Ares Management (NYSE:ARES) Rating Increased to Buy at Zacks Investment Research

Ares Management (NYSE:ARES) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday, Zacks.com reports. The firm presently has a $25.00 price target on the asset manager’s stock. Zacks Investment Research‘s target price suggests a potential downside of 17.87% from the company’s current price.

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. “

Other research analysts have also issued research reports about the stock. Morgan Stanley reduced their price objective on shares of Ares Management from $38.00 to $35.00 and set an “equal weight” rating on the stock in a research note on Friday, March 13th. UBS Group lifted their price objective on shares of Ares Management from $38.00 to $40.00 and gave the stock a “buy” rating in a research note on Tuesday, January 28th. Goldman Sachs Group reissued a “buy” rating and set a price objective (up previously from ) on shares of Ares Management in a research note on Friday, February 14th. Oppenheimer lowered shares of Ares Management from an “outperform” rating to a “market perform” rating in a research note on Tuesday, January 14th. Finally, Wells Fargo & Co lifted their price objective on shares of Ares Management from $45.00 to $50.00 and gave the stock an “overweight” rating in a research note on Friday, January 17th. Four equities research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. The company presently has a consensus rating of “Buy” and an average price target of $37.00.

Shares of NYSE:ARES traded up $1.38 during trading on Tuesday, hitting $30.44. 2,063,800 shares of the company’s stock were exchanged, compared to its average volume of 810,505. Ares Management has a 1-year low of $20.20 and a 1-year high of $41.88. The firm has a 50-day moving average price of $34.58 and a two-hundred day moving average price of $32.73. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.38. The firm has a market cap of $3.19 billion, a P/E ratio of 28.45, a PEG ratio of 0.79 and a beta of 1.52.

Ares Management (NYSE:ARES) last issued its quarterly earnings results on Thursday, February 13th. The asset manager reported $0.67 EPS for the quarter, topping the consensus estimate of $0.50 by $0.17. Ares Management had a net margin of 8.43% and a return on equity of 15.65%. The company had revenue of $484.45 million during the quarter, compared to analysts’ expectations of $424.84 million. As a group, research analysts predict that Ares Management will post 1.87 EPS for the current year.

A number of institutional investors and hedge funds have recently made changes to their positions in ARES. Marshall Wace LLP bought a new position in Ares Management in the first quarter valued at approximately $145,000. Tower Research Capital LLC TRC bought a new position in Ares Management in the third quarter valued at approximately $120,000. State Street Corp lifted its stake in Ares Management by 8.1% in the third quarter. State Street Corp now owns 1,331,484 shares of the asset manager’s stock valued at $35,697,000 after buying an additional 99,553 shares in the last quarter. Stifel Financial Corp lifted its stake in Ares Management by 68.2% in the third quarter. Stifel Financial Corp now owns 25,119 shares of the asset manager’s stock valued at $669,000 after buying an additional 10,182 shares in the last quarter. Finally, Phoenix Holdings Ltd. bought a new position in Ares Management in the third quarter valued at approximately $10,345,000. 66.31% of the stock is currently owned by hedge funds and other institutional investors.

About Ares Management

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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