Hsbc Holdings PLC Sells 26,926 Shares of Ares Management Corporation $ARES

Key Points

• HSBC Holdings PLC reduced its stake in Ares Management by 6.8% in the first quarter, selling 26,926 shares and leaving it with 369,039 shares worth about $40.3 million.
• Ares Management shares were down 3.4% to $121.41, with the stock trading below its 50-day and 200-day moving averages and carrying a market value of roughly $40.05 billion.
• The company posted mixed quarterly results: earnings of $1.24 per share missed estimates, while revenue of $1.40 billion topped expectations; analysts still have a consensus rating of Moderate Buy with an average target price of $159.13.

Hsbc Holdings PLC trimmed its stake in Ares Management Corporation (NYSE:ARES - Free Report) by 6.8% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 369,039 shares of the asset manager's stock after selling 26,926 shares during the period. Hsbc Holdings PLC owned about 0.11% of Ares Management worth $40,276,000 as of its most recent SEC filing.

A number of other large investors have also recently bought and sold shares of ARES. Quilter Plc raised its position in Ares Management by 5.6% in the 4th quarter. Quilter Plc now owns 704,069 shares of the asset manager's stock worth $113,799,000 after purchasing an additional 37,366 shares during the last quarter. New York Life Investment Management LLC boosted its position in Ares Management by 1,033.1% in the 4th quarter. New York Life Investment Management LLC now owns 28,272 shares of the asset manager's stock valued at $4,570,000 after buying an additional 25,777 shares during the last quarter. Osprey Private Wealth LLC increased its stake in shares of Ares Management by 25.6% in the 4th quarter. Osprey Private Wealth LLC now owns 64,530 shares of the asset manager's stock valued at $10,430,000 after buying an additional 13,165 shares during the period. Vanguard Group Inc. increased its stake in shares of Ares Management by 20.2% in the 4th quarter. Vanguard Group Inc. now owns 26,050,425 shares of the asset manager's stock valued at $4,210,530,000 after buying an additional 4,373,955 shares during the period. Finally, M&T Bank Corp increased its stake in shares of Ares Management by 169.3% in the 4th quarter. M&T Bank Corp now owns 26,526 shares of the asset manager's stock valued at $4,287,000 after buying an additional 16,677 shares during the period. 50.03% of the stock is currently owned by institutional investors.

Ares Management Stock Down 3.4%

Ares Management stock opened at $121.41 on Tuesday. Ares Management Corporation has a fifty-two week low of $95.80 and a fifty-two week high of $195.26. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.23 and a quick ratio of 0.23. The firm has a market capitalization of $40.05 billion, a price-to-earnings ratio of 56.47, a PEG ratio of 1.12 and a beta of 1.51. The company's 50 day simple moving average is $123.70 and its 200 day simple moving average is $126.52.

Ares Management (NYSE:ARES - Get Free Report) last posted its earnings results on Friday, May 1st. The asset manager reported $1.24 earnings per share for the quarter, missing the consensus estimate of $1.32 by ($0.08). The firm had revenue of $1.40 billion during the quarter, compared to analyst estimates 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 business posted $1.09 earnings per share. As a group, sell-side analysts anticipate that Ares Management Corporation will post 5.99 EPS for the current year.

Ares Management Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th were given a $1.35 dividend. The ex-dividend date was Tuesday, June 16th. This represents a $5.40 dividend on an annualized basis and a dividend yield of 4.4%. Ares Management's dividend payout ratio is currently 251.16%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on ARES shares. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Ares Management in a research note on Wednesday, April 29th. Citigroup reiterated an "outperform" rating on shares of Ares Management in a research report on Thursday, July 9th. BMO Capital Markets upped their target price on shares of Ares Management from $125.00 to $128.00 and gave the company a "market perform" rating in a research report on Monday, July 13th. Weiss Ratings restated a "hold (c)" rating on shares of Ares Management in a research report on Tuesday, May 26th. Finally, Morgan Stanley lowered their price target on shares of Ares Management from $178.00 to $163.00 and set an "equal weight" rating for the company in a research report on Tuesday, April 21st. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $159.13.

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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