Now Is A Suitable Moment For A Long-Term Purchase Of Ares Management Corporation (NYSE: ARES)


Sumitomo Mitsui Banking Corp. (In. recently announced the acquisition of new stake in Ares Management Corporation (NYSE:ARES). This fresh investment now brings its stake to 9.16% valued currently at $481.58 million. In addition, Capital Research & Management Co. raised its holdings by 28575.0 to 10.22 million shares. And The Vanguard Group, Inc. has lifted its position by 2.08% or 0.14 million shares – to 6.88 million shares.

With over 0.45 million Ares Management Corporation (ARES) shares trading Tuesday and a closing price of $40.78 on the day, the dollar volume was approximately $18.28 million. The shares have shown a positive weekly performance of 3.12% and its price on 07/21/20 lost nearly -0.46%. Currently, there are 118.37M common shares owned by the public and among those 84.32M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 13 analysts who have offered their price forecasts for ARES have a consensus price objective of $43.50. The analysts have set the share’s price value over the next 12 months at a high of $49.00 and a low of $36.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Ares Management Corporation stock is 2.00 for the next 12 months. The average price target is 6.14% above its last price level and an upside to the estimated low will see the stock lose -13.28% over that period. But an upside of 16.78% will see the stock hit the forecast high price target while mean target price for the stock is $44.00.

Insiders at the company have transacted a total of 157 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 18 of these insider trades were purchases, accounting for 1,388,930 shares. Insider sales of the common stock occurred on 139 occasions, with total insider shares sold totaling 7,279,094 shares.

The top 3 mutual fund holders in Ares Management Corporation are American Funds Small Cap World Fu, American Funds Income Fund of Ame, and Vanguard Total Stock Market Index. American Funds Small Cap World Fu owns 5.17 million shares of the company’s stock, all valued at over $205.44 million. Vanguard Total Stock Market Index bought 0.51 million shares to bring its total holdings to over 2.65 million shares at a value of $105.4 million. Vanguard Total Stock Market Index now owns shares totaling to 2.00% of the shares outstanding.

Shares of Ares Management Corporation (NYSE: ARES) opened at $40.95, down -$0.02 from a prior closing price of $40.97. However, the script later closed the day at $40.78, down -0.46%. The company’s stock has a 5-day price change of 3.12% and 36.84% over the past three months. ARES shares are trading 14.79% year to date (YTD), with the 12-month market performance up to 45.03% higher. It has a 12-month low price of $20.20 and touched a high of $41.88 over the same period. Currently, 0.45 million shares have been traded, compared to an average intraday trading volume of 1.20 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 3.61%, 7.27%, and 18.93% respectively.

Institutional ownership of Ares Management Corporation (NYSE: ARES) shares accounts for 62.40% of the company’s 118.37M shares outstanding. Mutual fund holders own 47.18%, while other institutional holders and individual stakeholders account for 54.77% and 40.59% respectively.

It has a market capitalization of $10.08B and a beta (3y monthly) value of 1.28. The stock’s trailing 12-month PE ratio is 127.63, while the earnings-per-share (ttm) stands at $0.32. The company has a PEG of 10.50 and the debt-to-equity ratio at 15.73. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.96% over the week and 3.15% over the month.

Analysts forecast that Ares Management Corporation (ARES) will achieve an EPS of $0.38 for the current quarter, $0.4 for the next quarter and $2.16 for 2021. The lowest estimate earnings-per-share for the quarter is $0.34 while analysts give the company a high EPS estimate of $0.42. Comparatively, EPS for the current quarter was $0.32 a year ago. Earnings per share for the fiscal year are expected to increase by 237.40%, and 28.81% over the next financial year. EPS should shrink at an annualized rate of 12.15% over the next five years, compared to 18.00% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 13 brokerage firm advisors rate Ares Management Corporation (ARES) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 11 Wall Street analysts polled rate the stock as a buy, while 2 of the 13 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the ARES, a number of firms have released research notes about the stock. BMO Capital Markets stated their Outperform rating for the stock in a research note on May 29, 2020, with the firm’s price target at $40-$47. Oppenheimer coverage for the Ares Management Corporation (ARES) stock in a research note released on January 14, 2020 offered a Perform rating with a price target of. BMO Capital Markets was of a view on October 08, 2019 that the stock is Market Perform, while Barclays gave the stock Overweight rating on August 05, 2019, issuing a price target of $33. Wells Fargo on their part issued Outperform rating on August 21, 2018.


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