Ares Management Corporation $ARES Stock Position Lessened by LRI Investments LLC

Key Points

• LRI Investments LLC reduced its Ares Management stake by 7.5% in the fourth quarter, though the stock remains its largest holding at about 27.1% of the portfolio.
• Ares Management posted mixed quarterly results: EPS of $1.24 missed analyst estimates, but revenue of $1.40 billion beat expectations and was higher than a year ago.
• The company declared a quarterly dividend of $1.35 per share, equal to a $5.40 annualized payout and a 4.3% yield, while analysts currently rate the stock a “Moderate Buy” with an average target price of $166.06.

LRI Investments LLC trimmed its holdings in Ares Management Corporation (NYSE:ARES - Free Report) by 7.5% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,391,373 shares of the asset manager's stock after selling 194,880 shares during the quarter. Ares Management makes up about 27.1% of LRI Investments LLC's holdings, making the stock its biggest position. LRI Investments LLC owned 0.73% of Ares Management worth $386,518,000 as of its most recent SEC filing.

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

Ares Management Trading Up 2.5%

NYSE ARES opened at $126.23 on Friday. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.86. The stock has a market capitalization of $41.59 billion, a P/E ratio of 58.71, a P/E/G ratio of 1.10 and a beta of 1.50. Ares Management Corporation has a 52-week low of $95.80 and a 52-week high of $195.26. The firm has a 50-day moving average price of $110.48 and a 200 day moving average price of $139.03.

Ares Management (NYSE:ARES - Get Free Report) last announced its quarterly earnings data on Friday, May 1st. The asset manager reported $1.24 earnings per share for the quarter, missing analysts' consensus estimates of $1.32 by ($0.08). Ares Management had a net margin of 10.54% and a return on equity of 22.02%. The business had revenue of $1.40 billion during the quarter, compared to analysts' expectations of $1.28 billion. During the same period in the prior year, the firm posted $1.09 EPS. Equities research analysts expect that Ares Management Corporation will post 6.05 EPS for the current year.

Ares Management Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 16th will be given a $1.35 dividend. The ex-dividend date is Tuesday, June 16th. This represents a $5.40 annualized dividend and a yield of 4.3%. Ares Management's dividend payout ratio is presently 251.16%.

Insider Transactions at Ares Management

In other Ares Management news, Director Judy D. Olian bought 480 shares of Ares Management stock in a transaction on Friday, February 20th. The stock was bought at an average price of $124.43 per share, with a total value of $59,726.40. Following the completion of the acquisition, the director owned 29,734 shares in the company, valued at $3,699,801.62. The trade was a 1.64% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Insiders own 36.86% of the company's stock.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the company. TD Cowen restated a "buy" rating on shares of Ares Management in a research report on Wednesday, January 14th. Deutsche Bank Aktiengesellschaft upgraded Ares Management from a "hold" rating to a "buy" rating and lowered their target price for the company from $182.00 to $155.00 in a research note on Friday, February 6th. UBS Group set a $148.00 target price on Ares Management in a report on Friday, February 20th. Oppenheimer restated an "outperform" rating and set a $146.00 price target (down from $147.00) on shares of Ares Management in a research note on Monday, May 4th. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Ares Management in a report on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $166.06.

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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