Ares Management (NYSE:ARES) Sets New 1-Year High Following Analyst Upgrade

Ares Management Corp (NYSE:ARES) shares reached a new 52-week high during trading on Friday after Wells Fargo & Co raised their price target on the stock from $45.00 to $50.00. Wells Fargo & Co currently has an overweight rating on the stock. Ares Management traded as high as $37.79 and last traded at $37.72, with a volume of 59186 shares changing hands. The stock had previously closed at $36.83.

ARES has been the topic of a number of other research reports. Zacks Investment Research raised Ares Management from a “hold” rating to a “buy” rating and set a $41.00 target price on the stock in a research report on Monday. Barclays set a $33.00 target price on Ares Management and gave the company a “buy” rating in a research report on Friday, November 1st. Bank of America reissued a “buy” rating and issued a $33.00 target price on shares of Ares Management in a research report on Wednesday, September 25th. Oppenheimer lowered Ares Management from an “outperform” rating to a “market perform” rating in a research report on Tuesday. Finally, BMO Capital Markets initiated coverage on Ares Management in a research report on Monday, October 7th. They issued a “market perform” rating on the stock. Four equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. Ares Management currently has a consensus rating of “Buy” and a consensus target price of $36.43.

Institutional investors have recently bought and sold shares of the company. Bank of New York Mellon Corp increased its position in shares of Ares Management by 41.9% during the second quarter. Bank of New York Mellon Corp now owns 493,541 shares of the asset manager’s stock worth $12,916,000 after acquiring an additional 145,797 shares during the period. State Street Corp increased its position in shares of Ares Management by 8.1% during the third quarter. State Street Corp now owns 1,331,484 shares of the asset manager’s stock worth $35,697,000 after acquiring an additional 99,553 shares during the period. Point72 Asset Management L.P. purchased a new position in Ares Management in the third quarter valued at $3,437,000. Waddell & Reed Financial Inc. increased its holdings in Ares Management by 11.5% in the second quarter. Waddell & Reed Financial Inc. now owns 760,036 shares of the asset manager’s stock valued at $19,890,000 after buying an additional 78,367 shares during the last quarter. Finally, Metropolitan Life Insurance Co NY purchased a new position in Ares Management in the third quarter valued at $593,000. 66.68% of the stock is currently owned by institutional investors and hedge funds.

The stock has a market cap of $4.32 billion, a PE ratio of 26.76, a price-to-earnings-growth ratio of 1.34 and a beta of 1.52. The firm has a fifty day moving average of $34.52 and a 200 day moving average of $30.30. The company has a quick ratio of 0.12, a current ratio of 0.12 and a debt-to-equity ratio of 0.35.

Ares Management (NYSE:ARES) last posted its earnings results on Thursday, October 31st. The asset manager reported $0.34 EPS for the quarter, missing the consensus estimate of $0.37 by ($0.03). The business had revenue of $466.49 million during the quarter, compared to analysts’ expectations of $312.15 million. Ares Management had a net margin of 7.76% and a return on equity of 18.98%. The business’s quarterly revenue was up 93.7% compared to the same quarter last year. During the same period last year, the company earned $0.30 EPS. On average, equities research analysts forecast that Ares Management Corp will post 1.52 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which was paid on Tuesday, December 31st. Investors of record on Tuesday, December 17th were issued a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 3.37%. The ex-dividend date of this dividend was Monday, December 16th. This is a positive change from Ares Management’s previous quarterly dividend of $0.09. Ares Management’s dividend payout ratio is 90.14%.

Ares Management Company Profile (NYSE:ARES)

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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