Ares Management (NYSE:ARES) Shares Gap Down – Should You Sell?

Ares Management Corporation (NYSE:ARES)’s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $128.28, but opened at $121.10. Ares Management shares last traded at $121.71, with a volume of 416,282 shares traded.

Analyst Ratings Changes

Several analysts recently issued reports on the company. Zacks Research upgraded Ares Management from a “strong sell” rating to a “hold” rating in a report on Tuesday, May 5th. Royal Bank Of Canada reiterated an “outperform” rating on shares of Ares Management in a report on Wednesday, April 29th. Deutsche Bank Aktiengesellschaft upgraded Ares Management from a “hold” rating to a “buy” rating and cut their price objective for the stock from $182.00 to $155.00 in a report on Friday, February 6th. UBS Group set a $148.00 target price on Ares Management in a report on Friday, February 20th. Finally, Barclays raised their target price on Ares Management from $127.00 to $140.00 and gave the company an “overweight” rating in a report on Monday, May 4th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, Ares Management presently has a consensus rating of “Moderate Buy” and a consensus price target of $162.56.

Ares Management Trading Up 6.0%

The company has a fifty day simple moving average of $117.11 and a two-hundred day simple moving average of $135.45. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.23 and a quick ratio of 0.23. The company has a market capitalization of $43.06 billion, a P/E ratio of 60.72, a price-to-earnings-growth ratio of 1.08 and a beta of 1.51.

Ares Management (NYSE:ARES) last posted its earnings results on Friday, May 1st. The asset manager reported $1.24 earnings per share for the quarter, missing the consensus estimate of $1.32 by ($0.08). Ares Management had a net margin of 10.54% and a return on equity of 22.14%. The company had revenue of $1.40 billion for the quarter, compared to the consensus estimate of $1.28 billion. During the same quarter last year, the business earned $1.09 earnings per share. On average, analysts forecast that Ares Management Corporation will post 6.06 earnings per share for the current fiscal year.

Ares Management Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th will be paid a $1.35 dividend. The ex-dividend date is Tuesday, June 16th. This represents a $5.40 dividend on an annualized basis and a dividend yield of 4.1%. Ares Management’s payout ratio is presently 251.16%.

Hedge Funds Weigh In On Ares Management

A number of institutional investors have recently made changes to their positions in the business. DV Trading LLC increased its stake in shares of Ares Management by 214,600.0% in the first quarter. DV Trading LLC now owns 2,147 shares of the asset manager’s stock worth $234,000 after purchasing an additional 2,146 shares during the period. Glenmede Trust Co. NA boosted its position in shares of Ares Management by 138.1% in the first quarter. Glenmede Trust Co. NA now owns 4,234 shares of the asset manager’s stock valued at $462,000 after acquiring an additional 2,456 shares during the period. GKV Capital Management Co. Inc. acquired a new stake in shares of Ares Management in the first quarter worth $109,000. SOA Wealth Advisors LLC. acquired a new stake in shares of Ares Management in the first quarter worth $110,000. Finally, Western Wealth Management LLC bought a new position in Ares Management during the first quarter worth $50,000. 50.03% of the stock is currently owned by institutional investors.

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.