Ares Management Corp (ARES) Shares Up Despite Recent Market Volatility

Ares Management Corp (NYSE: ARES)’s stock price has plunge by 2.94relation to previous closing price of 134.78. Nevertheless, the company has seen a 2.43% surge in its stock price over the last five trading sessions. seekingalpha.com reported 2024-07-03 that Steven Bavaria discusses his investing strategy, focusing on generating income through high-yield assets like closed-end funds and credit markets. He emphasizes the importance of sticking with a strategy that aligns with one’s risk tolerance and long-term goals, whether it’s traditional equity investing or an income factory approach.

Is It Worth Investing in Ares Management Corp (NYSE: ARES) Right Now?

Ares Management Corp (NYSE: ARES) has a higher price-to-earnings ratio of 60.91x compared to its average ratio, The 36-month beta value for ARES is at 1.23. Analysts have varying views on the stock, with 5 analysts rating it as a “buy,” 2 rating it as “overweight,” 2 as “hold,” and 0 as “sell.”

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The public float for ARES is 170.74M, and currently, shorts hold a 2.00% of that float. The average trading volume for ARES on July 11, 2024 was 1.30M shares.

ARES’s Market Performance

ARES stock saw an increase of 2.43% in the past week, with a monthly gain of 4.37% and a quarterly increase of 3.69%. The volatility ratio for the week is 2.30%, and the volatility levels for the last 30 days are 2.22% for Ares Management Corp (ARES). The simple moving average for the last 20 days is 2.59% for ARES stock, with a simple moving average of 11.96% for the last 200 days.

Analysts’ Opinion of ARES

Many brokerage firms have already submitted their reports for ARES stocks, with Deutsche Bank repeating the rating for ARES by listing it as a “Hold.” The predicted price for ARES in the upcoming period, according to Deutsche Bank is $132 based on the research report published on June 13, 2024 of the current year 2024.

Deutsche Bank, on the other hand, stated in their research note that they expect to see ARES reach a price target of $176. The rating they have provided for ARES stocks is “Buy” according to the report published on May 28th, 2024.

TD Cowen gave a rating of “Buy” to ARES, setting the target price at $154 in the report published on May 07th of the current year.

ARES Trading at 0.51% 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 unable to rebound, for now settling with -7.58% of loss for the given period.

Volatility was left at 2.22%, however, over the last 30 days, the volatility rate increased by 2.30%, as shares surge +1.39% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +3.83% upper at present.

During the last 5 trading sessions, ARES rose by +2.43%, which changed the moving average for the period of 200-days by +32.46% in comparison to the 20-day moving average, which settled at $135.33. In addition, Ares Management Corp saw 16.67% 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 Rosenthal Bennett, who sale 150,000 shares at the price of $131.94 back on Jun 21 ’24. After this action, Rosenthal Bennett now owns 0 shares of Ares Management Corp, valued at $19,790,618 using the latest closing price.

KAPLAN DAVID B, the Co-Founder of Ares Management Corp, sale 125,000 shares at $131.94 during a trade that took place back on Jun 21 ’24, which means that KAPLAN DAVID B is holding 0 shares at $16,492,637 based on the most recent closing price.

Stock Fundamentals for ARES

Current profitability levels for the company are sitting at:

  • 0.19 for the present operating margin
  • 0.64 for the gross margin

The net margin for Ares Management Corp stands at 0.15. The total capital return value is set at 0.04. Equity return is now at value 25.33, with 1.88 for asset returns.

Based on Ares Management Corp (ARES), the company’s capital structure generated 0.9 points at debt to capital in total, while cash flow to debt ratio is standing at -0.02. The debt to equity ratio resting at 8.52. The interest coverage ratio of the stock is 2.01.

Currently, EBITDA for the company is 2.43 billion with net debt to EBITDA at 13.28. When we switch over and look at the enterprise to sales, we see a ratio of 10.22. The receivables turnover for the company is 3.75for trailing twelve months and the total asset turnover is 0.16.

Conclusion

In conclusion, Ares Management Corp (ARES) has had a better performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others 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.

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