Vanguard Group Inc. Raises Stock Position in Ares Management Corporation $ARES

Key Points

• Vanguard Group increased its stake in Ares by 20.2% in Q4 to 26,050,425 shares (about 7.97% of the company), valued at roughly $4.21 billion.
• Ares raised its quarterly dividend from $0.84 to $1.35 (annualized $5.40), implying a ~4.8% yield, though the payout ratio is very high at 319.53%.
• Company insiders added to their positions: Director Judy D. Olian bought 480 shares and Director Ashish Bhutani bought 10,000 shares (a 41.5% increase), with insiders owning 0.52% of the stock.

Vanguard Group Inc. raised its stake in Ares Management Corporation (NYSE:ARES - Free Report) by 20.2% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 26,050,425 shares of the asset manager's stock after buying an additional 4,373,955 shares during the period. Vanguard Group Inc. owned approximately 7.97% of Ares Management worth $4,210,530,000 at the end of the most recent reporting period.

A number of other hedge funds also recently added to or reduced their stakes in ARES. AQR Capital Management LLC increased its holdings in Ares Management by 116.7% in the first quarter. AQR Capital Management LLC now owns 10,360 shares of the asset manager's stock valued at $1,519,000 after buying an additional 5,579 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Ares Management by 5.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,344 shares of the asset manager's stock valued at $197,000 after buying an additional 70 shares in the last quarter. Empowered Funds LLC grew its position in shares of Ares Management by 42.7% in the first quarter. Empowered Funds LLC now owns 6,197 shares of the asset manager's stock valued at $909,000 after purchasing an additional 1,853 shares during the last quarter. Focus Partners Wealth grew its position in shares of Ares Management by 15.3% in the first quarter. Focus Partners Wealth now owns 1,902 shares of the asset manager's stock valued at $279,000 after purchasing an additional 252 shares during the last quarter. Finally, Geneos Wealth Management Inc. grew its position in shares of Ares Management by 708.2% in the first quarter. Geneos Wealth Management Inc. now owns 493 shares of the asset manager's stock valued at $72,000 after purchasing an additional 432 shares during the last quarter. 50.03% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

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

Wall Street Analyst Weigh In

Several research firms have recently commented on ARES. Deutsche Bank Aktiengesellschaft upgraded shares of Ares Management from a "hold" rating to a "buy" rating and lowered their price target for the company from $182.00 to $155.00 in a research report on Friday, February 6th. Royal Bank Of Canada lowered their price target on shares of Ares Management from $180.00 to $173.00 and set an "outperform" rating on the stock in a research report on Tuesday, February 24th. Weiss Ratings reiterated a "hold (c)" rating on shares of Ares Management in a research report on Monday, December 29th. Oppenheimer lowered their price target on shares of Ares Management from $215.00 to $147.00 and set an "outperform" rating on the stock in a research report on Monday, April 13th. Finally, Wolfe Research set a $210.00 target price on shares of Ares Management and gave the stock an "outperform" rating in a research report on Wednesday, January 7th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $166.73.

Ares Management Stock Down 2.6%

Shares of NYSE ARES opened at $112.24 on Tuesday. Ares Management Corporation has a 1 year low of $95.80 and a 1 year high of $195.26. The firm's 50 day moving average price is $111.24 and its 200 day moving average price is $140.13. The firm has a market cap of $36.98 billion, a P/E ratio of 66.41, a price-to-earnings-growth ratio of 1.02 and a beta of 1.52. 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 (NYSE:ARES - Get Free Report) last announced 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 firm had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.38 billion. Ares Management had a return on equity of 19.04% and a net margin of 9.41%.During the same quarter last year, the business posted $0.55 EPS. As a group, sell-side analysts anticipate that Ares Management Corporation will post 6.22 earnings per share for the current year.

Ares Management Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th were paid a dividend of $1.35 per share. This is an increase from Ares Management's previous quarterly dividend of $0.84. This represents a $5.40 dividend on an annualized basis and a yield of 4.8%. The ex-dividend date of this dividend was Tuesday, March 17th. Ares Management's payout ratio is 319.53%.

Ares Management 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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