Vulcan Value Partners LLC Lowers Stake in Ares Management Corporation (NYSE:ARES)

Key Points

• Vulcan Value Partners LLC reduced its stake in Ares Management Corporation by 61.4% in the first quarter, now holding 138,622 shares valued at approximately $20.36 million.
• Ares Management Corporation reported $1.03 EPS for the latest quarter, falling short of analysts' expectations by $0.12, while its annualized dividend is $4.48 with a yield of 2.4%.
• The stock has seen varied expert opinions with price targets ranging from $152 to $200, while maintaining a consensus rating of "Moderate Buy".

Vulcan Value Partners LLC reduced its holdings in Ares Management Corporation (NYSE:ARES - Free Report) by 61.4% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 138,622 shares of the asset manager's stock after selling 220,457 shares during the quarter. Vulcan Value Partners LLC's holdings in Ares Management were worth $20,359,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also modified their holdings of the company. IFP Advisors Inc lifted its stake in shares of Ares Management by 129.6% in the 1st quarter. IFP Advisors Inc now owns 1,988 shares of the asset manager's stock valued at $291,000 after purchasing an additional 1,122 shares during the period. Cambridge Investment Research Advisors Inc. grew its holdings in shares of Ares Management by 40.7% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 7,960 shares of the asset manager's stock valued at $1,167,000 after acquiring an additional 2,302 shares in the last quarter. Stratos Wealth Partners LTD. lifted its stake in Ares Management by 4.2% in the 1st quarter. Stratos Wealth Partners LTD. now owns 53,401 shares of the asset manager's stock valued at $7,829,000 after purchasing an additional 2,171 shares during the last quarter. TCW Group Inc. lifted its stake in Ares Management by 99.5% in the 1st quarter. TCW Group Inc. now owns 31,765 shares of the asset manager's stock valued at $4,657,000 after purchasing an additional 15,846 shares during the last quarter. Finally, Robeco Institutional Asset Management B.V. acquired a new stake in Ares Management during the first quarter worth approximately $667,000. 50.03% of the stock is owned by institutional investors and hedge funds.

Ares Management Stock Up 3.3%

ARES stock traded up $5.96 during trading on Monday, reaching $188.79. The stock had a trading volume of 1,381,563 shares, compared to its average volume of 1,663,148. Ares Management Corporation has a one year low of $110.63 and a one year high of $200.49. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.61. The company's 50 day moving average is $174.04 and its two-hundred day moving average is $166.55. The company has a market capitalization of $61.65 billion, a price-to-earnings ratio of 109.13, a P/E/G ratio of 1.50 and a beta of 1.40.

Ares Management (NYSE:ARES - Get Free Report) last released its earnings results on Friday, August 1st. The asset manager reported $1.03 earnings per share for the quarter, missing analysts' consensus estimates of $1.15 by ($0.12). The company had revenue of $1.35 billion during the quarter, compared to analysts' expectations of $1.02 billion. Ares Management had a net margin of 9.47% and a return on equity of 16.49%. During the same quarter in the previous year, the firm earned $0.99 earnings per share. Equities research analysts forecast that Ares Management Corporation will post 5.28 EPS for the current 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 dividend of $1.12 per share. This represents a $4.48 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Tuesday, September 16th. Ares Management's dividend payout ratio is presently 258.96%.

Analysts Set New Price Targets

Several research analysts have recently commented on ARES shares. Citigroup reaffirmed an "outperform" rating on shares of Ares Management in a report on Monday, July 14th. Raymond James Financial initiated coverage on shares of Ares Management in a report on Monday, July 28th. They set a "market perform" rating on the stock. Citizens Jmp upgraded shares of Ares Management from a "market perform" rating to an "outperform" rating and set a $165.00 target price on the stock in a report on Tuesday, April 8th. TD Cowen decreased their target price on shares of Ares Management from $216.00 to $161.00 and set a "buy" rating for the company in a research report on Wednesday, April 9th. Finally, Morgan Stanley decreased their target price on shares of Ares Management from $197.00 to $152.00 and set an "equal weight" rating for the company in a research report on Monday, April 14th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and thirteen have issued a buy rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $177.56.

Insider Activity at Ares Management

In related news, CEO Michael J. Arougheti sold 107,500 shares of the company's stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $161.34, for a total transaction of $17,344,050.00. Following the sale, the chief executive officer directly owned 1,400,000 shares in the company, valued at approximately $225,876,000. This represents a 7.13% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider David B. Kaplan sold 33,145 shares of the stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of $165.12, for a total transaction of $5,472,902.40. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 873,145 shares of company stock worth $146,204,353. 0.52% of the stock is owned by corporate insiders.

About Ares Management

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.