Ares Management (NYSE:ARES) Hits New 12-Month High – Here’s Why

Ares Management Co. (NYSE:ARES) shares reached a new 52-week high during trading on Wednesday . The stock traded as high as $200.49 and last traded at $195.70, with a volume of 1964564 shares trading hands. The stock had previously closed at $196.52.

Wall Street Analyst Weigh In

ARES has been the subject of several research analyst reports. Royal Bank of Canada upped their price target on shares of Ares Management from $170.00 to $185.00 and gave the stock an “outperform” rating in a research report on Monday, November 4th. Wells Fargo & Company raised their target price on Ares Management from $207.00 to $215.00 and gave the company an “overweight” rating in a report on Thursday. UBS Group lifted their price objective on shares of Ares Management from $158.00 to $195.00 and gave the company a “buy” rating in a research note on Tuesday, October 22nd. TD Cowen boosted their price target on Ares Management from $184.00 to $187.00 and gave the stock a “buy” rating in a research note on Monday, November 4th. Finally, Morgan Stanley upped their price target on shares of Ares Management from $136.00 to $162.00 and gave the company an “equal weight” rating in a report on Thursday, October 10th. One analyst has rated the stock with a sell rating, five have given a hold rating and eight have assigned a buy rating to the stock. According to data from MarketBeat, Ares Management has an average rating of “Moderate Buy” and an average target price of $176.17.

Ares Management Stock Performance

The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.05 and a current ratio of 1.05. The stock has a 50 day moving average of $183.08 and a 200 day moving average of $165.17. The stock has a market capitalization of $59.90 billion, a P/E ratio of 88.17, a P/E/G ratio of 1.50 and a beta of 1.18.

Ares Management (NYSE:ARES) last issued its quarterly earnings data on Wednesday, February 5th. The asset manager reported $1.23 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.35 by ($0.12). Ares Management had a return on equity of 19.89% and a net margin of 12.51%. Equities analysts predict that Ares Management Co. will post 4.04 EPS for the current year.

Ares Management Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 31st. Investors of record on Monday, March 17th will be paid a dividend of $1.12 per share. This represents a $4.48 dividend on an annualized basis and a dividend yield of 2.34%. The ex-dividend date is Monday, March 17th. This is a positive change from Ares Management’s previous quarterly dividend of $0.93. Ares Management’s dividend payout ratio (DPR) is currently 183.25%.

Insider Transactions at Ares Management

In related news, insider Ryan Berry sold 14,357 shares of the firm’s stock in a transaction that occurred on Wednesday, December 11th. The shares were sold at an average price of $180.16, for a total value of $2,586,557.12. Following the completion of the transaction, the insider now owns 233,214 shares of the company’s stock, valued at approximately $42,015,834.24. This trade represents a 5.80 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider R. Kipp Deveer sold 115,838 shares of Ares Management stock in a transaction on Friday, December 6th. The shares were sold at an average price of $177.83, for a total value of $20,599,471.54. Following the transaction, the insider now owns 1,259,162 shares in the company, valued at $223,916,778.46. This represents a 8.42 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 555,838 shares of company stock valued at $96,785,773. Corporate insiders own 1.20% of the company’s stock.

Hedge Funds Weigh In On Ares Management

Large investors have recently made changes to their positions in the business. Victory Capital Management Inc. grew its stake in Ares Management by 6.5% in the third quarter. Victory Capital Management Inc. now owns 65,417 shares of the asset manager’s stock valued at $10,195,000 after purchasing an additional 4,000 shares in the last quarter. Charles Schwab Investment Management Inc. increased its stake in shares of Ares Management by 5.6% in the third quarter. Charles Schwab Investment Management Inc. now owns 682,985 shares of the asset manager’s stock worth $106,436,000 after purchasing an additional 36,476 shares during the period. Toronto Dominion Bank lifted its holdings in shares of Ares Management by 31.2% during the third quarter. Toronto Dominion Bank now owns 22,750 shares of the asset manager’s stock worth $3,545,000 after buying an additional 5,404 shares during the last quarter. JPMorgan Chase & Co. raised its stake in Ares Management by 9.0% during the 3rd quarter. JPMorgan Chase & Co. now owns 8,244,179 shares of the asset manager’s stock valued at $1,284,773,000 after purchasing an additional 679,462 shares during the last quarter. Finally, Caldwell Investment Management Ltd. raised its position in shares of Ares Management by 134.1% during the fourth quarter. Caldwell Investment Management Ltd. now owns 10,300 shares of the asset manager’s stock valued at $1,842,000 after buying an additional 5,900 shares during the last quarter. Institutional investors and hedge funds own 50.03% of the company’s stock.

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.