Ares Management (NYSE:ARES) Shares Gap Up – Should You Buy?

by · The Cerbat Gem

Ares Management Corporation (NYSE:ARESGet Free Report)’s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $164.26, but opened at $178.81. Ares Management shares last traded at $173.9210, with a volume of 4,503,171 shares.

Analyst Upgrades and Downgrades

ARES has been the subject of a number of recent research reports. Morgan Stanley lowered their price objective on shares of Ares Management from $178.00 to $175.00 and set an “equal weight” rating for the company in a research report on Tuesday, October 21st. TD Cowen raised their price target on Ares Management from $175.00 to $197.00 and gave the stock a “buy” rating in a report on Tuesday, November 4th. Bank of America raised their target price on Ares Management from $196.00 to $197.00 and gave the company a “buy” rating in a research note on Friday, October 3rd. Citigroup reaffirmed a “market outperform” rating on shares of Ares Management in a report on Tuesday, October 21st. Finally, Royal Bank Of Canada reissued an “outperform” rating and set a $215.00 target price on shares of Ares Management in a research note on Monday, September 29th. Thirteen analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $187.46.

Read Our Latest Analysis on Ares Management

Ares Management Stock Up 7.0%

The stock has a market capitalization of $57.44 billion, a P/E ratio of 75.34, a PEG ratio of 1.28 and a beta of 1.53. The stock’s fifty day moving average is $151.22 and its two-hundred day moving average is $167.84. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.22 and a quick ratio of 0.22.

Ares Management (NYSE:ARESGet Free Report) last issued its earnings results on Friday, October 31st. The asset manager reported $1.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.14 by $0.05. Ares Management had a return on equity of 16.33% and a net margin of 11.72%.The business had revenue of $1.66 billion for the quarter, compared to analysts’ expectations of $1.03 billion. During the same period in the previous year, the firm posted $0.55 EPS. As a group, research analysts predict that Ares Management Corporation will post 5.28 earnings per share for the current fiscal year.

Ares Management Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, December 31st. Stockholders of record on Wednesday, December 17th will be given a $0.8438 dividend. This represents a $3.38 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend is Wednesday, December 17th. Ares Management’s dividend payout ratio is 192.27%.

Insider Activity at Ares Management

In other Ares Management news, CEO Michael J. Arougheti sold 186,197 shares of the business’s stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $152.75, for a total value of $28,441,591.75. Following the transaction, the chief executive officer owned 290,997 shares in the company, valued at $44,449,791.75. The trade was a 39.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Chairman Antony P. Ressler sold 128,837 shares of the company’s stock in a transaction dated Wednesday, September 10th. The stock was sold at an average price of $178.30, for a total value of $22,971,637.10. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 718,837 shares of company stock worth $113,625,445. Company insiders own 36.86% of the company’s stock.

Hedge Funds Weigh In On Ares Management

A number of hedge funds have recently added to or reduced their stakes in ARES. Exchange Traded Concepts LLC raised its position in shares of Ares Management by 100.0% during the third quarter. Exchange Traded Concepts LLC now owns 190 shares of the asset manager’s stock valued at $30,000 after buying an additional 95 shares during the last quarter. Financial Network Wealth Advisors LLC acquired a new stake in shares of Ares Management during the 1st quarter worth approximately $31,000. Elevation Point Wealth Partners LLC bought a new stake in shares of Ares Management during the second quarter valued at approximately $35,000. Banque Transatlantique SA bought a new position in Ares Management in the first quarter worth $39,000. Finally, Redmont Wealth Advisors LLC acquired a new stake in Ares Management during the third quarter worth $40,000. Institutional investors and hedge funds own 50.03% of the company’s stock.

Ares Management Company Profile

(Get Free Report)

Ares Management Corporation operates as an alternative asset manager in the United States, Europe, and Asia. The company's Tradable Credit Group segment manages various types of investment funds, such as commingled and separately managed accounts for institutional investors, and publicly traded vehicles and sub-advised funds for retail investors in the tradable and non-investment grade corporate credit markets.

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