Overbrook Management Corp Has $24.08 Million Position in Ares Management Corporation $ARES

Key Points

• Major institutional investors have increased or initiated large positions in Ares: Overbrook Management raised its stake 37.2% to 148,979 shares worth $24.08 million, while Norges Bank and Winslow opened large stakes and Vanguard and Marshall Wace materially increased holdings, leaving institutional ownership at about 50.03%.
• Analysts are generally positive with a MarketBeat consensus of "Moderate Buy" and an average target of $182.67, though Deutsche Bank and Goldman Sachs trimmed targets to $155 and $165 respectively while maintaining buy ratings.
• Ares missed quarterly EPS ( $1.45 vs. $1.71 expected) but beat revenue, and the company raised its quarterly dividend to $1.35 (annualized $5.40, ~5.0% yield) despite a very high payout ratio (~319%).

Overbrook Management Corp raised its stake in Ares Management Corporation (NYSE:ARES - Free Report) by 37.2% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 148,979 shares of the asset manager's stock after buying an additional 40,417 shares during the quarter. Ares Management accounts for about 4.2% of Overbrook Management Corp's portfolio, making the stock its 9th largest position. Overbrook Management Corp's holdings in Ares Management were worth $24,079,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Norges Bank bought a new stake in shares of Ares Management in the 2nd quarter valued at about $328,910,000. Winslow Capital Management LLC bought a new position in Ares Management during the 2nd quarter worth approximately $161,774,000. Marshall Wace LLP boosted its stake in Ares Management by 487.4% during the 3rd quarter. Marshall Wace LLP now owns 912,656 shares of the asset manager's stock worth $145,925,000 after acquiring an additional 757,293 shares during the last quarter. Vanguard Group Inc. grew its holdings in Ares Management by 3.5% during the third quarter. Vanguard Group Inc. now owns 21,676,470 shares of the asset manager's stock valued at $3,465,851,000 after purchasing an additional 740,103 shares during the period. Finally, Balyasny Asset Management L.P. grew its holdings in Ares Management by 1,172.9% during the third quarter. Balyasny Asset Management L.P. now owns 622,796 shares of the asset manager's stock valued at $99,579,000 after purchasing an additional 573,870 shares during the period. Institutional investors own 50.03% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the stock. Deutsche Bank Aktiengesellschaft upgraded shares of Ares Management from a "hold" rating to a "buy" rating and cut their target price for the stock from $182.00 to $155.00 in a report on Friday, February 6th. The Goldman Sachs Group lowered their price objective on shares of Ares Management from $189.00 to $165.00 and set a "buy" rating for the company in a research report on Friday, February 6th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Ares Management in a research note on Monday, December 29th. Wall Street Zen lowered Ares Management from a "hold" rating to a "sell" rating in a report on Saturday, February 28th. Finally, Morgan Stanley set a $178.00 target price on Ares Management in a research note on Tuesday, January 27th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Ares Management has a consensus rating of "Moderate Buy" and an average target price of $182.67.

Insider Activity

In other news, Director Judy D. Olian purchased 480 shares of the business's stock in a transaction dated Friday, February 20th. The shares were bought at an average cost of $124.43 per share, for a total transaction of $59,726.40. Following the completion of the acquisition, the director directly owned 29,734 shares in the company, valued at approximately $3,699,801.62. This trade represents a 1.64% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Ashish Bhutani acquired 10,000 shares of Ares Management stock in a transaction dated Friday, February 6th. The shares were purchased at an average cost of $126.61 per share, with a total value of $1,266,100.00. Following the completion of the transaction, the director directly owned 34,071 shares of the company's stock, valued at $4,313,729.31. This trade represents a 41.54% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 0.52% of the company's stock.

Ares Management Stock Performance

Shares of ARES opened at $107.09 on Tuesday. The firm has a market cap of $35.28 billion, a P/E ratio of 63.37, a PEG ratio of 0.78 and a beta of 1.56. Ares Management Corporation has a twelve month low of $95.80 and a twelve month high of $195.26. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.22 and a current ratio of 1.22. The firm's 50 day moving average price is $130.84 and its two-hundred day moving average price is $150.48.

Ares Management (NYSE:ARES - Get Free Report) last issued its quarterly earnings data on Thursday, February 5th. The asset manager reported $1.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.71 by ($0.26). Ares Management had a return on equity of 19.04% and a net margin of 9.41%.The company had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.38 billion. During the same period in the prior year, the company earned $0.55 EPS. On average, analysts forecast that Ares Management Corporation will post 5.28 EPS for the current fiscal year.

Ares Management Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be issued a dividend of $1.35 per share. This is a boost from Ares Management's previous quarterly dividend of $0.84. The ex-dividend date is Tuesday, March 17th. This represents a $5.40 dividend on an annualized basis and a yield of 5.0%. Ares Management's dividend payout ratio is currently 319.53%.

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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