Ares Management (NYSE:ARES) Shares Up 5.5% on Better-Than-Expected Earnings

Ares Management Corporation (NYSE:ARES) traded up 5.5% during trading on Monday following a stronger than expected earnings report. The stock traded as high as $159.07 and last traded at $156.8750. 574,997 shares traded hands during mid-day trading, a decline of 66% from the average session volume of 1,690,980 shares. The stock had previously closed at $148.71.

The asset manager reported $1.19 earnings per share for the quarter, beating analysts’ consensus estimates of $1.14 by $0.05. The firm had revenue of $1.07 billion during 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 quarter in the previous year, the business posted $0.55 earnings per share.

Ares Management Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 31st. Investors of record on Wednesday, December 17th will be issued a $0.8438 dividend. The ex-dividend date is Wednesday, December 17th. This represents a $3.38 dividend on an annualized basis and a dividend yield of 2.2%. Ares Management’s payout ratio is 258.96%.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on ARES. Royal Bank Of Canada restated an “outperform” rating and issued a $215.00 price objective on shares of Ares Management in a report on Monday, September 29th. Cfra Research upgraded Ares Management to a “moderate buy” rating in a research note on Monday, August 4th. Barclays cut their target price on shares of Ares Management from $200.00 to $187.00 and set an “overweight” rating on the stock in a research note on Wednesday, October 8th. Morgan Stanley reduced their target price on shares of Ares Management from $178.00 to $175.00 and set an “equal weight” rating on the stock in a report on Tuesday, October 21st. Finally, Wells Fargo & Company boosted their price target on shares of Ares Management from $189.00 to $202.00 and gave the stock an “overweight” rating in a report on Friday, July 11th. Thirteen equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $181.93.

Insider Activity at Ares Management

In other Ares Management news, Chairman Antony P. Ressler sold 196,197 shares of the firm’s stock in a transaction that occurred on Tuesday, August 26th. The shares were sold at an average price of $178.79, for a total transaction of $35,078,061.63. Following the sale, the chairman owned 1,424,538 shares of the company’s stock, valued at approximately $254,693,149.02. This trade represents a 12.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Michael J. Arougheti sold 136,516 shares of the company’s stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $182.74, for a total transaction of $24,946,933.84. Following the completion of the transaction, the chief executive officer owned 311,728 shares of the company’s stock, valued at approximately $56,965,174.72. The trade was a 30.46% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 2,590,000 shares of company stock worth $464,430,639 over the last quarter. 36.86% of the stock is currently owned by insiders.

Institutional Trading of Ares Management

Several institutional investors and hedge funds have recently made changes to their positions in ARES. Nemes Rush Group LLC grew its stake in Ares Management by 3.1% during the 2nd quarter. Nemes Rush Group LLC now owns 1,745 shares of the asset manager’s stock worth $302,000 after buying an additional 52 shares during the last quarter. New York Life Investment Management LLC boosted its holdings in shares of Ares Management by 2.0% in the second quarter. New York Life Investment Management LLC now owns 3,083 shares of the asset manager’s stock valued at $534,000 after acquiring an additional 59 shares during the period. First Horizon Advisors Inc. grew its position in shares of Ares Management by 10.3% during the second quarter. First Horizon Advisors Inc. now owns 630 shares of the asset manager’s stock worth $109,000 after acquiring an additional 59 shares during the last quarter. MGO One Seven LLC grew its position in shares of Ares Management by 1.3% during the second quarter. MGO One Seven LLC now owns 4,576 shares of the asset manager’s stock worth $793,000 after acquiring an additional 60 shares during the last quarter. Finally, Smartleaf Asset Management LLC increased its holdings in shares of Ares Management by 9.1% in the 1st quarter. Smartleaf Asset Management LLC now owns 746 shares of the asset manager’s stock valued at $108,000 after acquiring an additional 62 shares during the period. 50.03% of the stock is owned by hedge funds and other institutional investors.

Ares Management Stock Performance

The stock has a market cap of $50.80 billion, a PE ratio of 89.87, a P/E/G ratio of 1.19 and a beta of 1.43. The firm’s 50-day moving average is $163.24 and its 200 day moving average is $168.81. 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 Company Profile

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.