Ares Management LP Unit (ARES) Downgraded by Zacks Investment Research

Zacks Investment Research downgraded shares of Ares Management LP Unit (NYSE:ARES) from a hold rating to a strong sell rating in a report published on Tuesday.

According to Zacks, “Ares Management, L.P. is a global alternative asset manager. It manages four investment groups that invest in the tradable credit, direct lending, and private equity and real estate markets. The company’s Tradable Credit Group segment manages various types of investment funds, such as commingled and separately managed accounts. Its Direct Lending Group segment provides financing solutions to small-to-medium sized companies. The company’s Private Equity Group segment focuses on majority or shared-control investments primarily in under-capitalized companies. Its Real Estate Group segment invests in new developments and the repositioning of assets; and originates and invests in a range of self-originated financing opportunities for middle-market owners and operators of commercial real estate. Ares Management, L.P. is headquartered in Los Angeles. “

ARES has been the subject of a number of other research reports. Bank of America boosted their price target on Ares Management LP Unit from $26.00 to $27.00 and gave the stock a buy rating in a report on Monday, September 17th. ValuEngine raised Ares Management LP Unit from a hold rating to a buy rating in a report on Saturday, November 10th. Wells Fargo & Co raised Ares Management LP Unit from a market perform rating to an outperform rating in a report on Tuesday, August 21st. Morgan Stanley boosted their price target on Ares Management LP Unit from $24.00 to $25.00 and gave the stock a hold rating in a report on Tuesday, October 9th. Finally, Oppenheimer set a $28.00 price target on Ares Management LP Unit and gave the stock a buy rating in a report on Friday, November 2nd. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and ten have assigned a buy rating to the stock. The company presently has a consensus rating of Buy and a consensus target price of $26.38.

Ares Management LP Unit stock opened at $22.21 on Tuesday. The company has a quick ratio of 0.14, a current ratio of 0.14 and a debt-to-equity ratio of 0.41. Ares Management LP Unit has a 52 week low of $18.30 and a 52 week high of $25.95. The firm has a market cap of $2.24 billion, a PE ratio of 11.51, a price-to-earnings-growth ratio of 1.43 and a beta of 1.40.

Ares Management LP Unit (NYSE:ARES) last posted its quarterly earnings results on Thursday, November 1st. The asset manager reported $0.30 EPS for the quarter, missing analysts’ consensus estimates of $0.38 by ($0.08). Ares Management LP Unit had a return on equity of 29.05% and a net margin of 7.93%. The business had revenue of $240.78 million for the quarter, compared to analyst estimates of $240.75 million. During the same period last year, the firm posted $0.40 EPS. Ares Management LP Unit’s quarterly revenue was down 16.5% on a year-over-year basis. As a group, research analysts forecast that Ares Management LP Unit will post 1.52 EPS for the current year.

The company also recently announced a quarterly dividend, which will be paid on Monday, December 31st. Shareholders of record on Monday, December 17th will be issued a $0.28 dividend. The ex-dividend date of this dividend is Friday, December 14th. This represents a $1.12 dividend on an annualized basis and a yield of 5.04%. Ares Management LP Unit’s payout ratio is presently 58.03%.

Institutional investors and hedge funds have recently modified their holdings of the business. Russell Investments Group Ltd. acquired a new position in Ares Management LP Unit in the 3rd quarter worth about $112,000. Cubist Systematic Strategies LLC increased its holdings in Ares Management LP Unit by 785.5% in the 2nd quarter. Cubist Systematic Strategies LLC now owns 5,313 shares of the asset manager’s stock worth $110,000 after purchasing an additional 4,713 shares in the last quarter. Stelac Advisory Services LLC acquired a new position in Ares Management LP Unit in the 3rd quarter worth about $126,000. Belpointe Asset Management LLC acquired a new position in Ares Management LP Unit in the 3rd quarter worth about $162,000. Finally, Cowen Prime Services LLC acquired a new position in Ares Management LP Unit in the 3rd quarter worth about $313,000. 55.25% of the stock is owned by institutional investors and hedge funds.

Ares Management LP Unit Company Profile

Ares Management, L.P. 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.

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