King Luther Capital Management Corp Buys 13,306 Shares of Ares Management Corporation $ARES

Key Points

• King Luther Capital Management increased its Ares Management stake by 7.7% in the fourth quarter, buying 13,306 shares and bringing its holding to 186,957 shares worth about $30.2 million.
• Several other major institutional investors also boosted their positions, and institutional ownership now stands at 50.03% of Ares Management’s stock.
• Analysts remain broadly positive despite some target cuts: the stock carries a Moderate Buy rating with an average price target of $162.56, while Ares also reported mixed quarterly results, missing EPS expectations but beating revenue forecasts.

King Luther Capital Management Corp raised its stake in shares of Ares Management Corporation (NYSE:ARES - Free Report) by 7.7% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The firm owned 186,957 shares of the asset manager's stock after acquiring an additional 13,306 shares during the quarter. King Luther Capital Management Corp owned approximately 0.06% of Ares Management worth $30,218,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. Vanguard Group Inc. lifted its holdings in shares of Ares Management by 20.2% during the fourth quarter. Vanguard Group Inc. now owns 26,050,425 shares of the asset manager's stock valued at $4,210,530,000 after acquiring an additional 4,373,955 shares during the period. Massachusetts Financial Services Co. MA lifted its holdings in shares of Ares Management by 26.3% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 5,705,599 shares of the asset manager's stock valued at $922,196,000 after acquiring an additional 1,187,174 shares during the period. Capital International Investors lifted its holdings in shares of Ares Management by 0.4% during the third quarter. Capital International Investors now owns 4,243,194 shares of the asset manager's stock valued at $678,448,000 after acquiring an additional 15,913 shares during the period. Principal Financial Group Inc. lifted its holdings in shares of Ares Management by 8.6% during the fourth quarter. Principal Financial Group Inc. now owns 3,839,693 shares of the asset manager's stock valued at $620,616,000 after acquiring an additional 304,920 shares during the period. Finally, LRI Investments LLC lifted its holdings in shares of Ares Management by 10.2% during the third quarter. LRI Investments LLC now owns 2,586,253 shares of the asset manager's stock valued at $413,516,000 after acquiring an additional 238,531 shares during the period. 50.03% of the stock is owned by institutional investors.

Analyst Ratings Changes

ARES has been the subject of a number of research analyst reports. TD Cowen cut their price target on Ares Management from $148.00 to $144.00 and set a "buy" rating for the company in a report on Monday, May 18th. JPMorgan Chase & Co. cut their price target on Ares Management from $188.00 to $144.00 and set an "overweight" rating for the company in a report on Tuesday, April 28th. Morgan Stanley cut their price target on Ares Management from $178.00 to $163.00 and set an "equal weight" rating for the company in a report on Tuesday, April 21st. Wall Street Zen cut Ares Management from a "hold" rating to a "sell" rating in a report on Saturday, February 28th. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Ares Management in a report on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $162.56.

Ares Management Stock Performance

Ares Management stock opened at $125.53 on Wednesday. The stock has a 50-day simple moving average of $114.05 and a 200 day simple moving average of $136.64. The company has a quick ratio of 0.23, a current ratio of 0.23 and a debt-to-equity ratio of 0.96. Ares Management Corporation has a 12-month low of $95.80 and a 12-month high of $195.26. The stock has a market capitalization of $41.41 billion, a price-to-earnings ratio of 58.39, a P/E/G ratio of 1.09 and a beta of 1.50.

Ares Management (NYSE:ARES - Get Free Report) last announced its quarterly earnings data 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 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 period in the prior year, the firm posted $1.09 earnings per share. On average, research analysts anticipate that Ares Management Corporation will post 6.06 earnings per share for the current fiscal year.

Ares Management Dividend Announcement

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

Ares Management Company 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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