Ares Management (NYSE:ARES) Shares Up 5.4% – Time to Buy?
by Tristan Rich · The Markets DailyAres Management Corporation (NYSE:ARES – Get Free Report) rose 5.4% on Friday . The stock traded as high as $102.81 and last traded at $101.6640. Approximately 2,825,327 shares traded hands during mid-day trading, a decline of 23% from the average daily volume of 3,687,216 shares. The stock had previously closed at $96.50.
Analyst Ratings Changes
A number of research firms have weighed in on ARES. Raymond James Financial upgraded Ares Management from a “market perform” rating to a “strong-buy” rating and set a $157.00 price target for the company in a research note on Monday, February 9th. Oppenheimer lowered their target price on shares of Ares Management from $224.00 to $215.00 and set an “outperform” rating on the stock in a report on Friday, February 6th. Morgan Stanley set a $178.00 price target on shares of Ares Management in a research note on Tuesday, January 27th. Wall Street Zen cut shares of Ares Management from a “hold” rating to a “sell” rating in a report on Saturday, February 28th. Finally, Royal Bank Of Canada reduced their price target on Ares Management from $180.00 to $173.00 and set an “outperform” rating for the company in a report on Tuesday, February 24th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $182.67.
Read Our Latest Research Report on ARES
Ares Management Stock Up 5.2%
The firm has a market cap of $33.45 billion, a P/E ratio of 60.13, a P/E/G ratio of 0.76 and a beta of 1.55. The firm’s fifty day moving average is $140.37 and its 200 day moving average is $154.48. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.22 and a current ratio of 1.22.
Ares Management (NYSE:ARES – Get Free Report) last issued its quarterly earnings data on Thursday, February 5th. The asset manager reported $1.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.71 by ($0.26). Ares Management had a return on equity of 19.04% and a net margin of 9.41%.The company had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.38 billion. During the same quarter last year, the business earned $0.55 earnings per share. As a group, equities research analysts anticipate that Ares Management Corporation will post 5.28 earnings per share for the current fiscal year.
Ares Management Increases Dividend
The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th will be issued a dividend of $1.35 per share. This is an increase from Ares Management’s previous quarterly dividend of $0.84. This represents a $5.40 dividend on an annualized basis and a dividend yield of 5.3%. The ex-dividend date of this dividend is Tuesday, March 17th. Ares Management’s payout ratio is 265.09%.
Insider Transactions at Ares Management
In other Ares Management news, Director Judy D. Olian purchased 480 shares of the firm’s stock in a transaction that occurred on Friday, February 20th. The shares were acquired at an average cost of $124.43 per share, for a total transaction of $59,726.40. Following the completion of the purchase, the director owned 29,734 shares of the company’s stock, valued at approximately $3,699,801.62. The trade was a 1.64% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Ashish Bhutani purchased 10,000 shares of the stock in a transaction that occurred on Friday, February 6th. The shares were acquired at an average cost of $126.61 per share, for a total transaction of $1,266,100.00. Following the completion of the transaction, the director owned 34,071 shares of the company’s stock, valued at $4,313,729.31. This trade represents a 41.54% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 36.86% of the company’s stock.
Institutional Trading of Ares Management
A number of institutional investors have recently modified their holdings of ARES. Vanguard Group Inc. increased its position in shares of Ares Management by 20.2% in the fourth quarter. Vanguard Group Inc. now owns 26,050,425 shares of the asset manager’s stock worth $4,210,530,000 after purchasing an additional 4,373,955 shares during the period. Norges Bank bought a new stake in Ares Management during the fourth quarter worth about $396,165,000. Geode Capital Management LLC grew its stake in Ares Management by 55.7% during the fourth quarter. Geode Capital Management LLC now owns 5,489,004 shares of the asset manager’s stock worth $883,716,000 after buying an additional 1,963,460 shares in the last quarter. Massachusetts Financial Services Co. MA increased its holdings in Ares Management by 26.3% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 5,705,599 shares of the asset manager’s stock valued at $922,196,000 after buying an additional 1,187,174 shares during the period. Finally, Winslow Capital Management LLC acquired a new position in shares of Ares Management in the 2nd quarter valued at approximately $161,774,000. 50.03% of the stock is currently owned by institutional investors.
About Ares Management
Ares Management Corporation (NYSE: ARES) is a global alternative asset manager that provides investment solutions across credit, private equity and real estate. The firm originates and manages capital across a range of strategies including direct lending, syndicated and special situations credit, private equity buyouts and growth investments, and real estate equity and debt. Ares serves institutional investors, insurance companies, pension funds, sovereign wealth funds, and high‑net‑worth clients through both commingled funds and bespoke managed account structures.
Within credit, Ares offers strategies spanning leveraged loans, structured credit, opportunistic and distressed debt, and specialty finance, with an emphasis on underwriting, portfolio construction and active asset management.