Cynosure Group LLC Boosts Stake in Ares Management Corporation (NYSE:ARES)

Key Points

• Cynosure Group LLC increased its stake in Ares Management Corporation by 33.7% during the 1st quarter, bringing its total holdings to 6,873 shares valued at approximately $1,008,000.
• Insider sales included significant transactions, with CEO Michael J. Arougheti selling 107,500 shares worth over $17 million, which reflects a 7.13% decrease in his ownership.
• Ares Management recently announced a quarterly dividend of $1.12 per share, representing a yield of 2.4% and a payout ratio of 258.96%.

Cynosure Group LLC lifted its position in shares of Ares Management Corporation (NYSE:ARES - Free Report) by 33.7% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 6,873 shares of the asset manager's stock after acquiring an additional 1,733 shares during the quarter. Cynosure Group LLC's holdings in Ares Management were worth $1,008,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Russell Investments Group Ltd. raised its holdings in Ares Management by 20.2% during the fourth quarter. Russell Investments Group Ltd. now owns 28,870 shares of the asset manager's stock worth $5,125,000 after acquiring an additional 4,842 shares in the last quarter. Cerity Partners LLC boosted its holdings in shares of Ares Management by 170.3% in the 4th quarter. Cerity Partners LLC now owns 27,346 shares of the asset manager's stock valued at $4,807,000 after purchasing an additional 17,229 shares in the last quarter. Renaissance Technologies LLC bought a new position in shares of Ares Management in the 4th quarter valued at $8,427,000. Bessemer Group Inc. lifted its stake in shares of Ares Management by 16.1% in the 4th quarter. Bessemer Group Inc. now owns 4,282 shares of the asset manager's stock valued at $759,000 after acquiring an additional 594 shares during the last quarter. Finally, Treasurer of the State of North Carolina raised its position in Ares Management by 1.7% during the 4th quarter. Treasurer of the State of North Carolina now owns 81,365 shares of the asset manager's stock worth $14,404,000 after purchasing an additional 1,390 shares during the last quarter. Institutional investors own 50.03% of the company's stock.

Ares Management Stock Performance

ARES stock traded up $6.13 on Tuesday, hitting $192.68. The company had a trading volume of 1,278,881 shares, compared to its average volume of 1,644,983. The stock's 50-day simple moving average is $176.88 and its 200 day simple moving average is $166.29. The stock has a market cap of $62.92 billion, a price-to-earnings ratio of 111.37, a P/E/G ratio of 1.47 and a beta of 1.40. Ares Management Corporation has a 12-month low of $110.63 and a 12-month high of $200.49. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.61.

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). Ares Management had a net margin of 9.47% and a return on equity of 16.49%. The firm had revenue of $1.35 billion for the quarter, compared to analysts' expectations of $1.02 billion. During the same quarter last year, the firm posted $0.99 EPS. As a group, equities research analysts expect that Ares Management Corporation will post 5.28 earnings per share for the current fiscal year.

Ares Management Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Tuesday, September 16th will be issued a dividend of $1.12 per share. This represents a $4.48 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Tuesday, September 16th. Ares Management's dividend payout ratio is 258.96%.

Insider Buying and Selling at Ares Management

In related news, insider David B. Kaplan sold 62,500 shares of the stock in a transaction dated Thursday, May 15th. The shares were sold at an average price of $169.36, for a total value of $10,585,000.00. Following the completion of the transaction, the insider owned 62,500 shares of the company's stock, valued at approximately $10,585,000. This trade represents a 50.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Michael J. Arougheti sold 182,108 shares of the stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $170.07, for a total transaction of $30,971,107.56. Following the completion of the transaction, the chief executive officer directly owned 350,684 shares of the company's stock, valued at approximately $59,640,827.88. The trade was a 34.18% decrease in their position. The disclosure for this sale can be found here. Insiders sold 873,145 shares of company stock valued at $146,204,353 in the last 90 days. Insiders own 0.52% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the company. Citigroup restated an "outperform" rating on shares of Ares Management in a research note on Monday, July 14th. Wolfe Research set a $193.00 price objective on Ares Management and gave the company an "outperform" rating in a research note on Tuesday, May 6th. Cfra Research raised shares of Ares Management to a "moderate buy" rating in a report on Monday, August 4th. Barclays upped their target price on shares of Ares Management from $182.00 to $200.00 and gave the stock an "overweight" rating in a research report on Thursday, July 10th. Finally, JMP Securities increased their target price on shares of Ares Management from $195.00 to $205.00 and gave the stock a "market outperform" rating in a report on Wednesday, August 6th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and thirteen have assigned a buy rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $178.19.

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.