Ares Management (NYSE:ARES) Hits New 1-Year Low – Should You Sell?

Ares Management Corporation (NYSE:ARES) shares reached a new 52-week low on Tuesday . The company traded as low as $105.78 and last traded at $107.9970, with a volume of 305487 shares. The stock had previously closed at $108.85.

Wall Street Analysts Forecast Growth

ARES has been the subject of a number of research reports. UBS Group set a $148.00 price target on Ares Management in a research note on Friday, February 20th. Weiss Ratings restated a “hold (c)” rating on shares of Ares Management in a report on Monday, December 29th. Oppenheimer decreased their target price on Ares Management from $224.00 to $215.00 and set an “outperform” rating for the company in a research note on Friday, February 6th. Wall Street Zen lowered Ares Management from a “hold” rating to a “sell” rating in a report on Saturday, February 28th. Finally, The Goldman Sachs Group dropped their price target on shares of Ares Management from $189.00 to $165.00 and set a “buy” rating on the stock in a research report on Friday, February 6th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, Ares Management currently has a consensus rating of “Moderate Buy” and an average price target of $182.67.

Ares Management Price Performance

The company has a fifty day simple moving average of $141.68 and a 200-day simple moving average of $154.89. The company has a market cap of $34.08 billion, a P/E ratio of 61.20, a PEG ratio of 0.80 and a beta of 1.55. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.22 and a quick ratio of 1.22.

Ares Management (NYSE:ARES) last released its quarterly earnings data on Thursday, February 5th. The asset manager reported $1.45 earnings per share for the quarter, missing the consensus estimate of $1.71 by ($0.26). The company had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.38 billion. Ares Management had a return on equity of 19.04% and a net margin of 9.41%.During the same period in the prior year, the business earned $0.55 earnings per share. On average, sell-side analysts predict 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. Investors of record on Tuesday, March 17th will be given a $1.35 dividend. This is a positive change from Ares Management’s previous quarterly dividend of $0.84. The ex-dividend date is Tuesday, March 17th. This represents a $5.40 dividend on an annualized basis and a dividend yield of 5.2%. Ares Management’s dividend payout ratio is 265.09%.

Insider Transactions at Ares Management

In related news, Director Ashish Bhutani purchased 10,000 shares of the company’s stock in a transaction that occurred on Friday, February 6th. The shares were purchased at an average price of $126.61 per share, with a total value of $1,266,100.00. Following the purchase, 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 acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Judy D. Olian acquired 480 shares of the business’s stock in a transaction on Friday, February 20th. The shares were bought at an average price of $124.43 per share, for a total transaction of $59,726.40. Following the acquisition, the director owned 29,734 shares in the company, valued at approximately $3,699,801.62. This trade represents a 1.64% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 36.86% of the company’s stock.

Institutional Investors Weigh In On Ares Management

Large investors have recently made changes to their positions in the company. Vanguard Group Inc. boosted its stake in Ares Management by 20.2% in the 4th 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. Massachusetts Financial Services Co. MA raised its stake in Ares Management by 26.3% during 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 purchasing an additional 1,187,174 shares during the period. Geode Capital Management LLC raised its stake in Ares Management by 55.7% during the 4th quarter. Geode Capital Management LLC now owns 5,489,004 shares of the asset manager’s stock valued at $883,716,000 after purchasing an additional 1,963,460 shares during the period. Capital International Investors lifted its holdings in shares of Ares Management by 0.3% in the fourth quarter. Capital International Investors now owns 4,257,710 shares of the asset manager’s stock valued at $688,176,000 after purchasing an additional 14,516 shares in the last quarter. Finally, Principal Financial Group Inc. lifted its holdings in shares of Ares Management by 8.6% in the fourth quarter. Principal Financial Group Inc. now owns 3,839,693 shares of the asset manager’s stock valued at $620,616,000 after purchasing an additional 304,920 shares in the last quarter. Institutional investors and hedge funds 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.