Teachers Retirement System of The State of Kentucky Buys New Stake in Ares Management Corporation $ARES

Key Points

• Teachers Retirement System of the State of Kentucky bought a new stake of 15,000 shares in Ares Management (NYSE:ARES) during Q4, valued at about $2.425 million.
• Ares increased its quarterly dividend to $1.35 from $0.84 (annualized $5.40), yielding ~4.8%, though the dividend payout ratio is unusually high at 319.53%.
• Q4 results showed mixed signals: Ares reported EPS of $1.45 (missed the $1.71 consensus) while revenue of $1.50 billion beat estimates; analysts have since adjusted price targets but the consensus rating is a "Moderate Buy" with a $165.31 target.

Teachers Retirement System of The State of Kentucky bought a new stake in shares of Ares Management Corporation (NYSE:ARES - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 15,000 shares of the asset manager's stock, valued at approximately $2,425,000.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Exchange Traded Concepts LLC lifted its holdings in shares of Ares Management by 100.0% during the 3rd quarter. Exchange Traded Concepts LLC now owns 190 shares of the asset manager's stock valued at $30,000 after acquiring an additional 95 shares in the last quarter. Redmont Wealth Advisors LLC acquired a new position in shares of Ares Management during the 3rd quarter valued at $40,000. Atlantic Edge Private Wealth Management LLC acquired a new position in shares of Ares Management during the 4th quarter valued at $42,000. Washington Trust Advisors Inc. acquired a new position in Ares Management in the 3rd quarter worth $50,000. Finally, First Horizon Corp acquired a new position in Ares Management in the 3rd quarter worth $51,000. Institutional investors and hedge funds own 50.03% of the company's stock.

Ares Management Stock Performance

Shares of Ares Management stock opened at $112.98 on Wednesday. The firm has a market cap of $37.22 billion, a PE ratio of 66.85, a price-to-earnings-growth ratio of 0.99 and a beta of 1.52. The firm's 50-day simple moving average is $110.89 and its 200-day simple moving average is $139.94. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.22 and a current ratio of 1.22. Ares Management Corporation has a 1 year low of $95.80 and a 1 year high of $195.26.

Ares Management (NYSE:ARES - Get Free Report) last issued its earnings results on Thursday, February 5th. The asset manager reported $1.45 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.71 by ($0.26). The company had revenue of $1.50 billion during the quarter, compared to analyst estimates of $1.38 billion. Ares Management had a net margin of 9.41% and a return on equity of 19.04%. During the same quarter last year, the company posted $0.55 EPS. Equities analysts forecast that Ares Management Corporation will post 6.22 earnings per share for the current fiscal year.

Ares Management Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th were paid a $1.35 dividend. This is a boost from Ares Management's previous quarterly dividend of $0.84. The ex-dividend date was Tuesday, March 17th. This represents a $5.40 dividend on an annualized basis and a dividend yield of 4.8%. Ares Management's dividend payout ratio (DPR) is currently 319.53%.

Insider Transactions at Ares Management

In related news, Director Ashish Bhutani bought 10,000 shares of the business's stock in a transaction dated Friday, February 6th. The shares were acquired at an average price of $126.61 per share, for a total transaction of $1,266,100.00. Following the purchase, the director owned 34,071 shares in the company, valued at $4,313,729.31. This trade represents a 41.54% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Judy D. Olian bought 480 shares of the business's stock in a transaction dated Friday, February 20th. The stock was bought at an average price of $124.43 per share, for a total transaction of $59,726.40. Following the purchase, the director owned 29,734 shares in the company, valued at approximately $3,699,801.62. This represents a 1.64% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.52% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. UBS Group set a $148.00 price objective on shares of Ares Management in a report on Friday, February 20th. The Goldman Sachs Group cut their price objective on shares of Ares Management from $165.00 to $131.00 and set a "buy" rating on the stock in a report on Tuesday, April 7th. Morgan Stanley cut their price objective on shares of Ares Management from $178.00 to $163.00 and set an "equal weight" rating on the stock in a report on Tuesday, April 21st. BMO Capital Markets cut their price objective on shares of Ares Management from $140.00 to $112.00 and set a "market perform" rating on the stock in a report on Tuesday, March 24th. Finally, Barclays cut their price objective on shares of Ares Management from $138.00 to $127.00 and set an "overweight" rating on the stock in a report on Wednesday, April 8th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $165.31.

About Ares Management

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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