Ares Management (NYSE:ARES) Stock Price Up 5.4% - Still a Buy?

Key Points

• Ares shares spiked about 5.4% intraday to roughly $101.66 on Friday with below-average volume, but the stock remains well below its 50‑ and 200‑day moving averages (~$140.37 and $154.48).
• Wall Street consensus is a Moderate Buy with an average target of $182.67, although several firms have trimmed price targets (e.g., Barclays to $190, RBC to $173, UBS to $148).
• The company missed quarterly EPS ($1.45 vs. $1.71) but beat revenue and raised its quarterly dividend sharply to $1.35 (annualized $5.40, yield ~5.3%) despite a very high payout ratio of 265%; directors have recently purchased shares and insiders own 36.86% of the stock.

Ares Management Corporation (NYSE:ARES - Get Free Report) shot up 5.4% during mid-day trading on Friday . The stock traded as high as $102.81 and last traded at $101.6640. 2,825,327 shares traded hands during mid-day trading, a decline of 23% from the average session volume of 3,687,216 shares. The stock had previously closed at $96.50.

Wall Street Analysts Forecast Growth

ARES has been the topic of several research reports. Barclays lowered their price target on Ares Management from $222.00 to $190.00 and set an "overweight" rating on the stock in a research note on Friday, February 6th. Wolfe Research set a $210.00 target price on Ares Management and gave the stock an "outperform" rating in a research report on Wednesday, January 7th. Wall Street Zen downgraded shares of Ares Management from a "hold" rating to a "sell" rating in a research note on Saturday, February 28th. Royal Bank Of Canada dropped their price objective on shares of Ares Management from $180.00 to $173.00 and set an "outperform" rating for the company in a research note on Tuesday, February 24th. Finally, UBS Group set a $148.00 price objective on shares of Ares Management in a report on Friday, February 20th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $182.67.

Ares Management Trading Up 5.2%

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 company has a market cap of $33.45 billion, a P/E ratio of 60.13, a P/E/G ratio of 0.76 and a beta of 1.55. The business has a 50-day moving average price of $140.37 and a two-hundred day moving average price of $154.48.

Ares Management (NYSE:ARES - Get Free Report) last announced its quarterly earnings data 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 firm had revenue of $1.50 billion during the quarter, compared to analyst estimates of $1.38 billion. During the same quarter in the previous year, the business earned $0.55 earnings per share. On average, analysts predict that Ares Management Corporation will post 5.28 EPS for the current year.

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 paid a $1.35 dividend. This is an increase from Ares Management's previous quarterly dividend of $0.84. 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 5.3%. Ares Management's dividend payout ratio (DPR) is currently 265.09%.

Insider Transactions at Ares Management

In other news, Director Judy D. Olian purchased 480 shares of the business's stock in a transaction that occurred on Friday, February 20th. The shares were acquired at an average cost of $124.43 per share, for a total transaction of $59,726.40. Following the transaction, the director directly owned 29,734 shares of the company's stock, valued at approximately $3,699,801.62. The trade was a 1.64% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this link. Also, Director Ashish Bhutani bought 10,000 shares of the stock in a transaction on Friday, February 6th. The stock was purchased at an average cost of $126.61 per share, with a total value of $1,266,100.00. Following the purchase, the director directly owned 34,071 shares of the company's stock, valued at approximately $4,313,729.31. This represents a 41.54% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 36.86% of the company's stock.

Institutional Trading of Ares Management

Several hedge funds have recently added to or reduced their stakes in ARES. Creative Planning raised its holdings in shares of Ares Management by 29.6% during the second quarter. Creative Planning now owns 34,036 shares of the asset manager's stock worth $5,895,000 after acquiring an additional 7,776 shares during the period. Vulcan Value Partners LLC lifted its holdings in shares of Ares Management by 10.6% in the third quarter. Vulcan Value Partners LLC now owns 1,350,249 shares of the asset manager's stock valued at $215,785,000 after purchasing an additional 129,368 shares in the last quarter. CI Investments Inc. grew its holdings in shares of Ares Management by 35,425.5% during the third quarter. CI Investments Inc. now owns 221,679 shares of the asset manager's stock worth $35,444,000 after buying an additional 221,055 shares in the last quarter. Principal Financial Group Inc. raised its position in Ares Management by 2.8% in the 3rd quarter. Principal Financial Group Inc. now owns 3,534,773 shares of the asset manager's stock valued at $565,180,000 after buying an additional 94,825 shares during the last quarter. Finally, Wealth Alliance LLC boosted its holdings in Ares Management by 30.6% during the second quarter. Wealth Alliance LLC now owns 4,388 shares of the asset manager's stock worth $760,000 after purchasing an additional 1,027 shares during the last quarter. 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.

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