Ares Management Target of Unusually High Options Trading (NYSE:ARES)

Ares Management Corporation (NYSE:ARES) saw unusually large options trading on Wednesday. Stock investors purchased 33,280 put options on the company. This represents an increase of approximately 685% compared to the typical volume of 4,241 put options.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on ARES. Morgan Stanley set a $178.00 target price on Ares Management in a report on Tuesday, January 27th. Weiss Ratings restated a “hold (c)” rating on shares of Ares Management in a research note on Monday, December 29th. Barclays dropped their price objective on shares of Ares Management from $222.00 to $190.00 and set an “overweight” rating for the company in a research note on Friday, February 6th. Wolfe Research set a $210.00 price objective on shares of Ares Management and gave the company an “outperform” rating in a report on Wednesday, January 7th. Finally, UBS Group set a $148.00 target price on shares of Ares Management in a research report on Friday, February 20th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, Ares Management presently has a consensus rating of “Moderate Buy” and a consensus price target of $182.67.

Ares Management Stock Performance

Ares Management stock opened at $105.89 on Thursday. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.86. The stock has a market cap of $34.89 billion, a PE ratio of 62.66, a P/E/G ratio of 0.77 and a beta of 1.55. Ares Management has a 12-month low of $95.80 and a 12-month high of $195.26. The business’s 50-day moving average price is $134.94 and its two-hundred day moving average price is $152.18.

Ares Management (NYSE:ARES) last posted its earnings results on Thursday, February 5th. The asset manager reported $1.45 EPS for the quarter, missing analysts’ consensus estimates of $1.71 by ($0.26). Ares Management had a return on equity of 19.04% and a net margin of 9.41%.The company had revenue of $1.50 billion during the quarter, compared to the consensus estimate of $1.38 billion. During the same period last year, the company posted $0.55 EPS. As a group, analysts expect that Ares Management will post 5.28 earnings per share for the current fiscal year.

Ares Management Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th will be paid a $1.35 dividend. This represents a $5.40 annualized dividend and a yield of 5.1%. The ex-dividend date of this dividend is Tuesday, March 17th. This is a positive change from Ares Management’s previous quarterly dividend of $0.84. Ares Management’s payout ratio is currently 319.53%.

Insider Activity at Ares Management

In other news, Director Ashish Bhutani bought 10,000 shares of the firm’s stock in a transaction dated Friday, February 6th. The shares were bought at an average price of $126.61 per share, with a total value of $1,266,100.00. Following the completion of the transaction, the director owned 34,071 shares of the company’s stock, valued at $4,313,729.31. This trade represents a 41.54% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Judy D. Olian bought 480 shares of the stock in a transaction dated Friday, February 20th. The shares were purchased at an average price of $124.43 per share, for a total transaction of $59,726.40. Following the purchase, the director owned 29,734 shares of the company’s stock, valued at $3,699,801.62. This trade represents a 1.64% increase in their position. The disclosure for this purchase is available in the SEC filing. 36.86% of the stock is currently owned by corporate insiders.

Institutional Trading of Ares Management

A number of hedge funds have recently added to or reduced their stakes in ARES. Exchange Traded Concepts LLC increased its holdings in shares of Ares Management by 100.0% during the third quarter. Exchange Traded Concepts LLC now owns 190 shares of the asset manager’s stock worth $30,000 after buying an additional 95 shares in the last quarter. Osbon Capital Management LLC bought a new position in shares of Ares Management in the 4th quarter valued at $32,000. Elevation Point Wealth Partners LLC acquired a new stake in shares of Ares Management during the 2nd quarter valued at $35,000. Redmont Wealth Advisors LLC acquired a new stake in shares of Ares Management during the 3rd quarter valued at $40,000. Finally, Atlantic Edge Private Wealth Management LLC bought a new stake in Ares Management during the 4th quarter worth $42,000. Institutional investors and hedge funds own 50.03% of the company’s stock.

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.