Ares Management Corp (ARES) Stock: A Value Analysis

The price-to-earnings ratio for Ares Management Corp (NYSE: ARES) is 81.33x, which is above its average ratio. Moreover, the 36-month beta value for ARES is 1.20. Analysts have varying opinions on the stock, with 5 analysts rating it as a “buy,” 4 as “overweight,” 8 as “hold,” and 0 as “sell.”

The public float for ARES is 187.51M and currently, short sellers hold a 1.78% of that float. On December 25, 2024, ARES’s average trading volume was 1.29M shares.

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ARES) stock’s latest price update

The stock price of Ares Management Corp (NYSE: ARES) has surged by 1.15 when compared to previous closing price of 179.00, but the company has seen a 1.53% gain in its stock price over the last five trading sessions. zacks.com reported 2024-12-24 that Investors looking for stocks in the Financial – Investment Management sector might want to consider either T. Rowe Price (TROW) or Ares Management (ARES).

ARES’s Market Performance

Ares Management Corp (ARES) has seen a 1.53% rise in stock performance for the week, with a 3.16% gain in the past month and a 14.56% surge in the past quarter. The volatility ratio for the week is 3.57%, and the volatility levels for the past 30 days are at 2.50% for ARES. The simple moving average for the last 20 days is 2.04% for ARES stock, with a simple moving average of 21.42% for the last 200 days.

Analysts’ Opinion of ARES

Many brokerage firms have already submitted their reports for ARES stocks, with Keefe Bruyette repeating the rating for ARES by listing it as a “Outperform.” The predicted price for ARES in the upcoming period, according to Keefe Bruyette is $202 based on the research report published on December 20, 2024 of the current year 2024.

Wells Fargo, on the other hand, stated in their research note that they expect to see ARES reach a price target of $212. The rating they have provided for ARES stocks is “Overweight” according to the report published on December 12th, 2024.

Wells Fargo gave a rating of “Equal Weight” to ARES, setting the target price at $156 in the report published on September 12th of the current year.

ARES Trading at 5.09% 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 -2.16% of loss for the given period.

Volatility was left at 2.50%, however, over the last 30 days, the volatility rate increased by 3.57%, as shares surge +2.86% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +10.84% upper at present.

During the last 5 trading sessions, ARES rose by +1.53%, which changed the moving average for the period of 200-days by +36.56% in comparison to the 20-day moving average, which settled at $177.44. In addition, Ares Management Corp saw 52.25% 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 14,357 shares at the price of $180.16 back on Dec 11 ’24. After this action, Berry Ryan now owns 233,214 shares of Ares Management Corp, valued at $2,586,557 using the latest closing price.

Berry Ryan, the Chief Mktg. & Strategy Officer of Ares Management Corp, sale 200 shares at $180.07 during a trade that took place back on Nov 27 ’24, which means that Berry Ryan is holding 253,014 shares at $36,014 based on the most recent closing price.

Stock Fundamentals for ARES

Current profitability levels for the company are sitting at:

  • 0.34 for the present operating margin
  • 0.53 for the gross margin

The net margin for Ares Management Corp stands at 0.12. The total capital return value is set at 0.06. Equity return is now at value 22.70, with 1.80 for asset returns.

Based on Ares Management Corp (ARES), the company’s capital structure generated 0.12 points at debt to capital in total, while cash flow to debt ratio is standing at 10.92. The debt to equity ratio resting at 0.13. The interest coverage ratio of the stock is 1.31.

Currently, EBITDA for the company is 1.15 billion with net debt to EBITDA at 0.08. When we switch over and look at the enterprise to sales, we see a ratio of 9.66. The receivables turnover for the company is 3.57for trailing twelve months and the total asset turnover is 0.15.

Conclusion

To wrap up, the performance of Ares Management Corp (ARES) has been better in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. 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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