Ares Management Corporation $ARES Shares Newly Bought by ICG Advisors LLC

Key Points

• ICG Advisors LLC purchased 846,967 Ares Management shares in the third quarter, valued at approximately $98.4 million. The position represents 71.8% of ICG’s portfolio and about 0.26% of Ares’ outstanding shares.
• Ares is expanding its infrastructure investments, agreeing to acquire Infinity Transportation from KKR for approximately $2.9 billion and buying a stake in Statera’s 1.9-gigawatt UK energy portfolio.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and $154.25 target price. Ares recently exceeded quarterly earnings and revenue estimates, while its stock was trading at $112.87 and offered a 4.8% dividend yield.

ICG Advisors LLC purchased a new stake in Ares Management Corporation (NYSE:ARES - Free Report) in the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The fund purchased 846,967 shares of the asset manager's stock, valued at approximately $98,392,000. Ares Management makes up 71.8% of ICG Advisors LLC's holdings, making the stock its biggest holding. ICG Advisors LLC owned about 0.26% of Ares Management as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in ARES. Principal Financial Group Inc. lifted its stake in Ares Management by 4.4% in the first quarter. Principal Financial Group Inc. now owns 4,009,291 shares of the asset manager's stock valued at $437,417,000 after acquiring an additional 169,598 shares during the last quarter. Vulcan Value Partners LLC increased its stake in shares of Ares Management by 12.5% during the 2nd quarter. Vulcan Value Partners LLC now owns 1,902,580 shares of the asset manager's stock worth $211,776,000 after purchasing an additional 211,404 shares during the last quarter. Janus Henderson Group PLC raised its holdings in shares of Ares Management by 43.8% during the 1st quarter. Janus Henderson Group PLC now owns 1,653,078 shares of the asset manager's stock valued at $180,343,000 after purchasing an additional 503,688 shares in the last quarter. Curated Wealth Partners LLC lifted its stake in shares of Ares Management by 968.3% in the 3rd quarter. Curated Wealth Partners LLC now owns 1,450,854 shares of the asset manager's stock valued at $168,546,000 after purchasing an additional 1,315,043 shares during the last quarter. Finally, Hamlin Capital Management LLC lifted its stake in shares of Ares Management by 6.6% in the 3rd quarter. Hamlin Capital Management LLC now owns 1,022,899 shares of the asset manager's stock valued at $118,830,000 after purchasing an additional 63,265 shares during the last quarter. Institutional investors own 50.03% of the company's stock.

Ares Management News Roundup

Here are the key news stories impacting Ares Management this week:

• Positive Sentiment: Ares agreed to acquire Infinity Transportation, a North American railcar and intermodal-equipment lessor, from KKR for an enterprise value of approximately $2.9 billion. The deal expands Ares’ exposure to transportation infrastructure and recurring leasing cash flows through Ares Infrastructure Equity and Ares Insurance Solutions funds. The transaction requires customary closing conditions and regulatory approvals. KKR to Sell Infinity Transportation to Ares for $2.9 Billion
• Positive Sentiment: Ares acquired a stake in Statera’s UK energy portfolio, which totals approximately 1.9 gigawatts. The investment strengthens Ares’ position in power and energy infrastructure and could benefit from long-term demand for electricity and energy-transition assets. Ares Acquires Stake in Statera’s 1.9 GW UK Energy Portfolio
• Positive Sentiment: Piper Sandler lowered its Ares price target from $150 to $143 but maintained an Overweight rating. The revised target still implies substantial upside from the referenced share price, indicating continued analyst confidence despite more cautious valuation assumptions.
• Neutral Sentiment: Ares has reportedly hired bankers in connection with Rio Tinto’s potential $7 billion asset auction. The move could create another sizable investment opportunity, but the report is preliminary and does not confirm that Ares will win any transaction. Global credit manager Ares hires bankers for Rio Tinto’s $7b auction

Wall Street Analyst Weigh In

ARES has been the topic of several recent research reports. Oppenheimer raised their target price on Ares Management from $151.00 to $162.00 and gave the company an "outperform" rating in a report on Thursday, August 27th. JPMorgan Chase & Co. raised their price objective on Ares Management from $143.00 to $153.00 and gave the company an "overweight" rating in a research note on Monday, August 3rd. Wells Fargo & Company started coverage on Ares Management in a report on Friday, October 2nd. They issued an "overweight" rating and a $136.00 target price for the company. Royal Bank Of Canada increased their price target on Ares Management from $162.00 to $168.00 and gave the company an "outperform" rating in a report on Monday, August 3rd. Finally, Barclays decreased their price objective on shares of Ares Management from $140.00 to $139.00 and set an "overweight" rating for the company in a report on Thursday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $154.25.

Ares Management Stock Performance

ARES opened at $112.87 on Tuesday. The company has a quick ratio of 0.26, a current ratio of 0.26 and a debt-to-equity ratio of 1.00. The stock's 50 day moving average price is $129.61 and its two-hundred day moving average price is $124.51. The firm has a market capitalization of $37.28 billion, a P/E ratio of 21.72, a price-to-earnings-growth ratio of 1.01 and a beta of 1.53. Ares Management Corporation has a 12-month low of $95.80 and a 12-month high of $181.19.

Ares Management (NYSE:ARES - Get Free Report) last issued its quarterly earnings results on Friday, July 31st. The asset manager reported $1.29 EPS for the quarter, topping analysts' consensus estimates of $1.28 by $0.01. Ares Management had a return on equity of 25.42% and a net margin of 10.63%. The company had revenue of $1.43 billion during the quarter, compared to analyst estimates of $1.27 billion. During the same period in the previous year, the company earned $1.03 earnings per share. The company's quarterly revenue was up 5.8% compared to the same quarter last year. On average, equities analysts forecast that Ares Management Corporation will post 5.80 earnings per share for the current year.

Ares Management Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th were issued a $1.35 dividend. The ex-dividend date of this dividend was Wednesday, September 16th. This represents a $5.40 dividend on an annualized basis and a yield of 4.8%. Ares Management's dividend payout ratio is 247.71%.

Ares Management Company Profile

Ares Management Corporation NYSE: ARES is a global alternative investment manager that provides investment solutions across credit, private equity, real assets and secondaries. The company manages capital on behalf of institutional investors, pension funds, insurance companies, sovereign wealth funds, family offices and individual investors.

Its investment activities include direct lending and other credit strategies, control and minority investments in private companies, real estate and infrastructure investments, and secondary-market transactions involving private assets and fund interests.

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