According to Zacks, “Ares Management, L.P. is a global alternative asset manager. It manages four investment groups that invest in the tradable credit, direct lending, and private equity and real estate markets. The company’s Tradable Credit Group segment manages various types of investment funds, such as commingled and separately managed accounts. Its Direct Lending Group segment provides financing solutions to small-to-medium sized companies. The company’s Private Equity Group segment focuses on majority or shared-control investments primarily in under-capitalized companies. Its Real Estate Group segment invests in new developments and the repositioning of assets; and originates and invests in a range of self-originated financing opportunities for middle-market owners and operators of commercial real estate. Ares Management, L.P. is headquartered in Los Angeles. “
Other research analysts have also issued research reports about the company. Barclays began coverage on Ares Management in a research report on Monday, August 5th. They issued an overweight rating and a $33.00 target price for the company. UBS Group boosted their price objective on Ares Management from $28.00 to $32.00 and gave the stock a buy rating in a research note on Thursday, August 1st. ValuEngine downgraded Ares Management from a buy rating to a hold rating in a research note on Wednesday, October 2nd. Morgan Stanley boosted their price objective on Ares Management from $26.00 to $28.00 and gave the stock an equal weight rating in a research note on Friday, August 2nd. Finally, BMO Capital Markets assumed coverage on Ares Management in a research note on Monday. They issued a market perform rating on the stock. One analyst has rated the stock with a sell rating, three have assigned a hold rating and six have assigned a buy rating to the company’s stock. Ares Management presently has an average rating of Buy and a consensus price target of $30.50.
Ares Management (NYSE:ARES) last released its quarterly earnings results on Wednesday, July 31st. The asset manager reported $0.35 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.37 by ($0.02). The company had revenue of $384.80 million for the quarter, compared to analysts’ expectations of $300.41 million. Ares Management had a return on equity of 22.54% and a net margin of 7.77%. Ares Management’s revenue for the quarter was up 88.4% compared to the same quarter last year. During the same quarter last year, the company earned $0.34 EPS. As a group, equities analysts predict that Ares Management will post 1.51 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which was paid on Monday, September 30th. Stockholders of record on Monday, September 16th were issued a dividend of $0.32 per share. The ex-dividend date was Friday, September 13th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 4.88%. Ares Management’s dividend payout ratio is 90.14%.
In other news, CEO Michael J. Arougheti sold 127,400 shares of Ares Management stock in a transaction on Monday, July 15th. The stock was sold at an average price of $28.30, for a total transaction of $3,605,420.00. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Ares Management Llc sold 3,500,000 shares of Ares Management stock in a transaction on Thursday, August 15th. The shares were sold at an average price of $0.11, for a total value of $385,000.00. Following the transaction, the director now owns 86,857 shares in the company, valued at approximately $9,554.27. The disclosure for this sale can be found here. Insiders have sold 5,058,262 shares of company stock worth $4,133,506 in the last quarter. 151.62% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of ARES. Bank of New York Mellon Corp boosted its stake in shares of Ares Management by 41.9% during the 2nd quarter. Bank of New York Mellon Corp now owns 493,541 shares of the asset manager’s stock worth $12,916,000 after acquiring an additional 145,797 shares in the last quarter. Oppenheimer & Co. Inc. raised its holdings in shares of Ares Management by 4.9% in the 2nd quarter. Oppenheimer & Co. Inc. now owns 18,696 shares of the asset manager’s stock worth $489,000 after acquiring an additional 865 shares during the last quarter. BNP Paribas Arbitrage SA acquired a new stake in shares of Ares Management in the 2nd quarter worth about $51,000. Waddell & Reed Financial Inc. raised its holdings in shares of Ares Management by 11.5% in the 2nd quarter. Waddell & Reed Financial Inc. now owns 760,036 shares of the asset manager’s stock worth $19,890,000 after acquiring an additional 78,367 shares during the last quarter. Finally, Laurion Capital Management LP raised its holdings in shares of Ares Management by 66.7% in the 2nd quarter. Laurion Capital Management LP now owns 65,365 shares of the asset manager’s stock worth $1,710,000 after acquiring an additional 26,161 shares during the last quarter. Hedge funds and other institutional investors own 60.13% 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.
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