Ares Management (NYSE:ARES) Trading Down 6.7% – Here’s What Happened

Shares of Ares Management Corporation (NYSE:ARES) dropped 6.7% on Thursday . The company traded as low as $124.36 and last traded at $125.0280. Approximately 998,423 shares traded hands during mid-day trading, a decline of 68% from the average daily volume of 3,137,010 shares. The stock had previously closed at $133.97.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on ARES shares. UBS Group dropped their target price on shares of Ares Management from $201.00 to $198.00 and set a “neutral” rating for the company in a report on Tuesday, January 13th. Wolfe Research set a $210.00 price objective on shares of Ares Management and gave the company an “outperform” rating in a report on Wednesday, January 7th. Barclays dropped their price target on Ares Management from $222.00 to $190.00 and set an “overweight” rating for the company in a research report on Friday, February 6th. Royal Bank Of Canada decreased their target price on shares of Ares Management from $200.00 to $180.00 and set an “outperform” rating on the stock in a report on Monday, February 9th. Finally, Morgan Stanley set a $178.00 price objective on Ares Management in a research report on Tuesday, January 27th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, Ares Management has an average rating of “Moderate Buy” and a consensus target price of $186.47.

Ares Management Trading Down 5.2%

The business’s 50-day moving average price is $157.95 and its two-hundred day moving average price is $162.40. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.22 and a quick ratio of 0.22. The firm has a market cap of $41.51 billion, a price-to-earnings ratio of 75.12, a price-to-earnings-growth ratio of 0.79 and a beta of 1.52.

Ares Management (NYSE:ARES) last announced its quarterly earnings data on Thursday, February 5th. The asset manager reported $1.45 EPS for the quarter, missing analysts’ consensus estimates of $1.71 by ($0.26). Ares Management had a net margin of 9.41% and a return on equity of 19.26%. The business had revenue of $1.50 billion during the quarter, compared to analysts’ expectations of $1.38 billion. During the same period in the prior year, the firm earned $0.55 EPS. Equities analysts expect that Ares Management Corporation will post 5.28 earnings per share for the current year.

Ares Management Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be paid 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 yield of 4.3%. The ex-dividend date of this dividend is Tuesday, March 17th. Ares Management’s payout ratio is 265.09%.

Insider Buying and Selling at Ares Management

In related news, CEO Michael J. Arougheti sold 56,257 shares of the stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $157.26, for a total transaction of $8,846,975.82. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Ashish Bhutani purchased 10,000 shares of Ares Management stock in a transaction 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 represents a 41.54% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have sold a total of 590,000 shares of company stock valued at $90,653,808 over the last three months. Corporate insiders own 36.86% of the company’s stock.

Hedge Funds Weigh In On Ares Management

A number of hedge funds have recently made changes to their positions in ARES. Exchange Traded Concepts LLC lifted its stake in shares of Ares Management by 100.0% in the third quarter. Exchange Traded Concepts LLC now owns 190 shares of the asset manager’s stock worth $30,000 after acquiring an additional 95 shares in the last quarter. Elevation Point Wealth Partners LLC purchased a new stake in Ares Management during the 2nd quarter worth approximately $35,000. Redmont Wealth Advisors LLC purchased a new stake in Ares Management during the 3rd quarter worth approximately $40,000. Atlantic Edge Private Wealth Management LLC acquired a new position in shares of Ares Management in the 4th quarter valued at approximately $42,000. Finally, Elyxium Wealth LLC purchased a new position in shares of Ares Management during the 4th quarter valued at approximately $42,000. Hedge funds and other institutional investors own 50.03% of the company’s stock.

Ares Management Company Profile

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.