Ares Management Corporation [NYSE: ARES] stock went on a downward path that fall over -7.26% on Tuesday, amounting to a one-week price increase of more than 3.71%. The company report on April 6, 2021 that Ares Management Announces Pricing of Offering of Class A common stock.
Ares Management Corporation (NYSE: ARES) (“Ares” or the “Company”) announced the pricing of its previously announced underwritten public offering of 9,500,000 shares of Class A common stock, par value $0.01 per share (“Class A common stock”), of the Company at a public offering price of $54.00 per share of Class A common stock. Ares has granted to the underwriters of the offering an option to purchase up to 1,425,000 additional shares of Class A common stock. The offering is expected to close on or about April 8, 2021, subject to customary closing conditions.
Concurrently with the offering, Ares entered into a share purchase agreement with Sumitomo Mitsui Banking Corporation (“SMBC”), an existing stockholder, whereby SMBC will acquire, subject to the terms and conditions of such share purchase agreement, approximately $250 million of the Company’s common stock (consisting of a number of shares of non-voting common stock and a number of shares of Class A common stock to be determined by SMBC) at a price per share equal to the public offering price less underwriting discounts and commissions. Ares intends to use the net proceeds from the offering and the concurrent private placement for (i) the payment of the cash consideration due in respect of the Company’s previously announced acquisition of Landmark Partners LLC and its subsidiaries (the “Landmark Acquisition”) and related fees, costs and expenses and (ii) general corporate purposes, including repayment of debt or preferred stock, other strategic acquisitions and growth initiatives.
Over the last 12 months, ARES stock rose by 90.15%. The one-year Ares Management Corporation stock forecast points to a potential upside of 8.93. The average equity rating for ARES stock is currently 2.00, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $13.96 billion, with 144.66 million shares outstanding and 91.33 million shares in the current float. Compared to the average trading volume of 678.11K shares, ARES stock reached a trading volume of 6072080 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Ares Management Corporation [ARES]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ARES shares is $60.22 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ARES stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
BMO Capital Markets have made an estimate for Ares Management Corporation shares, keeping their opinion on the stock as Market Perform, with their previous recommendation back on March 29, 2021. While these analysts kept the previous recommendation, Credit Suisse raised their target price to Neutral. The new note on the price target was released on February 24, 2021, representing the official price target for Ares Management Corporation stock. Previously, the target price had yet another raise from $40 to $47, while BMO Capital Markets kept a Outperform rating on ARES stock.
The Average True Range (ATR) for Ares Management Corporation is set at 1.88, with the Price to Sales ratio for ARES stock in the period of the last 12 months amounting to 7.90. The Price to Book ratio for the last quarter was 8.86, with the Price to Cash per share for the same quarter was set at 4.17.
ARES Stock Performance Analysis:
Ares Management Corporation [ARES] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.71. With this latest performance, ARES shares gained by 7.19% in over the last four-week period, additionally plugging by 33.76% over the last 6 months – not to mention a rise of 90.15% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ARES stock in for the last two-week period is set at 52.67, with the RSI for the last a single of trading hit 49.83, and the three-weeks RSI is set at 54.46 for Ares Management Corporation [ARES]. The present Moving Average for the last 50 days of trading for this stock 51.84, while it was recorded at 56.16 for the last single week of trading, and 45.01 for the last 200 days.
Insight into Ares Management Corporation Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Ares Management Corporation [ARES] shares currently have an operating margin of +13.20 and a Gross Margin at +71.79. Ares Management Corporation’s Net Margin is presently recorded at +8.54.
Return on Total Capital for ARES is now 1.83, given the latest momentum, and Return on Invested Capital for the company is 1.34. Return on Equity for this stock inclined to 14.44, with Return on Assets sitting at 1.04. When it comes to the capital structure of this company, Ares Management Corporation [ARES] has a Total Debt to Total Equity ratio set at 913.52. Additionally, ARES Total Debt to Total Capital is recorded at 90.13, with Total Debt to Total Assets ending up at 71.87. Long-Term Debt to Equity for the company is recorded at 1,206.60, with the Long-Term Debt to Total Capital now at 89.25.
Reflecting on the efficiency of the workforce at the company, Ares Management Corporation [ARES] managed to generate an average of $97,716 per employee. Receivables Turnover for the company is 3.11 with a Total Asset Turnover recorded at a value of 0.12.
ARES Stock EPS
With the latest financial reports released by the company, Ares Management Corporation posted 0.45/share EPS, while the average EPS was predicted by analysts to be reported at 0.41/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 9.80%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ARES. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Ares Management Corporation go to 16.40%.
Ares Management Corporation [ARES] Insider Position Details
There are presently around $6,131 million, or 68.70% of ARES stock, in the hands of institutional investors. The top three institutional holders of ARES stocks are: WELLINGTON MANAGEMENT GROUP LLP with ownership of 12,811,385, which is approximately 11.821% of the company’s market cap and around 2.30% of the total institutional ownership; SUMITOMO MITSUI FINANCIAL GROUP, INC., holding 12,130,540 shares of the stock with an approximate value of $665.24 million in ARES stocks shares; and CAPITAL WORLD INVESTORS, currently with $560.18 million in ARES stock with ownership of nearly -0.003% of the company’s market capitalization.
Positions in Ares Management Corporation stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 138 institutional holders increased their position in Ares Management Corporation [NYSE:ARES] by around 7,102,688 shares. Additionally, 83 investors decreased positions by around 4,919,971 shares, while 31 investors held positions by with 99,771,420 shares. The mentioned changes placed institutional holdings at 111,794,079 shares, according to the latest SEC report filing. ARES stock had 44 new institutional investments in for a total of 1,879,326 shares, while 14 institutional investors sold positions of 182,124 shares during the same period.