Ares Management Corporation $ARES Stake Cut by Parnassus Investments LLC

Key Points

• Parnassus Investments trimmed its Ares Management stake by 1.8% in the fourth quarter, though it still held 402,561 shares worth about $65.1 million at quarter-end.
• Institutional ownership remains significant, with Vanguard, MFS, Geode and other large investors increasing their positions; about 50.03% of Ares shares are held by institutional investors overall.
• Ares posted mixed recent results: quarterly EPS of $1.24 missed estimates, but revenue came in above expectations, and the company also declared a quarterly dividend of $1.35 per share for a 4.1% yield.

Parnassus Investments LLC cut its position in shares of Ares Management Corporation (NYSE:ARES - Free Report) by 1.8% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 402,561 shares of the asset manager's stock after selling 7,539 shares during the quarter. Parnassus Investments LLC owned 0.12% of Ares Management worth $65,066,000 at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in Ares Management by 20.2% during the fourth quarter. Vanguard Group Inc. now owns 26,050,425 shares of the asset manager's stock worth $4,210,530,000 after purchasing an additional 4,373,955 shares during the last quarter. Massachusetts Financial Services Co. MA increased its position in Ares Management by 26.3% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 5,705,599 shares of the asset manager's stock worth $922,196,000 after buying an additional 1,187,174 shares during the period. Geode Capital Management LLC increased its position in Ares Management by 55.7% in the fourth quarter. Geode Capital Management LLC now owns 5,489,004 shares of the asset manager's stock worth $883,716,000 after buying an additional 1,963,460 shares during the period. Capital International Investors increased its position in Ares Management by 0.3% in the fourth quarter. Capital International Investors now owns 4,257,710 shares of the asset manager's stock worth $688,176,000 after buying an additional 14,516 shares during the period. Finally, Principal Financial Group Inc. increased its position in Ares Management by 8.6% in the fourth quarter. Principal Financial Group Inc. now owns 3,839,693 shares of the asset manager's stock worth $620,616,000 after buying an additional 304,920 shares during the period. 50.03% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. Wall Street Zen raised Ares Management from a "sell" rating to a "hold" rating in a research report on Saturday, June 6th. BMO Capital Markets dropped their target price on Ares Management from $140.00 to $112.00 and set a "market perform" rating on the stock in a research report on Tuesday, March 24th. The Goldman Sachs Group dropped their target price on Ares Management from $165.00 to $131.00 and set a "buy" rating on the stock in a research report on Tuesday, April 7th. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Ares Management in a research report on Wednesday, April 29th. Finally, Citizens Jmp dropped their target price on Ares Management from $205.00 to $190.00 and set a "market outperform" rating on the stock in a research report on Wednesday, April 22nd. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $162.56.

Ares Management Price Performance

Shares of ARES opened at $132.71 on Friday. The firm has a market capitalization of $43.77 billion, a price-to-earnings ratio of 61.72, a price-to-earnings-growth ratio of 1.12 and a beta of 1.51. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.23 and a current ratio of 0.23. Ares Management Corporation has a one year low of $95.80 and a one year high of $195.26. The stock's fifty day moving average is $119.24 and its 200-day moving average is $134.90.

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 business had revenue of $1.40 billion for the quarter, compared to analyst estimates of $1.28 billion. Ares Management had a net margin of 10.54% and a return on equity of 22.14%. During the same period last year, the business posted $1.09 earnings per share. Equities analysts anticipate that Ares Management Corporation will post 6.06 EPS for the current year.

Ares Management Announces Dividend

The firm 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. This represents a $5.40 dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date of this dividend is Tuesday, June 16th. Ares Management's dividend payout ratio (DPR) is 251.16%.

Key Stories Impacting Ares Management

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

• Positive Sentiment: Ares reportedly raised $8.5 billion for its newest specialty credit fund, signaling strong institutional demand and supporting fee-related earnings growth. Ares Management raises $8.5 billion for new fund, FT reports
• Positive Sentiment: The company also raised $12.7 billion for its Pathfinder closed-end strategy focused on asset-based finance, reinforcing momentum in Ares’ fundraising platform and alternative credit business. Ares Raises $12.7 Billion to Invest in Asset-Based Finance Through the Pathfinder Closed-End Strategy
• Positive Sentiment: Reuters said most withdrawal requests from an Ares private credit fund came from outside the U.S., which may help ease concerns that redemptions reflect broad domestic stress. Most withdrawals from Ares private credit fund came from outside US, CEO says
• Neutral Sentiment: Shareholders re-elected the board and approved the auditor at the annual meeting, a routine corporate update with little direct impact on fundamentals. Ares Management Shareholders Reelect Board, Confirm Auditor
• Neutral Sentiment: Ares Dynamic Credit Allocation Fund declared a monthly distribution, which is relevant to that fund’s income investors but not a major driver for ARES shares. ARES DYNAMIC CREDIT ALLOCATION FUND DECLARES A MONTHLY DISTRIBUTION OF $0.1125 PER SHARE
• Negative Sentiment: Some commentary noted that retail-fund investor psychology remains a challenge, which could temper enthusiasm around parts of the broader alternatives market. Ares’ Jacobson says retail funds have investor psychology issue

Ares Management Profile

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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