Ares Management (ARES) Soars 4.09% on Strategic Moves, Record Commitments

Ares Management (ARES) shares surged 4.09% intraday, marking the highest level since March 2025, with a 2.33% increase over the past two days, totaling a 3.90% gain.

The strategy of buying ARES shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, but underperformed the market. The annualized return was 12.68%, compared to the S&P 500's 17.33% over the same period. While the strategy provided a decent return, it missed out on the broader market's performance, making it less attractive for investors seeking maximum gains.

Ares Management's stock price has been influenced by several strategic moves and positive developments. The company's strategic investment in Awayday has sparked optimism about potential growth opportunities and increased value. This investment is seen as a forward-thinking move that could drive future earnings and market position.

Additionally, Ares Management reported a record high in new commitments, totaling $15 billion, which is double the amount from 2023. This significant increase underscores the company's strong business performance and the confidence investors have in its future prospects. The surge in new commitments is a clear indicator of Ares' ability to attract capital and execute on its investment strategies.

Multiple financial institutions have also raised their price targets for Ares Management, reflecting a positive outlook on the company's future performance. JMP increased its price target from $165 to $185, while Barclays raised its target from $142 to $182. Both institutions maintained positive ratings, suggesting that analysts expect continued growth in Ares' stock value.

Furthermore, Ares Management is nearing the final close on its seventh corporate opportunities fund. This successful fundraising effort highlights the company's ability to attract capital and its potential for future investments. The new fund is expected to provide Ares with additional resources to pursue strategic opportunities and drive long-term growth.