Key Points
- CEO Michael Arougheti sold 56,257 shares on Dec. 1 at an average price of $157.26 for a total of about $8.85 million, as disclosed in an SEC filing.
- Q3 beat expectations: Ares reported $1.19 EPS vs. $1.14 expected and revenue of $1.66 billion vs. $1.03 billion, with sell-side analysts forecasting roughly 5.28 EPS for the year.
- The company declared a quarterly dividend of $0.8438 (annualized $3.38, ~2.1% yield), but its dividend payout ratio is an elevated 192.27%, suggesting the payout may be unsustainably high.
Ares Management Corporation (NYSE:ARES - Get Free Report) CEO Michael Arougheti sold 56,257 shares of the stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $157.26, for a total transaction of $8,846,975.82. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink.
Ares Management Stock Performance
NYSE ARES opened at $159.56 on Tuesday. The stock has a market cap of $52.15 billion, a PE ratio of 92.23, a P/E/G 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. The firm has a 50-day moving average of $151.70 and a 200-day moving average of $167.90. Ares Management Corporation has a 52-week low of $110.63 and a 52-week high of $200.49.
Ares Management (NYSE:ARES - Get Free Report) last released its quarterly earnings results on Friday, October 31st. The asset manager reported $1.19 earnings per share for the quarter, beating the consensus estimate of $1.14 by $0.05. The firm had revenue of $1.66 billion for the quarter, compared to analysts' expectations of $1.03 billion. Ares Management had a net margin of 9.47% and a return on equity of 15.81%. During the same period in the prior year, the firm earned $0.55 EPS. On average, sell-side analysts anticipate that Ares Management Corporation will post 5.28 EPS 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 issued a dividend of $0.8438 per share. This represents a $3.38 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Wednesday, December 17th. Ares Management's dividend payout ratio (DPR) is presently 192.27%.
Hedge Funds Weigh In On Ares Management
Several hedge funds and other institutional investors have recently made changes to their positions in ARES. Exchange Traded Concepts LLC boosted its position in shares of Ares Management by 100.0% during the 3rd quarter. Exchange Traded Concepts LLC now owns 190 shares of the asset manager's stock worth $30,000 after acquiring an additional 95 shares in the last quarter. Financial Network Wealth Advisors LLC bought a new stake in Ares Management during the first quarter worth $31,000. Elevation Point Wealth Partners LLC acquired a new stake in shares of Ares Management in the 2nd quarter valued at $35,000. Banque Transatlantique SA acquired a new stake in shares of Ares Management in the 1st quarter valued at $39,000. Finally, Redmont Wealth Advisors LLC bought a new position in shares of Ares Management in the 3rd quarter valued at $40,000. 50.03% of the stock is currently owned by institutional investors and hedge funds.
Analyst Ratings Changes
A number of research analysts have commented on the company. Barclays decreased their price objective on Ares Management from $200.00 to $187.00 and set an "overweight" rating on the stock in a report on Wednesday, October 8th. Oppenheimer set a $190.00 price target on shares of Ares Management and gave the company an "outperform" rating in a research note on Tuesday, November 4th. Bank of America raised their price target on shares of Ares Management from $196.00 to $197.00 and gave the stock a "buy" rating in a research report on Friday, October 3rd. Citigroup reissued a "market outperform" rating on shares of Ares Management in a report on Tuesday, October 21st. Finally, TD Cowen increased their target price on shares of Ares Management from $175.00 to $197.00 and gave the stock a "buy" rating in a research report on Tuesday, November 4th. Thirteen investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $187.46.
Check Out Our Latest Stock Analysis on Ares Management
About Ares Management
(
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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