Key Points
- CEO Michael Arougheti sold 112,806 shares on Nov. 24 at an average of $150.15 for about $16.94M, reducing his holding by 19.12% to 477,194 shares.
- Quarterly results beat: Ares reported $1.19 EPS versus $1.14 expected and revenue of $1.66B (vs. $1.03B expected); analysts' consensus is a Moderate Buy with an average target of $187.46.
- The company declared a quarterly dividend of $0.8438 (annualized $3.38, 2.2% yield) but the payout ratio is a high 192.27%, signaling potential sustainability concerns.
Ares Management Corporation (NYSE:ARES - Get Free Report) CEO Michael Arougheti sold 112,806 shares of the firm's stock in a transaction dated Monday, November 24th. The stock was sold at an average price of $150.15, for a total transaction of $16,937,820.90. Following the sale, the chief executive officer owned 477,194 shares of the company's stock, valued at approximately $71,650,679.10. This represents a 19.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link.
Ares Management Stock Up 1.8%
Shares of ARES opened at $152.85 on Wednesday. The firm has a market cap of $49.96 billion, a P/E ratio of 88.35, a price-to-earnings-growth ratio of 1.19 and a beta of 1.45. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.08 and a current ratio of 1.08. Ares Management Corporation has a 52 week low of $110.63 and a 52 week high of $200.49. The firm's 50-day simple moving average is $153.74 and its 200 day simple moving average is $168.36.
Ares Management (NYSE:ARES - Get Free Report) last issued its quarterly earnings data on Friday, October 31st. The asset manager reported $1.19 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.14 by $0.05. Ares Management had a return on equity of 15.81% and a net margin of 9.47%.The company had revenue of $1.66 billion during the quarter, compared to analysts' expectations of $1.03 billion. During the same quarter in the previous year, the company posted $0.55 earnings per share. On average, analysts forecast that Ares Management Corporation will post 5.28 earnings per share for the current year.
Ares Management Cuts Dividend
The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 31st. Investors of record on Wednesday, December 17th will be paid a $0.8438 dividend. The ex-dividend date is Wednesday, December 17th. This represents a $3.38 annualized dividend and a yield of 2.2%. Ares Management's payout ratio is 192.27%.
Analysts Set New Price Targets
Several research firms have weighed in on ARES. Weiss Ratings reiterated a "hold (c+)" rating on shares of Ares Management in a research report on Monday. Morgan Stanley decreased their price target on shares of Ares Management from $178.00 to $175.00 and set an "equal weight" rating on the stock in a research note on Tuesday, October 21st. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $215.00 price target on shares of Ares Management in a research report on Monday, September 29th. BMO Capital Markets initiated coverage on shares of Ares Management in a research note on Friday, October 3rd. They issued a "market perform" rating and a $156.00 price objective for the company. Finally, Bank of America boosted their price objective on shares of Ares Management from $196.00 to $197.00 and gave the company a "buy" rating in a report on Friday, October 3rd. Thirteen equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $187.46.
Read Our Latest Analysis on ARES
Institutional Inflows and Outflows
A number of hedge funds have recently modified their holdings of the stock. Norges Bank bought a new stake in Ares Management during the second quarter worth about $328,910,000. Vanguard Group Inc. increased its holdings in Ares Management by 9.1% in the 2nd quarter. Vanguard Group Inc. now owns 20,936,367 shares of the asset manager's stock valued at $3,626,179,000 after buying an additional 1,746,376 shares during the period. Winslow Capital Management LLC acquired a new position in shares of Ares Management in the 2nd quarter valued at approximately $161,774,000. Marshall Wace LLP raised its position in shares of Ares Management by 487.4% in the 3rd quarter. Marshall Wace LLP now owns 912,656 shares of the asset manager's stock valued at $145,925,000 after buying an additional 757,293 shares in the last quarter. Finally, Balyasny Asset Management L.P. lifted its holdings in shares of Ares Management by 1,172.9% during the 3rd quarter. Balyasny Asset Management L.P. now owns 622,796 shares of the asset manager's stock worth $99,579,000 after acquiring an additional 573,870 shares during the period. Institutional investors own 50.03% of the company's stock.
Ares Management Company Profile
(
Get Free Report)
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.
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