Ares Management Corporation (NYSE:ARES) closed Thursday at $67.18 per share, down from $71.17 a day earlier. While Ares Management Corporation has underperformed by -5.61%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, ARES fell by -12.23%, with highs and lows ranging from $90.08 to $53.15, whereas the simple moving average fell by -7.83% in the last 200 days.
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On August 31, 2022, Barclays started tracking Ares Management Corporation (NYSE: ARES) recommending Overweight. A report published by JMP Securities on June 08, 2022, Initiated its previous ‘Mkt Perform’ rating for ARES. Piper Sandler also rated ARES shares as ‘Overweight’, setting a target price of $97 on the company’s shares in an initiating report dated January 25, 2022. Wells Fargo Initiated an Overweight rating on December 16, 2021, and assigned a price target of $96. BofA Securities initiated its ‘Buy’ rating for ARES, as published in its report on December 16, 2021. Morgan Stanley’s report from September 10, 2021 suggests a price prediction of $90 for ARES shares, giving the stock a ‘Equal-Weight’ rating. BMO Capital Markets also rated the stock as ‘Outperform’.
Analysis of Ares Management Corporation (ARES)
The current dividend for ARES investors is set at $2.44 per share, indicating investors will get a return regardless of how the company performs over the next quarter. Further, the quarter-over-quarter decrease in sales is -69.20%, showing a negative trend in the upcoming months.
There are several well-rounded types of analysis and research techniques that can be used to gain a clear view of Ares Management Corporation’s future performance, with equity being one of the most critical indicators. The goal here is to ensure that your current return on equity of 16.10% is sufficient for you to turn a profit off your investment.
As an indicator of volatility for any stock, average volume can also be very valuable, and ARES is recording an average volume of 851.76K. On a monthly basis, the volatility of the stock is set at 3.12%, whereas on a weekly basis, it is put at 3.92%, with a loss of -11.85% over the past seven days. Furthermore, long-term investors anticipate a median target price of $86.55, showing growth from the present price of $67.18, which can serve as yet another indication of whether ARES is worth investing in or should be passed over.
How Do You Analyze Ares Management Corporation Shares?
Ares Management Corporation (ARES) is based in the USA and is one of the most prominent companies operating in the Asset Management market. When comparing Ares Management Corporation shares with other companies under Financial, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 44.40, there is a growth in quarterly earnings of -77.70%.
Apart from looking at the fundamentals, you should also pay attention to the number of company employees who own shares. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 0.80%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 75.30% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in ARES shares?
The recent increase in stakes in ARES appears to be a result of several institutional investors and hedge funds increasing their positions. Wellington Management Co. LLP’s position in ARES has increased by 22.68% in the first quarter. The company now owns 19,385,395 shares of the stock, with a value of $1.44 billion, following the purchase of 3,584,121 additional shares during the last quarter. The Vanguard Group, Inc. made another increased to its shares in ARES during the first quarter, upping its stake by 3.61%.
ARES shares are owned by institutional investors to the tune of 75.30% at present.