Capital International Investors Grows Stock Position in Ares Management Corporation $ARES

Key Points

• Capital International Investors increased its stake in Ares Management by 0.4%, owning 4,243,194 shares (1.30% of the company) worth about $678.45 million at the end of the quarter.
• Several analysts cut price targets (recent range roughly $148–$215), but the consensus rating remains a Moderate Buy with a consensus target of $182.67.
• Ares raised its quarterly dividend to $1.35 (annualized $5.40), implying a 5.0% yield, while the payout ratio sits very high at 265.09%.

Capital International Investors boosted its holdings in Ares Management Corporation (NYSE:ARES - Free Report) by 0.4% during the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 4,243,194 shares of the asset manager's stock after buying an additional 15,913 shares during the period. Capital International Investors owned 1.30% of Ares Management worth $678,448,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in ARES. AQR Capital Management LLC boosted its position in shares of Ares Management by 116.7% in the first quarter. AQR Capital Management LLC now owns 10,360 shares of the asset manager's stock worth $1,519,000 after acquiring an additional 5,579 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Ares Management by 5.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,344 shares of the asset manager's stock valued at $197,000 after purchasing an additional 70 shares during the period. Empowered Funds LLC increased its position in Ares Management by 42.7% during the first quarter. Empowered Funds LLC now owns 6,197 shares of the asset manager's stock worth $909,000 after purchasing an additional 1,853 shares during the last quarter. Focus Partners Wealth raised its stake in Ares Management by 15.3% during the first quarter. Focus Partners Wealth now owns 1,902 shares of the asset manager's stock worth $279,000 after purchasing an additional 252 shares during the period. Finally, Geneos Wealth Management Inc. raised its stake in Ares Management by 708.2% during the first quarter. Geneos Wealth Management Inc. now owns 493 shares of the asset manager's stock worth $72,000 after purchasing an additional 432 shares during the period. Hedge funds and other institutional investors own 50.03% of the company's stock.

Analysts Set New Price Targets

Several analysts have recently issued reports on the stock. Oppenheimer lowered their price objective on shares of Ares Management from $224.00 to $215.00 and set an "outperform" rating for the company in a research note on Friday, February 6th. Barclays cut their target price on Ares Management from $222.00 to $190.00 and set an "overweight" rating on the stock in a research report on Friday, February 6th. The Goldman Sachs Group lowered their price target on Ares Management from $189.00 to $165.00 and set a "buy" rating for the company in a research report on Friday, February 6th. UBS Group set a $148.00 price target on Ares Management in a research note on Friday, February 20th. Finally, Deutsche Bank Aktiengesellschaft upgraded Ares Management from a "hold" rating to a "buy" rating and cut their price objective for the stock from $182.00 to $155.00 in a report on Friday, February 6th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, Ares Management presently has a consensus rating of "Moderate Buy" and a consensus target price of $182.67.

Ares Management Price Performance

Ares Management stock opened at $108.55 on Wednesday. The firm has a fifty day moving average of $142.84 and a 200-day moving average of $155.25. Ares Management Corporation has a 52-week low of $105.47 and a 52-week high of $195.26. 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 firm has a market capitalization of $35.76 billion, a P/E ratio of 64.23, a PEG ratio of 0.69 and a beta of 1.55.

Ares Management (NYSE:ARES - Get Free Report) last posted its earnings results on Thursday, February 5th. The asset manager reported $1.45 earnings per share for the quarter, missing the consensus estimate of $1.71 by ($0.26). Ares Management had a net margin of 9.41% and a return on equity of 19.04%. The business had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.38 billion. During the same quarter in the previous year, the firm posted $0.55 EPS. As a group, analysts predict that Ares Management Corporation will post 5.28 EPS for the current year.

Ares Management Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be paid a dividend of $1.35 per share. This is a boost from Ares Management's previous quarterly dividend of $0.84. This represents a $5.40 dividend on an annualized basis and a dividend yield of 5.0%. The ex-dividend date is Tuesday, March 17th. Ares Management's payout ratio is presently 265.09%.

Insider Activity

In related news, Director Ashish Bhutani purchased 10,000 shares of the firm's stock in a transaction on Friday, February 6th. The stock was purchased at an average price of $126.61 per share, for a total transaction of $1,266,100.00. Following the acquisition, the director directly owned 34,071 shares in the company, valued at $4,313,729.31. The trade was a 41.54% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Judy D. Olian acquired 480 shares of the stock in a transaction on Friday, February 20th. The stock was purchased at an average cost of $124.43 per share, with a total value of $59,726.40. Following the transaction, the director directly owned 29,734 shares of the company's stock, valued at $3,699,801.62. This represents a 1.64% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.52% of the stock is owned by corporate insiders.

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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