Mackenzie Financial Corp Raises Position in Ares Management Corporation (NYSE:ARES)

Key Points

• Mackenzie Financial Corp increased its stake in Ares Management Corporation by 76.5%, acquiring an additional 47,571 shares, bringing their total holdings to 109,725 shares valued at approximately $16.1 million.
• Insider transactions included Bennett Rosenthal, Chairman, selling 85,000 shares valued at over $14.3 million, and CEO Michael J. Arougheti selling 107,500 shares worth about $17.3 million, resulting in a decrease in their ownership percentages.
• Ares Management recently announced a quarterly dividend of $1.12, with a dividend yield of 2.38%, and has a market capitalization of $61.35 billion.

Mackenzie Financial Corp increased its stake in Ares Management Corporation (NYSE:ARES - Free Report) by 76.5% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 109,725 shares of the asset manager's stock after acquiring an additional 47,571 shares during the period. Mackenzie Financial Corp's holdings in Ares Management were worth $16,087,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. FMR LLC boosted its holdings in shares of Ares Management by 12.8% in the fourth quarter. FMR LLC now owns 7,109,070 shares of the asset manager's stock valued at $1,258,519,000 after purchasing an additional 807,361 shares during the period. Millennium Management LLC boosted its holdings in shares of Ares Management by 394.8% in the fourth quarter. Millennium Management LLC now owns 766,267 shares of the asset manager's stock valued at $135,652,000 after purchasing an additional 611,414 shares during the period. Lord Abbett & CO. LLC boosted its holdings in shares of Ares Management by 443.8% in the fourth quarter. Lord Abbett & CO. LLC now owns 383,209 shares of the asset manager's stock valued at $67,839,000 after purchasing an additional 312,742 shares during the period. Brown Advisory Inc. boosted its holdings in shares of Ares Management by 8.8% in the fourth quarter. Brown Advisory Inc. now owns 3,727,597 shares of the asset manager's stock valued at $659,896,000 after purchasing an additional 302,303 shares during the period. Finally, Capital World Investors boosted its holdings in shares of Ares Management by 2.1% in the fourth quarter. Capital World Investors now owns 10,753,779 shares of the asset manager's stock valued at $1,903,741,000 after purchasing an additional 223,919 shares during the period. Hedge funds and other institutional investors own 50.03% of the company's stock.

Ares Management Trading Down 1.3%

Shares of NYSE ARES traded down $2.43 during midday trading on Friday, reaching $183.10. 2,193,787 shares of the stock were exchanged, compared to its average volume of 1,251,419. The company has a 50 day simple moving average of $174.04 and a 200 day simple moving average of $166.82. The stock has a market capitalization of $59.80 billion, a P/E ratio of 107.71, a PEG ratio of 1.52 and a beta of 1.40. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.07 and a current ratio of 1.07. Ares Management Corporation has a twelve month low of $110.63 and a twelve month high of $200.49.

Ares Management (NYSE:ARES - Get Free Report) last announced its quarterly earnings results on Friday, August 1st. The asset manager reported $1.03 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.15 by ($0.12). The firm had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.02 billion. Ares Management had a return on equity of 16.29% and a net margin of 9.73%. During the same quarter in the prior year, the business earned $0.99 EPS. As a group, equities analysts expect that Ares Management Corporation will post 5.28 earnings per share for the current year.

Ares Management Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Tuesday, September 16th will be given a dividend of $1.12 per share. This represents a $4.48 dividend on an annualized basis and a dividend yield of 2.4%. Ares Management's payout ratio is currently 263.53%.

Analysts Set New Price Targets

A number of equities analysts recently commented on ARES shares. The Goldman Sachs Group reduced their price objective on shares of Ares Management from $188.00 to $166.00 and set a "buy" rating for the company in a research note on Thursday, April 3rd. Wolfe Research set a $193.00 target price on Ares Management and gave the stock an "outperform" rating in a report on Tuesday, May 6th. Barclays upped their target price on Ares Management from $182.00 to $200.00 and gave the stock an "overweight" rating in a report on Thursday, July 10th. Raymond James Financial started coverage on Ares Management in a report on Monday. They set a "market perform" rating for the company. Finally, Oppenheimer lowered Ares Management from an "outperform" rating to a "market perform" rating in a report on Thursday, May 15th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and thirteen have given a buy rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $177.50.

Insider Buying and Selling

In related news, insider David B. Kaplan sold 62,500 shares of the stock in a transaction that occurred on Thursday, May 15th. The shares were sold at an average price of $169.36, for a total transaction 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 transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Chairman Bennett Rosenthal sold 85,000 shares of the stock in a transaction that occurred on Thursday, June 12th. The stock was sold at an average price of $168.79, for a total transaction of $14,347,150.00. The disclosure for this sale can be found here. In the last quarter, insiders sold 873,145 shares of company stock valued at $146,204,353. Company insiders own 36.86% of the company's stock.

Ares Management 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.