Ares Management Corporation $ARES Stock: Generate Investment Management Ltd Grows Position

Key Points

• Generate Investment Management more than doubled its Ares Management position in the third quarter, acquiring 134,567 additional shares to hold 259,567 shares valued at approximately $30.2 million. Institutional investors collectively own 50.03% of Ares stock.
• Ares shares fell 2.8% to $112.41 during mid-day trading, well below the 52-week high of $181.19. Despite the decline, analysts maintain a “Moderate Buy” consensus with an average price target of $155.38.
• The company exceeded quarterly earnings expectations, reporting $1.29 in earnings per share and $1.43 billion in revenue, while revenue increased 5.8% year over year. Ares also maintains a quarterly dividend of $1.35 per share, representing a 4.8% yield.

Generate Investment Management Ltd raised its position in Ares Management Corporation (NYSE:ARES - Free Report) by 107.7% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 259,567 shares of the asset manager's stock after acquiring an additional 134,567 shares during the quarter. Ares Management makes up 1.2% of Generate Investment Management Ltd's investment portfolio, making the stock its 20th largest position. Generate Investment Management Ltd owned 0.08% of Ares Management worth $30,154,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Triumph Capital Management increased its position in Ares Management by 127.3% during the 2nd quarter. Triumph Capital Management now owns 250 shares of the asset manager's stock valued at $28,000 after purchasing an additional 140 shares during the period. CoreCap Advisors LLC boosted its stake in Ares Management by 178.0% during the third quarter. CoreCap Advisors LLC now owns 253 shares of the asset manager's stock worth $29,000 after acquiring an additional 162 shares in the last quarter. Osbon Capital Management LLC bought a new position in shares of Ares Management during the fourth quarter valued at approximately $32,000. Wellington Altus USA Inc. bought a new stake in shares of Ares Management in the 2nd quarter worth approximately $35,000. Finally, Anchor Investment Management LLC bought a new stake in shares of Ares Management in the 2nd quarter worth approximately $38,000. Institutional investors own 50.03% of the company's stock.

Ares Management Stock Down 2.8%

Shares of NYSE ARES traded down $3.21 during mid-day trading on Wednesday, reaching $112.41. 1,017,129 shares of the company were exchanged, compared to its average volume of 2,922,750. Ares Management Corporation has a 1 year low of $95.80 and a 1 year high of $181.19. The stock has a market cap of $37.13 billion, a price-to-earnings ratio of 51.58, a P/E/G ratio of 1.05 and a beta of 1.53. 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 firm has a 50-day moving average of $131.63 and a 200 day moving average of $124.37.

Ares Management (NYSE:ARES - Get Free Report) last issued its quarterly earnings results on Friday, July 31st. The asset manager reported $1.29 earnings per share 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 business had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.27 billion. During the same quarter in the previous year, the firm earned $1.03 earnings per share. The company's revenue was up 5.8% on a year-over-year basis. On average, research analysts expect that Ares Management Corporation will post 5.90 earnings per share for the current year.

Ares Management Announces Dividend

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

Analyst Ratings Changes

Several analysts have commented on ARES shares. Oppenheimer increased their target price on Ares Management from $151.00 to $162.00 and gave the company an "outperform" rating in a research note on Thursday, August 27th. Citigroup reissued a "market outperform" rating on shares of Ares Management in a report on Friday, October 9th. BMO Capital Markets raised their target price on shares of Ares Management from $128.00 to $134.00 and gave the stock a "market perform" rating in a research note on Monday, August 3rd. Weiss Ratings reissued a "hold (c)" rating on shares of Ares Management in a research note on Friday, August 21st. Finally, JPMorgan Chase & Co. increased their price target on Ares Management from $143.00 to $153.00 and gave the company an "overweight" rating in a research note on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $155.38.

Ares Management 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 serves institutional investors, including pension plans, insurance companies, endowments and foundations, as well as wealth-management clients and other investors.

Its investment businesses include direct lending and other private credit strategies, liquid credit, corporate private equity, real estate, infrastructure and secondary investments.

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