Ares Management (NYSE:ARES) Shares Down 10.2% Following Weak Earnings

Ares Management Corporation (NYSE:ARES)’s share price traded down 10.2% during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $121.92 and last traded at $123.2250. 1,738,189 shares changed hands during mid-day trading, a decline of 35% from the average session volume of 2,655,325 shares. The stock had previously closed at $137.22.

The asset manager reported $1.45 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.71 by ($0.26). The business had revenue of $1.50 billion for the quarter, compared to analysts’ expectations of $1.38 billion. Ares Management had a net margin of 11.72% and a return on equity of 16.33%. During the same period last year, the business earned $0.55 earnings per share.

Ares Management Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th will be given a $1.35 dividend. The ex-dividend date of this dividend is Tuesday, March 17th. This represents a $5.40 dividend on an annualized basis and a dividend yield of 4.4%. This is an increase from Ares Management’s previous quarterly dividend of $0.84. Ares Management’s payout ratio is presently 192.27%.

Key Headlines Impacting Ares Management

Here are the key news stories impacting Ares Management this week:

• Positive Sentiment: Strong fundraising and AUM momentum — Ares said its assets under management topped $600 billion and secured $600 million for Asia funds in the December quarter, supporting fee income growth and long‑term revenue visibility. Ares Management misses Q4 earnings expectations, shares edge down
• Positive Sentiment: Record direct‑lending origination — Ares reported record U.S. direct lending commitments (~$19.4B in Q4; $55.0B for the year), highlighting growth in private credit, a higher‑margin business for the firm. Ares Announces Record Fourth Quarter and Full-Year 2025 U.S. Direct Lending Origination Activity
• Neutral Sentiment: Management flags thematic opportunities — Ares called out potential investment opportunities from AI disruption, which could support future deal activity but is longer‑term and execution dependent. Ares sees investment opportunities in AI disruption
• Neutral Sentiment: Credit product yields and fixed‑income positioning — Coverage notes Ares’ bonds and credit products are offering attractive yields (7%+ in some cases), which may support investor interest but also reflects broader rate and credit conditions. ARES Q4 earnings advance as fundraising, investing fuel AUM climb
• Negative Sentiment: Q4 EPS miss and higher expenses pressured the stock — Ares reported $1.45 EPS vs. consensus $1.71, with rising operating expenses and lower GAAP net income contributing to the miss; the market reacted negatively despite revenue beating estimates. Ares Management misses Q4 earnings expectations, shares edge down
• Negative Sentiment: Stock markets fretting about 2026 outlook — Commentaries note investors are worried about profit progression and expense trajectory into 2026, which increases near‑term valuation risk for a stock trading above long‑term averages. Ares and Blue Owl Say They Had a Good 2025. The Stock Market Is Worried About 2026.

Analysts Set New Price Targets

ARES has been the subject of a number of recent research reports. UBS Group lowered their price objective on Ares Management from $201.00 to $198.00 and set a “neutral” rating for the company in a research note on Tuesday, January 13th. Morgan Stanley set a $178.00 price target on shares of Ares Management in a research note on Tuesday, January 27th. Oppenheimer reissued an “outperform” rating and set a $224.00 price objective on shares of Ares Management in a research report on Tuesday, January 20th. Citigroup reaffirmed a “market outperform” rating on shares of Ares Management in a report on Tuesday, October 21st. Finally, Wolfe Research set a $210.00 price target on shares of Ares Management and gave the company an “outperform” rating in a report on Wednesday, January 7th. Twelve equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $194.79.

Insider Activity at Ares Management

In other news, CEO Michael J. Arougheti sold 56,257 shares of the business’s stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $157.26, for a total transaction of $8,846,975.82. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders have sold 590,000 shares of company stock valued at $90,653,808 in the last three months. Insiders own 36.86% of the company’s stock.

Institutional Investors Weigh In On Ares Management

A number of large investors have recently added to or reduced their stakes in ARES. Creative Planning boosted its stake in shares of Ares Management by 29.6% in the 2nd quarter. Creative Planning now owns 34,036 shares of the asset manager’s stock worth $5,895,000 after buying an additional 7,776 shares during the last quarter. Principal Financial Group Inc. boosted its position in Ares Management by 2.8% in the third quarter. Principal Financial Group Inc. now owns 3,534,773 shares of the asset manager’s stock worth $565,180,000 after purchasing an additional 94,825 shares during the last quarter. Wealth Alliance LLC grew its stake in shares of Ares Management by 30.6% during the 2nd quarter. Wealth Alliance LLC now owns 4,388 shares of the asset manager’s stock valued at $760,000 after purchasing an additional 1,027 shares during the period. Winslow Capital Management LLC purchased a new stake in shares of Ares Management during the 2nd quarter valued at about $161,774,000. Finally, Quilter Plc lifted its stake in shares of Ares Management by 3.9% in the 3rd quarter. Quilter Plc now owns 666,703 shares of the asset manager’s stock worth $106,599,000 after purchasing an additional 24,964 shares during the period. Institutional investors own 50.03% of the company’s stock.

Ares Management Stock Down 11.3%

The company’s 50 day moving average price is $163.50 and its two-hundred day moving average price is $165.65. The company has a current ratio of 0.22, a quick ratio of 0.22 and a debt-to-equity ratio of 0.62. The stock has a market cap of $39.78 billion, a P/E ratio of 52.23, a PEG ratio of 0.79 and a beta of 1.52.

Ares Management Company Profile

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.