Ares Management Corporation $ARES Stake Lowered by TD Asset Management Inc

Key Points

• TD Asset Management Inc has reduced its stake in Ares Management Corporation by 3.5%, now owning approximately $200.68 million worth of shares.
• Chairman Antony P. Ressler and CEO Michael J. Arougheti both sold significant portions of their shares, decreasing their positions by 12.11% and 30.46%, respectively.
• Ares Management has announced a dividend of $1.12 per share, which represents an annual yield of 3.1% despite a high payout ratio of 258.96%.

TD Asset Management Inc reduced its stake in shares of Ares Management Corporation (NYSE:ARES - Free Report) by 3.5% during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 1,158,635 shares of the asset manager's stock after selling 42,357 shares during the period. TD Asset Management Inc owned 0.35% of Ares Management worth $200,676,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of ARES. Redmont Wealth Advisors LLC purchased a new position in shares of Ares Management during the 1st quarter valued at $28,000. Financial Network Wealth Advisors LLC purchased a new position in shares of Ares Management during the 1st quarter valued at $31,000. Rakuten Securities Inc. grew its holdings in shares of Ares Management by 3,262.5% during the 1st quarter. Rakuten Securities Inc. now owns 269 shares of the asset manager's stock valued at $39,000 after acquiring an additional 261 shares in the last quarter. Banque Transatlantique SA purchased a new position in shares of Ares Management during the 1st quarter valued at $39,000. Finally, Ameritas Advisory Services LLC purchased a new position in shares of Ares Management during the 2nd quarter valued at $43,000. 50.03% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Ares Management news, Chairman Antony P. Ressler sold 196,197 shares of the business's stock in a transaction on Tuesday, August 26th. The shares were sold at an average price of $178.79, for a total transaction of $35,078,061.63. Following the completion of the transaction, the chairman owned 1,424,538 shares of the company's stock, valued at $254,693,149.02. The trade was a 12.11% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Michael J. Arougheti sold 136,516 shares of the business's stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $182.74, for a total transaction of $24,946,933.84. Following the transaction, the chief executive officer owned 311,728 shares in the company, valued at approximately $56,965,174.72. The trade was a 30.46% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 2,590,000 shares of company stock valued at $464,430,639. Company insiders own 0.52% of the company's stock.

Ares Management Stock Up 2.0%

Ares Management stock opened at $143.69 on Tuesday. The firm has a market cap of $46.94 billion, a price-to-earnings ratio of 83.06, a P/E/G ratio of 1.10 and a beta of 1.43. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.08 and a quick ratio of 1.08. Ares Management Corporation has a fifty-two week low of $110.63 and a fifty-two week high of $200.49. The firm has a fifty day moving average price of $174.36 and a two-hundred day moving average price of $167.32.

Ares Management (NYSE:ARES - Get Free Report) last released its earnings results on Friday, August 1st. The asset manager reported $1.03 earnings per share for the quarter, missing analysts' consensus estimates of $1.15 by ($0.12). The firm had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.02 billion. Ares Management had a return on equity of 15.81% and a net margin of 9.47%.During the same period in the prior year, the firm earned $0.99 EPS. As a group, analysts forecast that Ares Management Corporation will post 5.28 earnings per share for the current year.

Ares Management Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Shareholders of record on Tuesday, September 16th were given a dividend of $1.12 per share. The ex-dividend date of this dividend was Tuesday, September 16th. This represents a $4.48 dividend on an annualized basis and a yield of 3.1%. Ares Management's payout ratio is currently 258.96%.

Wall Street Analyst Weigh In

ARES has been the topic of several research analyst reports. Citigroup restated an "outperform" rating on shares of Ares Management in a report on Monday, July 14th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $215.00 price objective on shares of Ares Management in a research note on Monday, September 29th. Cfra Research raised shares of Ares Management to a "moderate buy" rating in a research note on Monday, August 4th. Bank of America lifted their price objective on shares of Ares Management from $196.00 to $197.00 and gave the company a "buy" rating in a research note on Friday, October 3rd. Finally, Wells Fargo & Company lifted their price objective on shares of Ares Management from $189.00 to $202.00 and gave the company an "overweight" rating in a research note on Friday, July 11th. Fourteen equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, Ares Management currently has an average rating of "Moderate Buy" and an average target price of $181.31.

Ares Management Company Profile

Ares Management Corporation operates as an alternative asset manager in the United States, Europe, and Asia. The company's Tradable Credit Group segment manages various types of investment funds, such as commingled and separately managed accounts for institutional investors, and publicly traded vehicles and sub-advised funds for retail investors in the tradable and non-investment grade corporate credit markets.

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