Ares Management (NYSE:ARES) Reaches New 1-Year Low – Time to Sell?

Shares of Ares Management Corporation (NYSE:ARES) reached a new 52-week low during trading on Friday . The stock traded as low as $110.59 and last traded at $111.3380, with a volume of 1172228 shares traded. The stock had previously closed at $118.08.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on ARES shares. TD Cowen reiterated a “buy” rating on shares of Ares Management in a research note on Wednesday, January 14th. Raymond James Financial raised shares of Ares Management from a “market perform” rating to a “strong-buy” rating and set a $157.00 price target on the stock in a research note on Monday, February 9th. The Goldman Sachs Group cut their price objective on Ares Management from $189.00 to $165.00 and set a “buy” rating for the company in a report on Friday, February 6th. Barclays reduced their price objective 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. Finally, Oppenheimer lowered their target price on Ares Management from $224.00 to $215.00 and set an “outperform” rating on the stock in a research note on Friday, February 6th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $182.67.

Ares Management Stock Down 6.6%

The company has a current ratio of 0.22, a quick ratio of 0.22 and a debt-to-equity ratio of 0.62. The business’s fifty day moving average price is $151.75 and its two-hundred day moving average price is $159.75. The firm has a market cap of $36.06 billion, a P/E ratio of 65.47, a P/E/G ratio of 0.72 and a beta of 1.52.

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

Ares Management Increases Dividend

The business also recently disclosed 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. The ex-dividend date of this dividend is Tuesday, March 17th. This represents a $5.40 dividend on an annualized basis and a dividend yield of 4.9%. This is a positive change from Ares Management’s previous quarterly dividend of $0.84. Ares Management’s payout ratio is currently 319.53%.

Insider Activity at Ares Management

In related news, Director Ashish Bhutani purchased 10,000 shares of the stock in a transaction on Friday, February 6th. The shares were bought at an average price of $126.61 per share, for a total transaction of $1,266,100.00. Following the completion of the acquisition, the director directly owned 34,071 shares in the company, valued at approximately $4,313,729.31. This trade represents a 41.54% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Judy D. Olian purchased 480 shares of the company’s stock in a transaction dated Friday, February 20th. The stock was purchased at an average cost of $124.43 per share, for a total transaction of $59,726.40. Following the transaction, the director owned 29,734 shares of the company’s stock, valued at approximately $3,699,801.62. This trade represents a 1.64% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 36.86% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC lifted its position in Ares Management by 116.7% during the 1st quarter. AQR Capital Management LLC now owns 10,360 shares of the asset manager’s stock worth $1,519,000 after acquiring an additional 5,579 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Ares Management by 5.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,344 shares of the asset manager’s stock valued at $197,000 after purchasing an additional 70 shares during the last quarter. Empowered Funds LLC increased its stake in shares of Ares Management by 42.7% in the first quarter. Empowered Funds LLC now owns 6,197 shares of the asset manager’s stock worth $909,000 after purchasing an additional 1,853 shares during the period. Focus Partners Wealth lifted its position in shares of Ares Management by 15.3% during the 1st quarter. Focus Partners Wealth now owns 1,902 shares of the asset manager’s stock worth $279,000 after purchasing an additional 252 shares during the last quarter. Finally, Geneos Wealth Management Inc. lifted its position in shares of Ares Management by 708.2% during the 1st quarter. Geneos Wealth Management Inc. now owns 493 shares of the asset manager’s stock worth $72,000 after purchasing an additional 432 shares during the last quarter. 50.03% of the stock is currently owned by institutional investors and hedge funds.

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.