Ares Management Sees Unusually High Options Volume (NYSE:ARES)

Key Points

• Unusually high options activity: Traders bought 9,717 call options on Ares on Tuesday, a 48% rise versus the average daily call volume of 6,546.
• Director buying: Directors Judy D. Olian and Ashish Bhutani disclosed purchases (480 shares at $124.43 and 10,000 shares at $126.61, respectively), boosting their stakes and reflecting insider ownership of 36.86%.
• Big dividend bump with a high payout ratio: Ares raised its quarterly dividend to $1.35 (annualized $5.40) for a 5.3% yield, while the dividend payout ratio sits at an elevated 319.53%.

Ares Management Corporation (NYSE:ARES - Get Free Report) was the target of unusually large options trading on Tuesday. Stock investors purchased 9,717 call options on the company. This is an increase of 48% compared to the average daily volume of 6,546 call options.

Insider Buying and Selling

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

Institutional Investors Weigh In On Ares Management

Large investors have recently added to or reduced their stakes in the stock. Exchange Traded Concepts LLC grew its position in Ares Management by 100.0% during the third quarter. Exchange Traded Concepts LLC now owns 190 shares of the asset manager's stock worth $30,000 after buying an additional 95 shares in the last quarter. Osbon Capital Management LLC acquired a new stake in Ares Management during the fourth quarter worth approximately $32,000. Redmont Wealth Advisors LLC acquired a new stake in Ares Management during the third quarter worth approximately $40,000. Atlantic Edge Private Wealth Management LLC acquired a new stake in Ares Management during the fourth quarter worth approximately $42,000. Finally, Elyxium Wealth LLC acquired a new stake in Ares Management during the fourth quarter worth approximately $42,000. Institutional investors and hedge funds own 50.03% of the company's stock.

Wall Street Analyst Weigh In

ARES has been the topic of a number of recent analyst reports. Wall Street Zen lowered Ares Management from a "hold" rating to a "sell" rating in a research note on Saturday, February 28th. Weiss Ratings restated a "hold (c)" rating on shares of Ares Management in a report on Monday, December 29th. The Goldman Sachs Group dropped their target price on Ares Management from $189.00 to $165.00 and set a "buy" rating on the stock in a report on Friday, February 6th. Barclays dropped their price objective 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. Finally, BMO Capital Markets dropped their price objective on Ares Management from $140.00 to $112.00 and set a "market perform" rating on the stock in a research note on Tuesday, March 24th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $179.73.

Ares Management Stock Performance

Shares of Ares Management stock traded down $0.91 on Tuesday, hitting $101.93. The stock had a trading volume of 619,200 shares, compared to its average volume of 3,751,907. Ares Management has a twelve month low of $95.80 and a twelve month high of $195.26. The business's 50 day moving average is $119.15 and its two-hundred day moving average is $145.27. 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 stock has a market cap of $33.58 billion, a price-to-earnings ratio of 60.31, a price-to-earnings-growth ratio of 0.76 and a beta of 1.52.

Ares Management (NYSE:ARES - Get Free Report) last posted its earnings results on Thursday, February 5th. The asset manager reported $1.45 EPS for the quarter, missing the consensus estimate of $1.71 by ($0.26). Ares Management had a net margin of 9.41% and a return on equity of 19.04%. The firm had revenue of $1.50 billion during the quarter, compared to analyst estimates of $1.38 billion. During the same period in the previous year, the company posted $0.55 EPS. Analysts forecast that Ares Management will post 5.28 EPS for the current year.

Ares Management Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th were given a $1.35 dividend. The ex-dividend date of this dividend was Tuesday, March 17th. This is a positive change from Ares Management's previous quarterly dividend of $0.84. This represents a $5.40 annualized dividend and a dividend yield of 5.3%. Ares Management's dividend payout ratio (DPR) is currently 319.53%.

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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