Jupiter Asset Management Ltd. Increases Stake in Ares Management Corporation (NYSE:ARES)

Key Points

• Jupiter Asset Management Ltd. has increased its stake in Ares Management Corporation by 58.6%, now owning 45,136 shares valued at approximately $6.6 million.
• Ares Management reported $1.03 EPS for the latest quarter, missing estimates by $0.12, while achieving revenue of $1.35 billion.
• The firm announced a $1.12 quarterly dividend, representing an annualized dividend of $4.48, with a payout ratio of 258.96%.

Jupiter Asset Management Ltd. grew its stake in Ares Management Corporation (NYSE:ARES - Free Report) by 58.6% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 45,136 shares of the asset manager's stock after buying an additional 16,680 shares during the quarter. Jupiter Asset Management Ltd.'s holdings in Ares Management were worth $6,617,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also made changes to their positions in the company. IFP Advisors Inc raised its position in shares of Ares Management by 129.6% during the 1st quarter. IFP Advisors Inc now owns 1,988 shares of the asset manager's stock worth $291,000 after acquiring an additional 1,122 shares in the last quarter. Cambridge Investment Research Advisors Inc. raised its position in shares of Ares Management by 40.7% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 7,960 shares of the asset manager's stock worth $1,167,000 after acquiring an additional 2,302 shares in the last quarter. Stratos Wealth Partners LTD. raised its position in shares of Ares Management by 4.2% during the 1st quarter. Stratos Wealth Partners LTD. now owns 53,401 shares of the asset manager's stock worth $7,829,000 after acquiring an additional 2,171 shares in the last quarter. TCW Group Inc. raised its position in shares of Ares Management by 99.5% during the 1st quarter. TCW Group Inc. now owns 31,765 shares of the asset manager's stock worth $4,657,000 after acquiring an additional 15,846 shares in the last quarter. Finally, Robeco Institutional Asset Management B.V. acquired a new stake in shares of Ares Management during the 1st quarter worth about $667,000. Hedge funds and other institutional investors own 50.03% of the company's stock.

Ares Management Stock Performance

NYSE ARES opened at $183.10 on Monday. Ares Management Corporation has a fifty-two week low of $110.63 and a fifty-two week high of $200.49. The stock has a market cap of $59.80 billion, a price-to-earnings ratio of 105.84, a price-to-earnings-growth ratio of 1.50 and a beta of 1.40. The business has a fifty day moving average of $174.04 and a 200-day moving average of $166.55. The company has a quick ratio of 1.07, a current 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 EPS for the quarter, missing the consensus estimate of $1.15 by ($0.12). The business had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.02 billion. Ares Management had a net margin of 9.47% and a return on equity of 16.49%. During the same quarter in the previous year, the company posted $0.99 earnings per share. As a group, analysts predict that Ares Management Corporation will post 5.28 earnings per share for the current fiscal year.

Ares Management Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Tuesday, September 16th will be paid a $1.12 dividend. This represents a $4.48 annualized dividend and a yield of 2.4%. Ares Management's payout ratio is currently 258.96%.

Insider Activity at Ares Management

In other Ares Management news, CEO Michael J. Arougheti sold 182,108 shares of the company's stock in a transaction dated Friday, May 16th. The stock was sold at an average price of $170.07, for a total transaction of $30,971,107.56. Following the completion of the sale, the chief executive officer directly owned 350,684 shares in the company, valued at $59,640,827.88. This represents a 34.18% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider David B. Kaplan sold 62,500 shares of the company's stock in a transaction dated Thursday, May 15th. The stock was sold at an average price of $169.36, for a total value of $10,585,000.00. Following the sale, the insider owned 62,500 shares of the company's stock, valued at $10,585,000. This represents a 50.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 873,145 shares of company stock worth $146,204,353. 0.52% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Several research firms have commented on ARES. JMP Securities lifted their price target on Ares Management from $185.00 to $195.00 and gave the stock a "market outperform" rating in a research report on Monday, July 14th. Wells Fargo & Company lifted their price target on Ares Management from $189.00 to $202.00 and gave the stock an "overweight" rating in a research report on Friday, July 11th. TD Cowen cut their price target on Ares Management from $216.00 to $161.00 and set a "buy" rating on the stock in a research report on Wednesday, April 9th. Morgan Stanley cut their price target on Ares Management from $197.00 to $152.00 and set an "equal weight" rating on the stock in a research report on Monday, April 14th. Finally, Barclays lifted their target price on Ares Management from $182.00 to $200.00 and gave the company an "overweight" rating in a research note on Thursday, July 10th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and thirteen have given a buy rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $177.50.

About Ares Management

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.

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