Ares Management Corp (NYSE: ARES)’s stock price has dropped by -0.63 in relation to previous closing price of 158.05. Nevertheless, the company has seen a gain of 0.64% in its stock price over the last five trading days. zacks.com reported 2024-10-02 that Investors interested in Financial – Investment Management stocks are likely familiar with Ameriprise Financial Services (AMP) and Ares Management (ARES). But which of these two stocks presents investors with the better value opportunity right now?
Is It Worth Investing in Ares Management Corp (NYSE: ARES) Right Now?
Ares Management Corp (NYSE: ARES) has a price-to-earnings ratio of 79.38x that is above its average ratio. Additionally, the 36-month beta value for ARES is 1.23. 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.”
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The public float for ARES is 184.52M and currently, short sellers hold a 1.91% ratio of that float. The average trading volume of ARES on October 04, 2024 was 999.79K shares.
ARES’s Market Performance
The stock of Ares Management Corp (ARES) has seen a 0.64% increase in the past week, with a 11.49% rise in the past month, and a 13.59% gain in the past quarter. The volatility ratio for the week is 2.06%, and the volatility levels for the past 30 days are at 2.39% for ARES. The simple moving average for the past 20 days is 4.22% for ARES’s stock, with a 15.61% simple moving average for the past 200 days.
Analysts’ Opinion of ARES
Many brokerage firms have already submitted their reports for ARES stocks, with Wells Fargo repeating the rating for ARES by listing it as a “Equal Weight.” The predicted price for ARES in the upcoming period, according to Wells Fargo is $156 based on the research report published on September 12, 2024 of the current year 2024.
Redburn Atlantic, on the other hand, stated in their research note that they expect to see ARES reach a price target of $140. The rating they have provided for ARES stocks is “Neutral” according to the report published on August 27th, 2024.
Deutsche Bank gave a rating of “Hold” to ARES, setting the target price at $132 in the report published on June 13th of the current year.
ARES Trading at 7.20% 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 -1.81% of loss for the given period.
Volatility was left at 2.39%, however, over the last 30 days, the volatility rate increased by 2.06%, as shares surge +11.34% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +8.68% upper at present.
During the last 5 trading sessions, ARES rose by +0.64%, which changed the moving average for the period of 200-days by +34.63% in comparison to the 20-day moving average, which settled at $151.49. In addition, Ares Management Corp saw 32.06% 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 Berry Ryan, who sale 25,000 shares at the price of $151.31 back on Sep 17 ’24. After this action, Berry Ryan now owns 389,202 shares of Ares Management Corp, valued at $3,782,722 using the latest closing price.
Berry Ryan, the Chief Mktg. & Strategy Officer of Ares Management Corp, sale 12,500 shares at $156.17 during a trade that took place back on Sep 19 ’24, which means that Berry Ryan is holding 364,202 shares at $1,952,125 based on the most recent closing price.
Stock Fundamentals for ARES
Current profitability levels for the company are sitting at:
- 0.3 for the present operating margin
- 0.48 for the gross margin
The net margin for Ares Management Corp stands at 0.12. The total capital return value is set at 0.05. Equity return is now at value 20.16, with 1.60 for asset returns.
Based on Ares Management Corp (ARES), the company’s capital structure generated 0.88 points at debt to capital in total, while cash flow to debt ratio is standing at 0.06.
Currently, EBITDA for the company is 1.15 billion with net debt to EBITDA at 11.07. When we switch over and look at the enterprise to sales, we see a ratio of 13.59. The receivables turnover for the company is 3.22for trailing twelve months and the total asset turnover is 0.13.
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.
