Ares Management Corporation $ARES Shares Sold by Varma Mutual Pension Insurance Co

Key Points

• Varma Mutual Pension Insurance Co cut its stake in Ares Management by 89.2% in Q4, selling 59,700 shares and leaving the fund with 7,200 shares worth about $1.16 million.
• Ares reported quarterly EPS of $1.24, missing estimates by $0.08, while revenue of $1.36 billion topped expectations.
• The company declared a $1.35 quarterly dividend (annualized $5.40, ~4.4% yield) despite a 251% payout ratio, and analysts hold a mixed view with an average rating of "Moderate Buy" and an average price target of $166.06.

Varma Mutual Pension Insurance Co cut its position in shares of Ares Management Corporation (NYSE:ARES - Free Report) by 89.2% in the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund owned 7,200 shares of the asset manager's stock after selling 59,700 shares during the quarter. Varma Mutual Pension Insurance Co's holdings in Ares Management were worth $1,164,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also recently bought and sold shares of ARES. Redmont Wealth Advisors LLC acquired a new position in Ares Management during the third quarter worth $40,000. Atlantic Edge Private Wealth Management LLC acquired a new position in Ares Management during the fourth quarter worth $42,000. Washington Trust Advisors Inc. purchased a new position in Ares Management during the 3rd quarter valued at about $50,000. First Horizon Corp purchased a new position in Ares Management during the 3rd quarter valued at about $51,000. Finally, Covestor Ltd increased its holdings in Ares Management by 182.6% during the 3rd quarter. Covestor Ltd now owns 421 shares of the asset manager's stock valued at $67,000 after acquiring an additional 272 shares in the last quarter. 50.03% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on ARES. The Goldman Sachs Group dropped their target price on shares of Ares Management from $165.00 to $131.00 and set a "buy" rating for the company in a report on Tuesday, April 7th. Oppenheimer restated an "outperform" rating and set a $146.00 target price (down from $147.00) on shares of Ares Management in a report on Monday. Raymond James Financial upgraded shares of Ares Management from a "market perform" rating to a "strong-buy" rating and set a $157.00 target price for the company in a report on Monday, February 9th. TD Cowen restated a "buy" rating on shares of Ares Management in a report on Wednesday, January 14th. Finally, BMO Capital Markets dropped their price target on Ares Management from $140.00 to $112.00 and set a "market perform" rating for the company in a research report on Tuesday, March 24th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $166.06.

Ares Management Stock Performance

Shares of NYSE ARES opened at $122.92 on Wednesday. The company has a market cap of $40.50 billion, a PE ratio of 57.17, a price-to-earnings-growth ratio of 1.08 and a beta of 1.50. Ares Management Corporation has a 12 month low of $95.80 and a 12 month high of $195.26. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.22 and a quick ratio of 1.22. The company has a 50-day simple moving average of $110.17 and a 200-day simple moving average of $139.28.

Ares Management (NYSE:ARES - Get Free Report) last issued its quarterly earnings results on Friday, May 1st. The asset manager reported $1.24 EPS for the quarter, missing analysts' consensus estimates of $1.32 by ($0.08). The firm had revenue of $1.36 billion for the quarter, compared to analysts' expectations of $1.28 billion. Ares Management had a return on equity of 22.02% and a net margin of 10.54%.During the same quarter last year, the firm earned $1.09 earnings per share. On average, equities analysts anticipate that Ares Management Corporation will post 6.09 earnings per share for the current year.

Ares Management Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th will be issued a dividend of $1.35 per share. The ex-dividend date is Tuesday, June 16th. This represents a $5.40 dividend on an annualized basis and a dividend yield of 4.4%. Ares Management's payout ratio is 251.16%.

Insider Transactions at Ares Management

In other news, Director Judy D. Olian purchased 480 shares of the stock in a transaction dated 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 acquisition, the director directly owned 29,734 shares in the company, valued at $3,699,801.62. This represents a 1.64% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Ashish Bhutani purchased 10,000 shares of the stock in a transaction dated Friday, February 6th. The shares were purchased at an average price 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 of the company's stock, valued at approximately $4,313,729.31. This represents a 41.54% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 0.52% 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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