Prudential PLC Grows Position in Ares Management Corporation (NYSE:ARES)

Key Points

• Prudential PLC increased its stake in Ares Management Corporation by 305.9%, acquiring 8,110 shares worth approximately $1.19 million as of the last reporting period.
• Ares Management reported a $1.03 EPS in its latest quarterly earnings, falling short of analysts' estimates of $1.15, despite achieving revenue of $1.35 billion.
• The firm will pay a quarterly dividend of $1.12 on September 30, with an annualized yield of 2.4% and a notable payout ratio of 258.96%.

Prudential PLC grew its stake in shares of Ares Management Corporation (NYSE:ARES - Free Report) by 305.9% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 8,110 shares of the asset manager's stock after buying an additional 6,112 shares during the period. Prudential PLC's holdings in Ares Management were worth $1,189,000 at the end of the most recent reporting period.

Several other hedge funds also recently bought and sold shares of the stock. Resona Asset Management Co. Ltd. increased its position in Ares Management by 4.6% during the first quarter. Resona Asset Management Co. Ltd. now owns 55,243 shares of the asset manager's stock worth $8,087,000 after buying an additional 2,429 shares in the last quarter. Westpac Banking Corp increased its position in Ares Management by 33.1% during the first quarter. Westpac Banking Corp now owns 442 shares of the asset manager's stock worth $65,000 after buying an additional 110 shares in the last quarter. HighTower Advisors LLC increased its position in Ares Management by 0.5% during the first quarter. HighTower Advisors LLC now owns 48,851 shares of the asset manager's stock worth $7,162,000 after buying an additional 259 shares in the last quarter. SouthState Corp purchased a new stake in shares of Ares Management in the first quarter valued at $48,000. Finally, King Luther Capital Management Corp purchased a new stake in shares of Ares Management in the first quarter valued at $13,422,000. Hedge funds and other institutional investors own 50.03% of the company's stock.

Ares Management Trading Down 1.4%

Shares of ARES opened at $187.80 on Friday. The stock's 50-day moving average is $178.49 and its two-hundred day moving average is $166.61. The stock has a market cap of $61.36 billion, a PE ratio of 108.55, a P/E/G ratio of 1.49 and a beta of 1.40. Ares Management Corporation has a 12 month low of $110.63 and a 12 month high of $200.49. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.08 and a quick ratio of 1.07.

Ares Management (NYSE:ARES - Get Free Report) last issued its quarterly earnings data on Friday, August 1st. The asset manager reported $1.03 EPS for the quarter, missing analysts' consensus estimates of $1.15 by ($0.12). The company 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 15.81% and a net margin of 9.47%. During the same quarter in the prior year, the firm earned $0.99 EPS. Equities analysts forecast that Ares Management Corporation will post 5.28 earnings per share for the current fiscal year.

Ares Management Announces Dividend

The firm also recently declared 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. The ex-dividend date is Tuesday, September 16th. This represents a $4.48 annualized dividend and a dividend yield of 2.4%. Ares Management's payout ratio is 258.96%.

Insider Buying and Selling

In related news, CEO Michael J. Arougheti sold 150,000 shares of the business's stock in a transaction dated Tuesday, May 20th. The stock was sold at an average price of $166.37, for a total value of $24,955,500.00. Following the transaction, the chief executive officer owned 107,500 shares in the company, valued at approximately $17,884,775. The trade was a 58.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Chairman Bennett Rosenthal sold 85,000 shares of the business's stock in a transaction dated Thursday, June 12th. The stock was sold at an average price of $168.79, for a total value of $14,347,150.00. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 531,329 shares of company stock worth $88,173,829. 36.86% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

ARES has been the subject of a number of recent analyst reports. Barclays lifted their price objective on Ares Management from $182.00 to $200.00 and gave the company an "overweight" rating in a research report on Thursday, July 10th. JMP Securities lifted their price objective on Ares Management from $195.00 to $205.00 and gave the company a "market outperform" rating in a research report on Wednesday, August 6th. Citigroup reaffirmed an "outperform" rating on shares of Ares Management in a research report on Monday, July 14th. Oppenheimer downgraded Ares Management from an "outperform" rating to a "market perform" rating in a research report on Thursday, May 15th. Finally, Wolfe Research set a $193.00 price objective on Ares Management and gave the company an "outperform" rating in a research report on Tuesday, May 6th. 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's stock. According to data from MarketBeat.com, Ares Management presently has an average rating of "Moderate Buy" and an average price target of $178.19.

Ares Management Company 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.

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