Stock Price & Analysis

Based on the analysis of insider activity, strategic partnerships, and analyst sentiment, ARES stock presents a positive outlook. The insider purchase by Ashish Bhutani and the expansion with ENGIE suggest confidence and growth potential. While the stock's valuation is high, the strategic moves and analyst consensus support a buy recommendation.

Buy ARES stock as it shows strong fundamentals and positive market sentiment.

The price prediction for ARES stock in 2025 is $155 per share, driven by strong technical indicators and positive news sentiment. The stock is trading above key moving averages with improving MACD momentum, and recent insider buying signals confidence.

The S1 support level for ARES Stock is $142.26 ,The R1 resistant level for ARES Stock is $155.14.

As of the end of day on 2025-04-02, the price of ARES Stock was $147.68.

The target price for ARES Stock according to analyst rating is 197.45, with the highest price target at 218.00 and the lowest at 168.00. Analysts have a Moderate Buy rating on ARES Stock overall.

The market cap of ARES is $50.3B.

Analysis and Insights

Valuation Metrics:

ARES shows signs of being overvalued based on its current valuation metrics. The stock has a high P/E ratio of 74.22 (Q3 2024) and 85.48 (Q4 2024), indicating a premium valuation compared to industry peers. The EV/EBITDA ratio of 43.63 (Q3 2024) and 47.57 (Q4 2024) further supports this assessment, suggesting investors are paying a high price per dollar of earnings.

Market Sentiment and Analyst Ratings:

Analysts have mixed views on ARES. Wells Fargo lowered its price target to $187 from $215, citing macroeconomic uncertainties, while Barclays maintains a more optimistic $224 target. The stock has a consensus "Buy" rating, but the recent price target adjustments indicate some caution.

Recent News and Insider Activity:

Positive news includes a partnership expansion with ENGIE, enhancing ARES' renewable energy portfolio. Insider buying by a director, Ashish Bhutani, signals confidence. However, the stock's high valuation may not be justified without strong earnings growth.

Conclusion:

ARES appears overvalued due to high P/E and EV/EBITDA ratios. While long-term prospects are positive, the current price may not be sustainable without earnings growth. Investors should exercise caution and consider waiting for a correction.

Ares Management Corporation is a global alternative investment manager offering clients complementary primary and secondary investment solutions across various asset classes. The Company's segments include Credit Group, Private Equity Group, Real Assets Group, Secondaries Group and Other. The Credit Group segment manages credit strategies across the liquid and illiquid spectrum, including liquid credit, alternative credit, direct lending and APAC credit. The Private Equity Group segment categorizes its investment strategies as corporate private equity, special opportunities and APAC private equity. The Real Assets Group segment manages comprehensive equity and debt strategies across real estate and infrastructure investments. The Secondaries Group segment invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate, infrastructure and credit. Its global platform has approximately $419 billion of assets under management.

Price Prediction for ARES Stock by 2030

ARES stock is predicted to reach $250 by 2030, driven by strong financial performance and positive analyst sentiment. The stock's current price of $152.57, combined with its recent gains and analyst price targets like RBC Capital's $217 target, supports this bullish outlook. Key factors include the company's robust dividend history and analyst confidence in its growth potential.

ARES has a total of 2850 employees.