Ares Management Assessed as Undervalued Following Recent Stock Gains
Shares of Ares Management climbed to $139.58 as valuation models suggest potential upside, following third-quarter earnings that topped expectations.
Ares Management Corporation (NYSE: ARES) shares climbed 4.2% to $139.58 on November 09, 2026, amid updated valuation assessments. GuruFocus reported that its proprietary GF Value metric estimates a fair value of $172.86 for the alternative asset manager, indicating the stock is roughly 19.3% undervalued. GuruFocus assigned the company a GF Score of 85 out of 100, citing strengths in growth and profitability despite a lower score in financial strength. Over the past 52 weeks, the company's shares have fluctuated between $95.80 and $181.19.
The valuation update follows Ares Management's third-quarter financial report released on October 29, 2026. For the quarter ended September 30, 2026, the company recorded GAAP net income attributable to Ares Management of $85.3 million, or $0.21 per diluted share. After-tax realized income reached $449.6 million, translating to $1.26 per share, which topped consensus expectations of $1.25. Fee-related earnings totaled $524.2 million. Chief Executive Officer Michael Arougheti stated that the firm raised more than $31 billion in gross capital commitments and invested $35 billion during the quarter.
Quarterly revenue reached $1.43 billion, exceeding analyst estimates of $1.24 billion even as it declined 13.5% from the year-ago period. Alongside earnings, Ares declared a quarterly dividend of $1.35 per share of Class A and non-voting common stock, scheduled for payment on December 31, 2026, to shareholders of record as of December 17, 2026. The annualized payout of $5.40 represents an elevated dividend payout ratio of 435.48%. GuruFocus noted potential risks regarding dividend sustainability due to a negative free cash flow yield of -7.1%.
Wall Street brokerages maintain an overall consensus rating of "Moderate Buy" on Ares Management, according to MarketBeat. Out of 21 covering brokerages, one rates the stock a strong buy, 11 recommend a buy, and nine advise holding, with an average 12-month price target of $146.21. Recent analyst actions include Oppenheimer raising its target to $162.00, Royal Bank of Canada lifting its objective to $171.00, and Bank of America lowering its target to $156.00.
Institutional ownership in Ares stands at 50.03%, highlighted by recent third-quarter portfolio increases from Virginia Retirement Systems, CoreCap Advisors LLC, and Financial Network Wealth Advisors LLC. Conversely, GuruFocus reported notable insider activity over the trailing 12 months, with insiders purchasing $1.3 million in stock while selling $91.5 million, producing net insider sales of $90.2 million.