Saba Capital Management L.P. Purchases New Stake in Ares Management Corporation $ARES

Key Points

• Saba Capital Management initiated a 241,097-share stake in Ares Management worth approximately $26.3 million, representing 0.7% of Saba’s portfolio and 0.07% of Ares’ outstanding shares.
• Several major institutions increased their holdings, including Vanguard, Massachusetts Financial Services and Geode Capital Management; institutional investors collectively own 50.03% of Ares.
• Ares reported quarterly EPS of $1.24, below the $1.32 consensus estimate, despite revenue exceeding expectations. Analysts maintain a “Moderate Buy” consensus with an average price target of $158.93, while the company’s quarterly dividend implies a 4.2% yield.

Saba Capital Management L.P. bought a new position in shares of Ares Management Corporation (NYSE:ARES - Free Report) in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 241,097 shares of the asset manager's stock, valued at approximately $26,304,000. Ares Management accounts for 0.7% of Saba Capital Management L.P.'s investment portfolio, making the stock its 21st largest position. Saba Capital Management L.P. owned 0.07% of Ares Management as of its most recent SEC filing.

Several other large investors also recently modified their holdings of the business. Vanguard Group Inc. boosted its stake in shares of Ares Management by 20.2% during the 4th quarter. Vanguard Group Inc. now owns 26,050,425 shares of the asset manager's stock valued at $4,210,530,000 after purchasing an additional 4,373,955 shares in the last quarter. Massachusetts Financial Services Co. MA raised its stake in Ares Management by 26.3% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 5,705,599 shares of the asset manager's stock worth $922,196,000 after buying an additional 1,187,174 shares in the last quarter. Geode Capital Management LLC raised its stake in Ares Management by 55.7% in the fourth quarter. Geode Capital Management LLC now owns 5,489,004 shares of the asset manager's stock worth $883,716,000 after buying an additional 1,963,460 shares in the last quarter. Capital International Investors raised its stake in Ares Management by 0.3% in the fourth quarter. Capital International Investors now owns 4,257,710 shares of the asset manager's stock worth $688,176,000 after buying an additional 14,516 shares in the last quarter. Finally, Principal Financial Group Inc. lifted its holdings in Ares Management by 4.4% in the first quarter. Principal Financial Group Inc. now owns 4,009,291 shares of the asset manager's stock worth $437,417,000 after buying an additional 169,598 shares during the period. 50.03% of the stock is owned by institutional investors.

Ares Management Stock Up 1.1%

Shares of Ares Management stock opened at $127.85 on Tuesday. Ares Management Corporation has a twelve month low of $95.80 and a twelve month high of $195.26. The company has a quick ratio of 0.23, a current ratio of 0.23 and a debt-to-equity ratio of 0.96. The company's 50 day moving average is $123.57 and its 200 day moving average is $124.96. The company has a market cap of $42.17 billion, a price-to-earnings ratio of 59.46, a price-to-earnings-growth ratio of 1.13 and a beta of 1.51.

Ares Management (NYSE:ARES - Get Free Report) last issued its quarterly earnings data on Friday, May 1st. The asset manager reported $1.24 EPS for the quarter, missing the consensus estimate of $1.32 by ($0.08). The firm had revenue of $1.40 billion during 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 previous year, the firm earned $1.09 EPS. Research analysts anticipate that Ares Management Corporation will post 5.98 EPS for the current year.

Ares Management Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th were issued a $1.35 dividend. This represents a $5.40 annualized dividend and a yield of 4.2%. The ex-dividend date of this dividend was Tuesday, June 16th. Ares Management's dividend payout ratio is currently 251.16%.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on ARES shares. The Goldman Sachs Group dropped their price target on Ares Management from $165.00 to $131.00 and set a "buy" rating on the stock in a research report on Tuesday, April 7th. Keefe, Bruyette & Woods upgraded Ares Management to a "hold" rating in a report on Monday, July 20th. TD Cowen raised their price objective on Ares Management from $144.00 to $153.00 and gave the company a "buy" rating in a research report on Tuesday, June 23rd. BMO Capital Markets raised their price objective on Ares Management from $125.00 to $128.00 and gave the company a "market perform" rating in a research report on Monday, July 13th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Ares Management in a report on Tuesday, May 26th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $158.93.

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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