Ares Management (NYSE:ARES) Shares Down 10.2% Following Weak Earnings

Ares Management Corporation (NYSE:ARES) shares fell 10.2% during trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $121.92 and last traded at $123.2250. 1,738,189 shares traded hands during mid-day trading, a decline of 35% from the average session volume of 2,655,325 shares. The stock had previously closed at $137.22.

The asset manager reported $1.45 earnings per share for the quarter, missing analysts’ consensus estimates of $1.72 by ($0.27). Ares Management had a net margin of 11.72% and a return on equity of 16.33%. The firm had revenue of $1.50 billion during the quarter, compared to analyst estimates of $1.38 billion. During the same period in the previous year, the firm posted $0.55 earnings per share.

Key Ares Management News

Here are the key news stories impacting Ares Management this week:

• Positive Sentiment: Record U.S. direct lending origination — Ares said its credit funds closed roughly $19.4 billion of new U.S. direct lending commitments in Q4 and about $55.0 billion for the full year, underscoring franchise growth and deal flow strength. Ares Announces Record Fourth Quarter and Full-Year 2025 U.S. Direct Lending Origination Activity
• Positive Sentiment: Revenue beat — Ares reported $1.50 billion of revenue for the quarter versus analyst estimates near $1.38 billion, showing top‑line momentum even as fee mix and earnings patterns evolve. Ares Management Corporation Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Analyst sentiment remains constructive — Brokerages show a consensus “Moderate Buy” rating, indicating analysts still see longer‑term upside despite the quarter’s mixed signals. Ares Management Given Consensus Recommendation of “Moderate Buy”
• Neutral Sentiment: Earnings came amid broader private‑credit attention — Pre‑earnings coverage emphasized the private credit boom and sector dynamics, which frame investor expectations for fees, deployment and credit performance. Ares Management set to report earnings amid private credit boom
• Negative Sentiment: EPS missed estimates — Ares reported $1.45 EPS for the quarter, below the Zacks/Street consensus (~$1.71–$1.72), which is the primary trigger for the selloff as investors punish the earnings shortfall. Ares Management Q4 Earnings and Revenues Miss Estimates
• Negative Sentiment: Low GAAP net income / EPS — GAAP net income attributable to Ares was $54.2 million (GAAP EPS $0.08), highlighting differences between distributable/fee income and GAAP results that may raise near‑term profitability questions for some investors. Ares Management Corporation Reports Fourth Quarter and Full Year 2025 Results

Analyst Ratings Changes

ARES has been the subject of several research analyst reports. TD Cowen reissued a “buy” rating on shares of Ares Management in a report on Wednesday, January 14th. UBS Group lowered their price objective on Ares Management from $201.00 to $198.00 and set a “neutral” rating on the stock in a research note on Tuesday, January 13th. Wolfe Research set a $210.00 target price on Ares Management and gave the stock an “outperform” rating in a report on Wednesday, January 7th. Weiss Ratings restated a “hold (c)” rating on shares of Ares Management in a report on Monday, December 29th. Finally, Oppenheimer reiterated an “outperform” rating and issued a $224.00 price objective on shares of Ares Management in a research note on Tuesday, January 20th. Twelve investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, Ares Management presently has an average rating of “Moderate Buy” and a consensus target price of $194.79.

Insider Activity at Ares Management

In related news, CEO Michael J. Arougheti sold 56,257 shares of the company’s stock in a transaction on Monday, December 1st. The shares were sold at an average price of $157.26, for a total value of $8,846,975.82. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. In the last 90 days, insiders have sold 590,000 shares of company stock valued at $90,653,808. 36.86% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. New York Life Investment Management LLC grew its position in shares of Ares Management by 1,033.1% during the 4th quarter. New York Life Investment Management LLC now owns 28,272 shares of the asset manager’s stock worth $4,570,000 after buying an additional 25,777 shares during the period. Granite Bay Wealth Management LLC grew its holdings in shares of Ares Management by 23.0% during the 4th quarter. Granite Bay Wealth Management LLC now owns 31,027 shares of the asset manager’s stock valued at $5,015,000 after purchasing an additional 5,795 shares during the last quarter. Pinnacle Associates Ltd. lifted its stake in Ares Management by 36.7% in the 4th quarter. Pinnacle Associates Ltd. now owns 3,326 shares of the asset manager’s stock valued at $538,000 after purchasing an additional 893 shares during the last quarter. Allworth Financial LP increased its holdings in shares of Ares Management by 4.6% during the fourth quarter. Allworth Financial LP now owns 6,937 shares of the asset manager’s stock worth $1,121,000 after buying an additional 304 shares in the last quarter. Finally, Oregon Public Employees Retirement Fund bought a new stake in Ares Management during the 4th quarter worth $3,814,000. Institutional investors and hedge funds own 50.03% of the company’s stock.

Ares Management Trading Down 9.0%

The company has a market cap of $40.81 billion, a P/E ratio of 53.62, a PEG ratio of 0.76 and a beta of 1.52. The firm’s 50 day moving average is $164.16 and its two-hundred day moving average is $165.96. The company has a quick ratio of 0.22, a current ratio of 0.22 and a debt-to-equity ratio of 0.62.

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.