Ares Management Plunges 1.62% on $2.8B Volume Rank 320 as $2.5–$3.5B Pipeline Sale Looms Over Strategic Asset

Generado por agente de IAAinvest Market Brief
lunes, 25 de agosto de 2025, 7:44 pm ET1 min de lectura
ARES--

On August 25, 2025, Ares ManagementARES-- (ARES) closed down 1.62% with a trading volume of $280 million, ranking 320th in the stock market by volume. The firm’s 45% stake in the EPIC Crude pipeline, a 700-mile transport system linking Permian Basin production to Corpus Christi export hubs, is reportedly under review for a potential $2.5–$3.5 billion sale. The asset’s strategic value lies in its expandable 1 million barrel-per-day capacity, long-term minimum volume commitments (MVCs) through 2035, and proximity to key export infrastructure recently upgraded in June 2025.

Analysts highlight diverging views on the stock’s valuation. Thirteen Wall Street analysts project a 9.77% upside to an average price target of $195.54, while GuruFocus estimates a 10.87% downside to a GF Value of $158.76. The dual-track appeal of the pipeline—stable cash flows from MVCs for defensive investors and expansion-driven growth for aggressive buyers—has attracted speculation about potential bidders like Enterprise Products PartnersEPD--, which could pay a premium for its scale and strategic location. Ares’ decision to retain or divest its stake will likely influence midstream sector valuation benchmarks and Permian takeaway capacity dynamics.

Backtest results for a high-volume trading strategyMSTR-- show a compound annual growth rate (CAGR) of 6.98% from 2022 to 2025, with a maximum drawdown of 15.46% recorded in mid-2023. The strategy, which involved holding the top 500 volume stocks daily, demonstrated steady returns but underscored the risks of volatility in liquidity-driven markets.

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