The Goldman Sachs Group Has Lowered Expectations for Ares Management (NYSE:ARES) Stock Price

Ares Management (NYSE:ARES) had its target price dropped by equities research analysts at The Goldman Sachs Group from $188.00 to $166.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage presently has a “buy” rating on the asset manager’s stock. The Goldman Sachs Group’s price target would suggest a potential upside of 41.22% from the stock’s current price.

Other analysts have also issued research reports about the company. StockNews.com lowered Ares Management from a “hold” rating to a “sell” rating in a report on Wednesday, January 8th. Barclays reduced their target price on Ares Management from $224.00 to $217.00 and set an “overweight” rating for the company in a research note on Thursday, February 6th. Keefe, Bruyette & Woods raised shares of Ares Management from a “market perform” rating to an “outperform” rating and upped their price target for the company from $166.00 to $202.00 in a report on Friday, December 20th. Wells Fargo & Company cut their target price on shares of Ares Management from $215.00 to $187.00 and set an “overweight” rating for the company in a report on Thursday, March 20th. Finally, JMP Securities restated a “market perform” rating on shares of Ares Management in a research report on Thursday, February 6th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and nine have assigned a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $176.38.

Ares Management Stock Performance

Shares of NYSE:ARES opened at $117.54 on Thursday. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.53. The company has a market capitalization of $37.07 billion, a price-to-earnings ratio of 57.90, a price-to-earnings-growth ratio of 1.28 and a beta of 1.23. The firm has a 50 day moving average of $166.59 and a 200 day moving average of $170.09. Ares Management has a 52 week low of $113.24 and a 52 week high of $200.49.

Ares Management (NYSE:ARES) last announced its earnings results on Wednesday, February 5th. The asset manager reported $1.23 EPS for the quarter, missing analysts’ consensus estimates of $1.35 by ($0.12). Ares Management had a return on equity of 16.64% and a net margin of 11.35%. On average, sell-side analysts predict that Ares Management will post 5.28 earnings per share for the current fiscal year.

Insider Activity at Ares Management

In related news, insider R. Kipp Deveer sold 78,933 shares of the stock in a transaction dated Thursday, February 6th. The stock was sold at an average price of $190.02, for a total transaction of $14,998,848.66. Following the transaction, the insider now owns 1,150,000 shares of the company’s stock, valued at approximately $218,523,000. This represents a 6.42 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Chairman Bennett Rosenthal sold 69,809 shares of the business’s stock in a transaction dated Tuesday, March 4th. The stock was sold at an average price of $161.01, for a total transaction of $11,239,947.09. Following the sale, the chairman now owns 30,191 shares in the company, valued at $4,861,052.91. This trade represents a 69.81 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 329,113 shares of company stock worth $54,409,915. Insiders own 41.89% of the company’s stock.

Hedge Funds Weigh In On Ares Management

Institutional investors have recently modified their holdings of the business. Versant Capital Management Inc increased its holdings in Ares Management by 67.0% during the 4th quarter. Versant Capital Management Inc now owns 162 shares of the asset manager’s stock worth $29,000 after purchasing an additional 65 shares during the period. Transce3nd LLC acquired a new position in shares of Ares Management during the fourth quarter worth about $29,000. Johnson Financial Group Inc. increased its stake in shares of Ares Management by 104.8% during the fourth quarter. Johnson Financial Group Inc. now owns 170 shares of the asset manager’s stock worth $30,000 after buying an additional 87 shares during the period. Elequin Capital LP acquired a new stake in Ares Management in the fourth quarter valued at approximately $33,000. Finally, Point72 DIFC Ltd purchased a new position in Ares Management in the third quarter worth approximately $36,000. Institutional investors and hedge funds own 50.03% of the company’s stock.

Ares Management Company Profile

Ares Management Corporation operates as an alternative asset manager in the United States, Europe, and Asia. The company's Tradable Credit Group segment manages various types of investment funds, such as commingled and separately managed accounts for institutional investors, and publicly traded vehicles and sub-advised funds for retail investors in the tradable and non-investment grade corporate credit markets.