Zacks Investment Research Upgrades Ares Management (NYSE:ARES) to Buy

Zacks Investment Research upgraded shares of Ares Management (NYSE:ARES) from a hold rating to a buy rating in a research report report published on Wednesday morning, Zacks.com reports. They currently have $88.00 target price on the asset manager’s stock.

According to Zacks, “Ares Management, L.P. is a global alternative asset manager. It manages four investment groups that invest in the tradable credit, direct lending, and private equity and real estate markets. The company’s Tradable Credit Group segment manages various types of investment funds, such as commingled and separately managed accounts. Its Direct Lending Group segment provides financing solutions to small-to-medium sized companies. The company’s Private Equity Group segment focuses on majority or shared-control investments primarily in under-capitalized companies. Its Real Estate Group segment invests in new developments and the repositioning of assets; and originates and invests in a range of self-originated financing opportunities for middle-market owners and operators of commercial real estate. Ares Management, L.P. is headquartered in Los Angeles. “

ARES has been the subject of several other reports. Wells Fargo & Company initiated coverage on Ares Management in a report on Wednesday, December 15th. They issued an overweight rating and a $96.00 target price for the company. Jefferies Financial Group lifted their price target on Ares Management from $82.00 to $86.00 and gave the stock a buy rating in a research report on Thursday, September 30th. Royal Bank of Canada lifted their price target on Ares Management from $87.00 to $98.00 and gave the stock an outperform rating in a research report on Friday, October 29th. Morgan Stanley reaffirmed a hold rating and issued a $92.00 price target on shares of Ares Management in a research report on Friday, December 3rd. Finally, Bank of America began coverage on Ares Management in a research report on Thursday, December 16th. They issued a buy rating and a $117.00 price target on the stock. Two analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. According to MarketBeat.com, Ares Management currently has a consensus rating of Buy and an average price target of $86.44.

ARES opened at $77.12 on Wednesday. The business has a 50 day moving average price of $81.27 and a 200 day moving average price of $76.44. Ares Management has a twelve month low of $44.43 and a twelve month high of $90.08. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.19 and a current ratio of 0.19. The firm has a market cap of $22.36 billion, a P/E ratio of 40.17, a price-to-earnings-growth ratio of 0.80 and a beta of 1.02.

Ares Management (NYSE:ARES) last posted its earnings results on Wednesday, October 27th. The asset manager reported $0.62 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.64 by ($0.02). Ares Management had a return on equity of 14.96% and a net margin of 10.23%. The company had revenue of $512.59 million during the quarter, compared to analyst estimates of $528.44 million. During the same quarter last year, the firm posted $0.48 earnings per share. As a group, analysts anticipate that Ares Management will post 2.45 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which was paid on Friday, December 31st. Stockholders of record on Friday, December 17th were given a dividend of $0.47 per share. This represents a $1.88 dividend on an annualized basis and a dividend yield of 2.44%. The ex-dividend date was Thursday, December 16th. Ares Management’s dividend payout ratio is presently 97.92%.

In related news, insider R. Kipp Deveer sold 79,435 shares of the business’s stock in a transaction on Monday, November 8th. The stock was sold at an average price of $85.55, for a total value of $6,795,664.25. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Michael J. Arougheti sold 46,721 shares of the business’s stock in a transaction on Thursday, January 13th. The shares were sold at an average price of $77.81, for a total value of $3,635,361.01. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 320,741 shares of company stock worth $26,589,266. 49.34% of the stock is currently owned by company insiders.

Hedge funds have recently made changes to their positions in the stock. Harbor Investment Advisory LLC boosted its stake in Ares Management by 120.0% in the third quarter. Harbor Investment Advisory LLC now owns 550 shares of the asset manager’s stock worth $41,000 after purchasing an additional 300 shares in the last quarter. Liberty Wealth Management LLC boosted its stake in Ares Management by 310.3% in the third quarter. Liberty Wealth Management LLC now owns 595 shares of the asset manager’s stock worth $49,000 after purchasing an additional 450 shares in the last quarter. Advisory Services Network LLC acquired a new position in Ares Management in the second quarter worth $54,000. Atticus Wealth Management LLC acquired a new position in Ares Management in the third quarter worth $98,000. Finally, O Shaughnessy Asset Management LLC boosted its stake in Ares Management by 10,138.5% in the third quarter. O Shaughnessy Asset Management LLC now owns 1,331 shares of the asset manager’s stock worth $98,000 after purchasing an additional 1,318 shares in the last quarter. 44.42% of the stock is currently owned by institutional investors and hedge funds.

About Ares Management

Ares Management Corp. is engaged in providing investment management and consultancy services. It operates through the following segments: Credit Group, Private Equity Group and Real Estate Group. The Credit Group segment offers credit strategies across the liquid and illiquid spectrum, including syndicated bank loans, high yield bonds, credit opportunities, special situations, asset-backed investments and U.S.

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