Ares Management Stock Rating Downgraded by StockNews.com

Ares Management (NYSE:ARES) has recently been downgraded by research analysts at StockNews.com from a "hold" rating to a "sell" rating, according to a report released on Wednesday.

In addition to StockNews.com, several other analysts have issued their assessments of Ares Management. Redburn Atlantic began coverage on the company with a "neutral" rating and a price target of $140.00 in a report on August 27. Meanwhile, TD Cowen raised their price target from $184.00 to $187.00, maintaining a "buy" rating on November 4. Deutsche Bank also increased their price target from $146.00 to $150.00, supporting a "hold" rating in a report dated November 11.

On the other hand, The Goldman Sachs Group revised their price objective for Ares Management from $145.00 to $160.00, reaffirming their "buy" rating back on September 30. Finally, UBS Group raised their target price on the stock from $158.00 to $195.00 while maintaining a "buy" rating in their report on October 22. Overall, one investment analyst rates the stock as a sell, five have assigned a hold rating, and seven analysts give it a buy rating. According to MarketBeat, Ares Management currently holds a consensus rating of "Hold" with an average price target of $169.64.

Ares Management Stock Performance

The stock of Ares Management opened at $182.66 on Wednesday. The company’s 50-day moving average price is $169.17, while its two-hundred-day moving average price stands at $152.17. It holds a market capitalization of $57.18 billion, with a price-to-earnings (P/E) ratio of 83.97, a P/E/G ratio of 1.94, and a beta of 1.19. Additionally, Ares Management has a debt-to-equity ratio of 0.53, alongside a current ratio and quick ratio of 1.05. The stock has fluctuated within a 52-week span, reaching a low of $112.03 and a high of $184.47.

The company released its quarterly earnings data on November 1, reporting earnings per share of $0.95, which surpassed the expected $0.94 by $0.01. Ares Management also revealed a return on equity of 19.89% and a net margin of 12.51%. It reported revenue of $1.13 billion, exceeding the consensus estimate of $833.58 million. In the same quarter last year, the company recorded earnings of $0.83 per share. Analysts predict that Ares Management will achieve 4.06 earnings per share for the current fiscal year.

Insider Transactions

In recent insider news, R. Kipp Deveer, an insider at Ares Management, sold 115,838 shares of the stock on December 6, which amounted to approximately $20.6 million at an average price of $177.83. Post-transaction, Deveer now owns 1,259,162 shares valued at about $223.9 million, representing an 8.42% reduction in their ownership. The transaction details were disclosed in a filing with the Securities and Exchange Commission. Another insider, Ryan Berry, sold 12,500 shares on September 16 for a total of approximately $1.86 million at an average price of $148.42. Afterward, Berry owns 414,202 shares worth around $61.5 million, indicating a 2.93% decrease in ownership. Over the past 90 days, insiders have sold 644,810 shares valued at $111.1 million, and company insiders now hold about 1.20% of the total stock outstanding.

Institutional Investor Activity

Recent activities by institutional investors show varied movements regarding Ares Management stocks. MetLife Investment Management LLC increased its stake by 0.7% in the third quarter, owning now 11,538 shares valued at $1.8 million. Likewise, Chicago Partners Investment Group LLC raised its position by 1.4%, owning 6,392 shares worth $1.07 million after acquiring more shares during the period. Sequoia Financial Advisors LLC improved its stake by 3.9%, holding now 2,560 shares valued at $399,000 after additional purchases.

Morse Asset Management Inc also grew its position by 0.7% in the third quarter, now owning 14,035 shares valued at $2.19 million. Furthermore, Whittier Trust Co. of Nevada Inc. raised its stake by 21.0%, now keeping 559 shares valued at $87,000 after its additional acquisitions. Overall, institutional investors and hedge funds own approximately 50.03% of Ares Management’s stock.

Ares Management Overview

Ares Management Corporation operates as an alternative asset manager, providing services across the United States, Europe, and Asia. The firm's Tradable Credit Group segment manages various investment funds including commingled and separately managed accounts targeting institutional investors, alongside publicly traded and sub-advised funds for retail investors in both tradable and non-investment grade corporate credit markets.

Conclusion

As Ares Management navigates regulatory changes and market dynamics, the recent downgrade by StockNews.com may influence investor sentiment. Stakeholders should monitor developments closely and consider the implications of recent insider activities and institutional investment trends.

Ares, Management, Stock