Ares Management (NYSE:ARES) Sets New 1-Year High – Here’s Why

Ares Management Co. (NYSE:ARES) shares hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $177.45 and last traded at $177.45, with a volume of 695 shares trading hands. The stock had previously closed at $167.45.

Wall Street Analysts Forecast Growth

ARES has been the subject of a number of research reports. UBS Group increased their target price on Ares Management from $158.00 to $195.00 and gave the stock a “buy” rating in a research note on Tuesday, October 22nd. Royal Bank of Canada increased their target price on Ares Management from $170.00 to $185.00 and gave the stock an “outperform” rating in a report on Monday, November 4th. Barclays boosted their price objective on shares of Ares Management from $155.00 to $174.00 and gave the stock an “overweight” rating in a research report on Monday, October 7th. Morgan Stanley increased their price objective on shares of Ares Management from $136.00 to $162.00 and gave the stock an “equal weight” rating in a research note on Thursday, October 10th. Finally, JPMorgan Chase & Co. decreased their price target on Ares Management from $176.00 to $174.00 and set an “overweight” rating for the company in a research note on Tuesday, November 5th. Six analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $166.36.

Ares Management Stock Down 1.1 %

The company has a market cap of $52.30 billion, a price-to-earnings ratio of 77.00, a P/E/G ratio of 1.82 and a beta of 1.20. The firm has a 50-day moving average price of $160.15 and a 200 day moving average price of $147.57. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.05 and a quick ratio of 1.05.

Ares Management (NYSE:ARES) last posted its quarterly earnings data on Friday, November 1st. The asset manager reported $0.95 earnings per share for the quarter, topping the consensus estimate of $0.94 by $0.01. The firm had revenue of $1.13 billion for the quarter, compared to analysts’ expectations of $833.58 million. Ares Management had a return on equity of 19.89% and a net margin of 12.51%. During the same quarter last year, the business earned $0.83 EPS. Sell-side analysts predict that Ares Management Co. will post 4.07 EPS for the current year.

Ares Management Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 31st. Shareholders of record on Tuesday, December 17th will be issued a $0.93 dividend. This represents a $3.72 dividend on an annualized basis and a yield of 2.23%. The ex-dividend date is Tuesday, December 17th. Ares Management’s dividend payout ratio is currently 171.43%.

Insiders Place Their Bets

In related news, insider Ryan Berry sold 57,500 shares of the business’s stock in a transaction dated Thursday, September 5th. The stock was sold at an average price of $140.74, for a total value of $8,092,550.00. Following the completion of the transaction, the insider now owns 456,702 shares of the company’s stock, valued at $64,276,239.48. The trade was a 11.18 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Michael J. Arougheti sold 10,223 shares of the stock in a transaction dated Monday, August 19th. The stock was sold at an average price of $144.47, for a total transaction of $1,476,916.81. Following the sale, the chief executive officer now owns 191,546 shares in the company, valued at $27,672,650.62. The trade was a 5.07 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 561,280 shares of company stock worth $83,030,436 in the last quarter. Corporate insiders own 1.20% of the company’s stock.

Institutional Investors Weigh In On Ares Management

Several institutional investors and hedge funds have recently added to or reduced their stakes in ARES. Russell Investments Group Ltd. lifted its stake in Ares Management by 23.4% in the 1st quarter. Russell Investments Group Ltd. now owns 45,754 shares of the asset manager’s stock valued at $6,086,000 after purchasing an additional 8,666 shares during the last quarter. Avantax Advisory Services Inc. boosted its holdings in shares of Ares Management by 15.4% during the 1st quarter. Avantax Advisory Services Inc. now owns 3,109 shares of the asset manager’s stock valued at $413,000 after acquiring an additional 415 shares in the last quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. bought a new stake in Ares Management during the 1st quarter worth $968,000. Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in Ares Management by 26.7% in the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 91,417 shares of the asset manager’s stock worth $12,157,000 after purchasing an additional 19,280 shares in the last quarter. Finally, Blair William & Co. IL raised its position in Ares Management by 9.6% in the first quarter. Blair William & Co. IL now owns 65,144 shares of the asset manager’s stock valued at $8,663,000 after purchasing an additional 5,689 shares during the last quarter. 50.03% of the stock is currently owned by institutional investors.

About Ares Management

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.