Should Investors Be Buying Ares Management (NYSE:ARES) Shares? Bank of America (Merrill Lynch) Upgrades The Stock


Ares Management (NYSE:ARES) Stock Upgrade

The rating of Ares Management (NYSE:ARES) shares have been hiked by stock analysts at Bank of America (Merrill Lynch) from their previous “Neutral” rating to a solid “Buy” via an analyst note released on 8 December. Bank of America (Merrill Lynch) presently has a $18.00 TP shares and their TP may suggest a possible upside of 32.16%.

From a total of 8 analysts covering Ares Management (NYSE:ARES) stock, 0 rate it a ”Buy”, 0 a “Sell”, and 0 a ”Hold”. This means that NaN of the ratings are positive. The highest target price is $23 while the lowest target price is $17. The mean of all analyst targets is $19.88 with a 48.72% above today’s ($13.67) stock price. Ares Management was the topic of 7 analyst reports since August 11, 2015 according to the firm StockzIntelligence Inc. Bank of America upgraded shares on December 8 to “Buy” rating. Goldman Sachs initiated ARES stock in a recent report from August 11 with “Neutral” rating.

The stock increased 0.37% or $0.05 on December 8, striking $13.67. Approximately 68,499 shares of stock traded hands. Ares Management LP (NYSE:ARES) has declined 26.51% since May 6, 2015 and is downtrending. It has underperformed by 25.71% the S&P500.

The overall sentiment of institutions has decreased to 1.31 in Q2 2015. Its down 0.09, from 1.4 in 2015Q2. The ratio dived, as 5 institutions have sold all the shares of Ares Management LP that they owned while 8 funds have taken shares off the table. 5 funds have purchased shares for the first time while 12 added to their positions. These institutions now hold 9.68 million shares or 1.79% more than the 9.51 million shares they owned in 2015Q2.

The Fund Gator Capital Management Llc currently is holding shares equating to 1.16% of its total portfolio in Ares Management LP representing a total of 40,567 shares. Another fund,Lord Abbett & Co. Llc, is holding a total of 1.69 million shares equating to 0.09% of their holdings. Additionally, Royce & Associates Llc has a 959,590 share stake in Ares Management LP which represents 0.09% of their total portfolio. The Fund, Alpine Woods Capital Investors Llc, based out of New York, has also built up a stake in the stock, which represents a total of 0.03% of their total portfolio. Finally American Century Companies Inc, a fund which is based in the state of Missouri reported a total holdings of 819,833 shares.

Ares Management, L.P. is a global alternative asset manager. The company has a market cap of $2.88 billion. The Firm provides its investment management capabilities through various funds and products that meet the needs of a range of institutional and retail investors. It has 50.69 P/E ratio. The Firm operates in four divisions: Tradable Credit Group, Direct Lending Group, Private Equity Group and Real Estate Group.

According to Zacks Investment Research, “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.” Get a free copy of the Zacks research report on Ares Management LP (ARES).