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

Key Points

• Capital International Investors increased its Ares Management stake by 0.3% in the fourth quarter, ending with 4.26 million shares valued at about $688.2 million.
• Ares Management reported Q1 EPS of $1.24, missing analyst expectations, though revenue came in at $1.40 billion, above estimates. The company also posted strong profitability metrics, including a 22.14% return on equity.
• The company declared a quarterly dividend of $1.35 per share, equal to an annualized yield of about 4.3%, while analysts currently rate the stock a Moderate Buy with a consensus price target of $162.56.

Capital International Investors grew its holdings in Ares Management Corporation (NYSE:ARES - Free Report) by 0.3% in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 4,257,710 shares of the asset manager's stock after buying an additional 14,516 shares during the period. Capital International Investors owned approximately 1.30% of Ares Management worth $688,176,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also made changes to their positions in the business. AQR Capital Management LLC boosted its stake in shares of Ares Management by 116.7% during the 1st quarter. AQR Capital Management LLC now owns 10,360 shares of the asset manager's stock worth $1,519,000 after purchasing an additional 5,579 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Ares Management by 5.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,344 shares of the asset manager's stock worth $197,000 after purchasing an additional 70 shares during the period. Empowered Funds LLC boosted its stake in shares of Ares Management by 42.7% during the 1st 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 period. Focus Partners Wealth boosted its stake in shares of Ares Management by 15.3% during the 1st 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. boosted its stake in shares of Ares Management by 708.2% during the 1st 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. 50.03% of the stock is owned by hedge funds and other institutional investors.

Ares Management Trading Up 0.2%

NYSE ARES opened at $125.92 on Monday. The company has a quick ratio of 0.23, a current ratio of 0.23 and a debt-to-equity ratio of 0.96. The firm has a market cap of $41.53 billion, a PE ratio of 58.57, a price-to-earnings-growth ratio of 1.10 and a beta of 1.51. The company has a 50 day moving average price of $117.49 and a 200 day moving average price of $135.34. Ares Management Corporation has a 52 week low of $95.80 and a 52 week high of $195.26.

Ares Management (NYSE:ARES - Get Free Report) last posted its quarterly earnings data on Friday, May 1st. The asset manager reported $1.24 EPS for the quarter, missing the consensus estimate of $1.32 by ($0.08). The firm had revenue of $1.40 billion for the quarter, compared to the consensus estimate of $1.28 billion. Ares Management had a return on equity of 22.14% and a net margin of 10.54%.During the same quarter last year, the firm earned $1.09 EPS. As a group, sell-side analysts forecast that Ares Management Corporation will post 6.06 EPS for the current fiscal year.

Ares Management Announces Dividend

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

Wall Street Analyst Weigh In

ARES has been the subject of several research reports. JPMorgan Chase & Co. lowered their price objective on shares of Ares Management from $188.00 to $144.00 and set an "overweight" rating for the company in a research report on Tuesday, April 28th. Oppenheimer reissued an "outperform" rating and issued a $146.00 price objective (down from $147.00) on shares of Ares Management in a research report on Monday, May 4th. Weiss Ratings reissued a "hold (c)" rating on shares of Ares Management in a research report on Tuesday, May 26th. BMO Capital Markets lowered their price objective on shares of Ares Management from $140.00 to $112.00 and set a "market perform" rating for the company in a research report on Tuesday, March 24th. Finally, TD Cowen lowered their price objective on shares of Ares Management from $148.00 to $144.00 and set a "buy" rating for the company in a research report on Monday, May 18th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $162.56.

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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