Ares Management (NYSE:ARES) Posts Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Ares Management (NYSE:ARES) announced its quarterly earnings results on Monday. The asset manager reported $1.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.14 by $0.05, Zacks reports. Ares Management had a net margin of 9.47% and a return on equity of 15.81%. The company had revenue of $1.07 billion during the quarter, compared to analyst estimates of $1.03 billion. During the same quarter in the previous year, the business earned $0.55 EPS.

Ares Management Trading Up 0.9%

Ares Management stock opened at $148.68 on Monday. The firm has a 50-day moving average of $163.70 and a 200-day moving average of $168.71. Ares Management has a one year low of $110.63 and a one year high of $200.49. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.08 and a quick ratio of 1.08. The company has a market cap of $48.57 billion, a price-to-earnings ratio of 85.94, a P/E/G ratio of 1.19 and a beta of 1.43.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on ARES. Morgan Stanley lowered their target price on Ares Management from $178.00 to $175.00 and set an “equal weight” rating for the company in a report on Tuesday, October 21st. Barclays lowered their target price on Ares Management from $200.00 to $187.00 and set an “overweight” rating for the company in a report on Wednesday, October 8th. BMO Capital Markets began coverage on Ares Management in a report on Friday, October 3rd. They set a “market perform” rating and a $156.00 target price for the company. Keefe, Bruyette & Woods increased their target price on Ares Management from $193.00 to $203.00 and gave the stock an “outperform” rating in a report on Monday, August 4th. Finally, Bank of America increased their target price on Ares Management from $196.00 to $197.00 and gave the stock a “buy” rating in a report on Friday, October 3rd. Thirteen research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $181.93.

Insider Transactions at Ares Management

In other news, Chairman Antony P. Ressler sold 196,197 shares of the stock in a transaction dated Tuesday, August 26th. The shares were sold at an average price of $178.79, for a total transaction of $35,078,061.63. Following the completion of the transaction, the chairman directly owned 1,424,538 shares in the company, valued at $254,693,149.02. This represents a 12.11% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Michael J. Arougheti sold 136,516 shares of the stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $182.74, for a total transaction of $24,946,933.84. Following the transaction, the chief executive officer owned 311,728 shares of the company’s stock, valued at approximately $56,965,174.72. This represents a 30.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 2,590,000 shares of company stock valued at $464,430,639. Company insiders own 36.86% of the company’s stock.

Hedge Funds Weigh In On Ares Management

A number of large investors have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Ares Management by 5.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,344 shares of the asset manager’s stock worth $197,000 after buying an additional 70 shares during the last quarter. Smartleaf Asset Management LLC lifted its stake in Ares Management by 31.0% in the 2nd quarter. Smartleaf Asset Management LLC now owns 977 shares of the asset manager’s stock valued at $169,000 after purchasing an additional 231 shares during the last quarter. Focus Partners Wealth lifted its stake in Ares Management by 15.3% in the 1st quarter. Focus Partners Wealth now owns 1,902 shares of the asset manager’s stock valued at $279,000 after purchasing an additional 252 shares during the last quarter. Baird Financial Group Inc. lifted its stake in Ares Management by 9.2% in the 2nd quarter. Baird Financial Group Inc. now owns 3,580 shares of the asset manager’s stock valued at $620,000 after purchasing an additional 301 shares during the last quarter. Finally, The Manufacturers Life Insurance Company lifted its stake in Ares Management by 0.3% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 119,650 shares of the asset manager’s stock valued at $20,723,000 after purchasing an additional 313 shares during the last quarter. 50.03% of the stock is currently owned by institutional investors and hedge funds.

Ares Management Company Profile

Ares Management Corporation operates as an alternative asset manager in the United States, Europe, and Asia. The company's Tradable Credit Group segment manages various types of investment funds, such as commingled and separately managed accounts for institutional investors, and publicly traded vehicles and sub-advised funds for retail investors in the tradable and non-investment grade corporate credit markets.