Ares Management Corporation $ARES is Peregrine Capital Management LLC's 3rd Largest Position

Key Points

• Peregrine Capital trimmed its Ares stake by 1.5% in Q4 to 594,104 shares (its 3rd largest holding), representing about 2.9% of Peregrine’s portfolio and ~0.18% of Ares worth $96.0M.
• Ares raised its quarterly dividend to $1.35 (annualized $5.40), yielding 4.7%, though the payout ratio is an elevated 319.53%.
• Ares missed Q earnings per share ($1.45 vs. $1.71 expected) but topped revenue estimates, and the stock trades around $115 versus a consensus analyst target of $166.73 (consensus rating: "Moderate Buy").

Peregrine Capital Management LLC lessened its stake in Ares Management Corporation (NYSE:ARES - Free Report) by 1.5% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 594,104 shares of the asset manager's stock after selling 8,933 shares during the period. Ares Management accounts for approximately 2.9% of Peregrine Capital Management LLC's portfolio, making the stock its 3rd largest position. Peregrine Capital Management LLC owned approximately 0.18% of Ares Management worth $96,025,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also made changes to their positions in the company. Exchange Traded Concepts LLC lifted its stake in Ares Management by 100.0% in the third quarter. Exchange Traded Concepts LLC now owns 190 shares of the asset manager's stock valued at $30,000 after buying an additional 95 shares during the last quarter. Redmont Wealth Advisors LLC acquired a new stake in Ares Management during the 3rd quarter worth $40,000. Atlantic Edge Private Wealth Management LLC acquired a new position in Ares Management in the fourth quarter valued at $42,000. Washington Trust Advisors Inc. purchased a new stake in shares of Ares Management in the third quarter valued at about $50,000. Finally, First Horizon Corp purchased a new position in shares of Ares Management during the third quarter worth about $51,000. 50.03% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts have weighed in on ARES shares. Citizens Jmp lowered their target price on Ares Management from $205.00 to $190.00 and set a "market outperform" rating on the stock in a research note on Wednesday. Weiss Ratings reiterated a "hold (c)" rating on shares of Ares Management in a research report on Monday, December 29th. Morgan Stanley dropped their price objective on shares of Ares Management from $178.00 to $163.00 and set an "equal weight" rating on the stock in a research note on Tuesday. Barclays reduced their target price on shares of Ares Management from $138.00 to $127.00 and set an "overweight" rating for the company in a research note on Wednesday, April 8th. Finally, Raymond James Financial upgraded shares of Ares Management from a "market perform" rating to a "strong-buy" rating and set a $157.00 price target on the stock in a research note on Monday, February 9th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $166.73.

Ares Management Price Performance

ARES stock traded down $6.03 during trading on Thursday, reaching $115.02. 201,019 shares of the company were exchanged, compared to its average volume of 3,730,585. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.22 and a current ratio of 1.22. The stock's 50 day moving average price is $112.43 and its 200 day moving average price is $140.92. Ares Management Corporation has a 52-week low of $95.80 and a 52-week high of $195.26. The company has a market cap of $37.89 billion, a P/E ratio of 67.95, a PEG ratio of 1.06 and a beta of 1.52.

Ares Management (NYSE:ARES - Get Free Report) last posted its quarterly earnings results on Thursday, February 5th. The asset manager reported $1.45 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.71 by ($0.26). The company had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.38 billion. Ares Management had a net margin of 9.41% and a return on equity of 19.04%. During the same quarter in the previous year, the business posted $0.55 earnings per share. As a group, analysts predict that Ares Management Corporation will post 6.25 earnings per share for the current fiscal year.

Ares Management Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th were issued a $1.35 dividend. This represents a $5.40 annualized dividend and a yield of 4.7%. This is a positive change from Ares Management's previous quarterly dividend of $0.84. The ex-dividend date of this dividend was Tuesday, March 17th. Ares Management's dividend payout ratio is currently 319.53%.

Insiders Place Their Bets

In other news, Director Ashish Bhutani purchased 10,000 shares of the business's stock in a transaction dated Friday, February 6th. The stock was acquired at an average price 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 $4,313,729.31. This represents a 41.54% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Judy D. Olian acquired 480 shares of the stock in a transaction that occurred on Friday, February 20th. The stock was acquired at an average cost of $124.43 per share, for a total transaction of $59,726.40. Following the completion of the purchase, the director owned 29,734 shares in the company, valued at $3,699,801.62. The trade was a 1.64% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 36.86% 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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