. Citizens Jmp reduced their price target on shares of Ares Management from $190.00 to $160.00 and set a “market outperform” rating for the company in a research report on Thursday, July 9th. BMO Capital Markets upped their price objective on Ares Management from $128.00 to $134.00 and gave the company a “market perform” rating in a research report on Monday, August 3rd. TD Cowen cut their target price on Ares Management from $163.00 to $159.00 and set a “buy” rating on the stock in a research note on Monday, October 12th. Oppenheimer lifted their target price on Ares Management from $151.00 to $162.00 and gave the stock an “outperform” rating in a report on Thursday, August 27th. Finally, Piper Sandler decreased their price target on Ares Management from $150.00 to $143.00 and set an “overweight” rating for the company in a research note on Monday.

Trending Headlines about Ares Management

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

• Positive Sentiment: Ares agreed to acquire Infinity Transportation from KKR for approximately $2.9 billion. The transaction gives Ares Infrastructure Equity and Ares Insurance Solutions funds control of a large railcar and intermodal-equipment lessor. The asset could add scale, recurring leasing cash flows and future fee-generating assets to Ares’ infrastructure and insurance platforms. Closing remains subject to regulatory approvals and customary conditions. KKR to Sell Infinity Transportation to Ares for $2.9 Billion
• Positive Sentiment: Ares also acquired a stake in Statera’s 1.9-gigawatt UK energy portfolio. The deal strengthens Ares’ exposure to power and energy infrastructure, areas that may benefit from rising electricity demand and the energy transition. Ares Acquires Stake in Statera’s 1.9 GW UK Energy Portfolio
• Neutral Sentiment: Reports say Ares has hired advisers for a potential bid related to Rio Tinto’s approximately $7 billion auction. The report highlights Ares’ ambitions in large-scale credit and infrastructure transactions, but it is not a confirmed acquisition and could require substantial capital. Global credit manager Ares hires bankers for Rio Tinto’s $7b auction
• Negative Sentiment: Piper Sandler lowered its ARES price target to $143 from $150, although it retained an “overweight” rating. The reduced target may weigh on sentiment and suggests lower near-term valuation expectations, even though it still implies significant upside from the current trading level.

Ares Management Stock Up 0.5%

ARES stock opened at $112.87 on Tuesday. The business has a 50 day moving average of $129.61 and a 200 day moving average of $124.51. The firm has a market cap of $37.28 billion, a PE ratio of 51.77, a price-to-earnings-growth ratio of 1.01 and a beta of 1.53. Ares Management has a twelve month low of $95.80 and a twelve month high of $181.19. 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) last released its earnings results on Friday, July 31st. The asset manager reported $1.29 EPS for the quarter, topping the consensus estimate of $1.28 by $0.01. Ares Management had a return on equity of 25.42% and a net margin of 10.63%. The business 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 company posted $1.03 earnings per share. The company’s revenue for the quarter was up 5.8% compared to the same quarter last year. On average, research analysts forecast that Ares Management will post 5.80 EPS for the current fiscal year.

Ares Management Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th were given a dividend of $1.35 per share. The ex-dividend date of this dividend was Wednesday, September 16th. This represents a $5.40 annualized dividend and a dividend yield of 4.8%. Ares Management’s dividend payout ratio (DPR) is 247.71%.

Institutional Trading of Ares Management

A number of institutional investors have recently made changes to their positions in the stock. Principal Financial Group Inc. boosted its stake in Ares Management by 4.4% during the first quarter. Principal Financial Group Inc. now owns 4,009,291 shares of the asset manager’s stock valued at $437,417,000 after buying an additional 169,598 shares during the last quarter. Vulcan Value Partners LLC grew its holdings in Ares Management by 12.5% during the 2nd quarter. Vulcan Value Partners LLC now owns 1,902,580 shares of the asset manager’s stock valued at $211,776,000 after buying an additional 211,404 shares in the last quarter. Janus Henderson Group PLC increased its stake in Ares Management by 43.8% in 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 last quarter. Curated Wealth Partners LLC increased its stake in Ares Management by 968.3% in the 3rd quarter. Curated Wealth Partners LLC now owns 1,450,854 shares of the asset manager’s stock worth $168,546,000 after acquiring an additional 1,315,043 shares during the last quarter. Finally, River Road Asset Management LLC increased its stake in Ares Management by 40,652.1% in 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 last quarter. Hedge funds and other institutional investors own 50.03% of the company’s stock.

About Ares Management

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.