Ares Management Corp (NYSE: ARES)’s stock price has surge by 2.72relation to previous closing price of 138.67. Nevertheless, the company has seen a 5.79% surge in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-05-06 that Investors looking for stocks in the Financial – Investment Management sector might want to consider either Patria Investments (PAX) or Ares Management (ARES). But which of these two companies is the best option for those looking for undervalued stocks?
Is It Worth Investing in Ares Management Corp (NYSE: ARES) Right Now?
Ares Management Corp (NYSE: ARES) has a price-to-earnings ratio of 61.51x that is above its average ratio. Additionally, the 36-month beta value for ARES is 1.22. There are mixed opinions on the stock, with 5 analysts rating it as a “buy,” 2 rating it as “overweight,” 2 rating it as “hold,” and 0 rating it as “sell.”
The public float for ARES is 165.11M and currently, short sellers hold a 1.88% ratio of that float. The average trading volume of ARES on May 10, 2024 was 1.13M shares.
ARES’s Market Performance
ARES’s stock has seen a 5.79% increase for the week, with a 6.27% rise in the past month and a 5.08% gain in the past quarter. The volatility ratio for the week is 2.93%, and the volatility levels for the past 30 days are at 2.75% for Ares Management Corp The simple moving average for the past 20 days is 6.79% for ARES’s stock, with a 22.49% simple moving average for the past 200 days.
Analysts’ Opinion of ARES
Many brokerage firms have already submitted their reports for ARES stocks, with TD Cowen repeating the rating for ARES by listing it as a “Buy.” The predicted price for ARES in the upcoming period, according to TD Cowen is $154 based on the research report published on May 07, 2024 of the current year 2024.
Jefferies, on the other hand, stated in their research note that they expect to see ARES reach a price target of $122. The rating they have provided for ARES stocks is “Hold” according to the report published on January 09th, 2024.
Wolfe Research gave a rating of “Outperform” to ARES, setting the target price at $133 in the report published on October 05th of the previous year.
ARES Trading at 6.74% from the 50-Day Moving Average
After a stumble in the market that brought ARES to its low price for the period of the last 52 weeks, the company was able to rebound, for now settling with 1.49% of gains for the given period.
Volatility was left at 2.75%, however, over the last 30 days, the volatility rate increased by 2.93%, as shares surge +6.24% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +8.53% upper at present.
During the last 5 trading sessions, ARES rose by +5.79%, which changed the moving average for the period of 200-days by +40.49% in comparison to the 20-day moving average, which settled at $133.80. In addition, Ares Management Corp saw 19.78% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at ARES starting from RESSLER ANTONY P, who sale 143,569 shares at the price of $131.51 back on Apr 17 ’24. After this action, RESSLER ANTONY P now owns 0 shares of Ares Management Corp, valued at $18,880,987 using the latest closing price.
RESSLER ANTONY P, the Co-Founder & Exec. Chairman of Ares Management Corp, sale 159,860 shares at $130.29 during a trade that took place back on Apr 16 ’24, which means that RESSLER ANTONY P is holding 0 shares at $20,827,932 based on the most recent closing price.
Stock Fundamentals for ARES
Current profitability levels for the company are sitting at:
- 0.18 for the present operating margin
- 0.53 for the gross margin
The net margin for Ares Management Corp stands at 0.18. The total capital return value is set at 0.04. Equity return is now at value 26.32, with 1.95 for asset returns.
Based on Ares Management Corp (ARES), the company’s capital structure generated 0.89 points at debt to capital in total, while cash flow to debt ratio is standing at -0.01. The debt to equity ratio resting at 8.32. The interest coverage ratio of the stock is 1.21.
Currently, EBITDA for the company is 2.43 billion with net debt to EBITDA at 12.0. When we switch over and look at the enterprise to sales, we see a ratio of 10.15. The receivables turnover for the company is 3.2for trailing twelve months and the total asset turnover is 0.16.
Conclusion
In conclusion, Ares Management Corp (ARES) has seen better performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
