Ares Management (NYSE:ARES) Reaches New 1-Year High Following Earnings Beat

Ares Management Co. (NYSE:ARESGet Free Report) shares reached a new 52-week high during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $139.48 and last traded at $136.54, with a volume of 96528 shares traded. The stock had previously closed at $128.85.

The asset manager reported $1.21 EPS for the quarter, beating the consensus estimate of $1.10 by $0.11. Ares Management had a return on equity of 17.60% and a net margin of 11.89%. The firm had revenue of $1.05 billion for the quarter, compared to analysts’ expectations of $862.71 million. During the same period last year, the firm earned $1.21 EPS.

Ares Management Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, March 29th. Shareholders of record on Friday, March 15th will be paid a dividend of $0.93 per share. This is a positive change from Ares Management’s previous quarterly dividend of $0.77. This represents a $3.72 dividend on an annualized basis and a yield of 2.72%. The ex-dividend date of this dividend is Thursday, March 14th. Ares Management’s dividend payout ratio (DPR) is presently 143.26%.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on ARES. Jefferies Financial Group lowered Ares Management from a “buy” rating to a “hold” rating and set a $122.00 price target for the company. in a research note on Tuesday, January 9th. Barclays decreased their price target on Ares Management from $130.00 to $118.00 and set an “overweight” rating for the company in a research note on Wednesday, November 1st. JPMorgan Chase & Co. increased their price target on Ares Management from $119.00 to $141.00 and gave the company an “overweight” rating in a research note on Friday. Morgan Stanley raised their price objective on Ares Management from $109.00 to $118.00 and gave the stock an “equal weight” rating in a research note on Wednesday, January 24th. Finally, Royal Bank of Canada raised their price objective on Ares Management from $120.00 to $135.00 and gave the stock an “outperform” rating in a research note on Tuesday. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $117.17.

Read Our Latest Research Report on ARES

Insider Buying and Selling

In related news, CEO Michael J. Arougheti sold 150,000 shares of the stock in a transaction on Wednesday, November 15th. The stock was sold at an average price of $105.17, for a total transaction of $15,775,500.00. Following the completion of the sale, the chief executive officer now directly owns 825,000 shares in the company, valued at $86,765,250. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. 47.34% of the stock is owned by corporate insiders.

Institutional Trading of Ares Management

Several hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its holdings in shares of Ares Management by 1.8% during the third quarter. Vanguard Group Inc. now owns 15,761,015 shares of the asset manager’s stock worth $1,621,336,000 after acquiring an additional 273,645 shares in the last quarter. BlackRock Inc. raised its holdings in Ares Management by 7.3% during the second quarter. BlackRock Inc. now owns 11,389,511 shares of the asset manager’s stock valued at $1,097,379,000 after buying an additional 771,052 shares in the last quarter. FMR LLC raised its holdings in Ares Management by 27.4% during the third quarter. FMR LLC now owns 5,836,590 shares of the asset manager’s stock valued at $600,410,000 after buying an additional 1,255,866 shares in the last quarter. Franklin Resources Inc. raised its holdings in Ares Management by 1.9% during the fourth quarter. Franklin Resources Inc. now owns 3,872,559 shares of the asset manager’s stock valued at $460,525,000 after buying an additional 71,819 shares in the last quarter. Finally, Bank of New York Mellon Corp raised its holdings in Ares Management by 26.9% during the second quarter. Bank of New York Mellon Corp now owns 3,714,982 shares of the asset manager’s stock valued at $357,938,000 after buying an additional 786,862 shares in the last quarter. 50.03% of the stock is currently owned by hedge funds and other institutional investors.

Ares Management Trading Up 0.9 %

The company has a fifty day simple moving average of $118.06 and a two-hundred day simple moving average of $108.88. The company has a debt-to-equity ratio of 0.60, a current ratio of 0.98 and a quick ratio of 0.98. The company has a market capitalization of $42.01 billion, a P/E ratio of 63.61, a price-to-earnings-growth ratio of 1.15 and a beta of 1.18.

Ares Management Company Profile

(Get Free Report)

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.

Featured Articles

Receive News & Ratings for Ares Management Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ares Management and related companies with MarketBeat.com's FREE daily email newsletter.