Zacks Investment Research Downgrades Ares Management (NYSE:ARES) to Hold


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Ares Management (NYSE:ARES) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday, Zacks.com reports.

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. “

A number of other research analysts also recently commented on the stock. BMO Capital Markets raised their target price on shares of Ares Management from $46.00 to $47.00 and gave the company an “outperform” rating in a research report on Thursday, October 29th. Oppenheimer reaffirmed a “hold” rating on shares of Ares Management in a report on Tuesday, October 27th. The Goldman Sachs Group cut shares of Ares Management from a “conviction-buy” rating to a “buy” rating in a report on Tuesday, January 5th. Wells Fargo & Company raised their target price on shares of Ares Management from $50.00 to $51.00 and gave the company an “overweight” rating in a report on Thursday, October 29th. Finally, BidaskClub cut shares of Ares Management from a “buy” rating to a “hold” rating in a report on Saturday, January 9th. Four equities research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. The stock presently has a consensus rating of “Buy” and an average target price of $44.80.

NYSE ARES opened at $46.26 on Tuesday. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.15 and a current ratio of 0.15. The company has a market capitalization of $11.96 billion, a price-to-earnings ratio of 85.67, a price-to-earnings-growth ratio of 1.12 and a beta of 1.18. The company’s 50-day simple moving average is $47.56 and its two-hundred day simple moving average is $42.83. Ares Management has a one year low of $20.20 and a one year high of $49.86.

Ares Management (NYSE:ARES) last posted its earnings results on Wednesday, October 28th. The asset manager reported $0.48 EPS for the quarter, beating analysts’ consensus estimates of $0.42 by $0.06. The business had revenue of $428.31 million for the quarter, compared to the consensus estimate of $393.85 million. Ares Management had a net margin of 7.22% and a return on equity of 16.07%. Equities analysts expect that Ares Management will post 1.74 earnings per share for the current fiscal year.

In related news, insider David B. Kaplan sold 103,002 shares of the business’s stock in a transaction on Monday, November 2nd. The stock was sold at an average price of $42.42, for a total value of $4,369,344.84. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Bennett Rosenthal sold 46,476 shares of the business’s stock in a transaction on Monday, October 19th. The shares were sold at an average price of $44.79, for a total value of $2,081,660.04. The disclosure for this sale can be found here. Insiders have sold a total of 1,105,252 shares of company stock valued at $51,731,114 over the last quarter. 59.69% of the stock is currently owned by corporate insiders.

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. FinTrust Capital Advisors LLC boosted its position in shares of Ares Management by 112.0% during the 2nd quarter. FinTrust Capital Advisors LLC now owns 1,060 shares of the asset manager’s stock valued at $42,000 after purchasing an additional 560 shares in the last quarter. Private Advisor Group LLC acquired a new stake in Ares Management during the second quarter worth approximately $44,000. CI Investments Inc. acquired a new stake in Ares Management during the third quarter worth approximately $59,000. Marshall Wace LLP acquired a new stake in Ares Management during the first quarter worth approximately $145,000. Finally, Steward Partners Investment Advisory LLC grew its stake in Ares Management by 68.1% during the third quarter. Steward Partners Investment Advisory LLC now owns 3,830 shares of the asset manager’s stock worth $155,000 after purchasing an additional 1,551 shares during the period. 42.40% of the stock is owned by hedge funds and other institutional investors.

Ares Management Company Profile

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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