Vulcan Value Partners LLC Has $274.34 Million Stock Holdings in Ares Management Corporation $ARES

Key Points

• Vulcan Value Partners increased its Ares Management stake by 25.7% in the fourth quarter, ending with 1,696,856 shares valued at about $274.3 million. The position now makes up 4.9% of the fund’s portfolio and is its ninth-largest holding.
• Other major institutional investors also boosted their Ares holdings, including Vanguard, Massachusetts Financial Services, and Geode Capital Management. Overall, institutional investors own 50.03% of Ares Management’s stock.
• Analysts remain broadly positive despite recent target cuts, with the stock carrying an average rating of “Moderate Buy” and an average price target of $162.56. Ares also reported quarterly EPS of $1.24, missing estimates, while revenue came in above expectations.

Vulcan Value Partners LLC raised its stake in Ares Management Corporation (NYSE:ARES - Free Report) by 25.7% in the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 1,696,856 shares of the asset manager's stock after purchasing an additional 346,607 shares during the quarter. Ares Management accounts for 4.9% of Vulcan Value Partners LLC's portfolio, making the stock its 9th biggest position. Vulcan Value Partners LLC owned 0.52% of Ares Management worth $274,344,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Vanguard Group Inc. lifted its position in Ares Management by 20.2% in the fourth 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 during the last quarter. Massachusetts Financial Services Co. MA lifted its position 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 valued at $922,196,000 after purchasing an additional 1,187,174 shares during the last quarter. Geode Capital Management LLC lifted its position 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 valued at $883,716,000 after purchasing an additional 1,963,460 shares during the last quarter. Capital International Investors lifted its position in Ares Management by 0.4% in the third quarter. Capital International Investors now owns 4,243,194 shares of the asset manager's stock valued at $678,448,000 after purchasing an additional 15,913 shares during the last quarter. Finally, Principal Financial Group Inc. raised its holdings in shares of Ares Management by 8.6% during the fourth quarter. Principal Financial Group Inc. now owns 3,839,693 shares of the asset manager's stock valued at $620,616,000 after acquiring an additional 304,920 shares in the last quarter. Institutional investors own 50.03% of the company's stock.

Analyst Ratings Changes

A number of equities analysts recently commented on the company. The Goldman Sachs Group decreased their target price on Ares Management from $165.00 to $131.00 and set a "buy" rating for the company in a report on Tuesday, April 7th. JPMorgan Chase & Co. decreased their target price on Ares Management from $188.00 to $144.00 and set an "overweight" rating for the company in a report on Tuesday, April 28th. Deutsche Bank Aktiengesellschaft upgraded Ares Management from a "hold" rating to a "buy" rating and decreased their target price for the company from $182.00 to $155.00 in a report on Friday, February 6th. Raymond James Financial upgraded Ares Management from a "market perform" rating to a "strong-buy" rating and set a $157.00 target price for the company in a report on Monday, February 9th. Finally, UBS Group set a $148.00 target price on Ares Management in a report on Friday, February 20th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $162.56.

Ares Management Price Performance

ARES opened at $126.75 on Thursday. The stock has a fifty day simple moving average of $114.57 and a two-hundred day simple moving average of $136.47. The company has a current ratio of 0.23, a quick ratio of 0.23 and a debt-to-equity ratio of 0.96. The company has a market cap of $41.81 billion, a price-to-earnings ratio of 58.95, a price-to-earnings-growth ratio of 1.10 and a beta of 1.50. Ares Management Corporation has a 12-month low of $95.80 and a 12-month high of $195.26.

Ares Management (NYSE:ARES - Get Free Report) last posted its quarterly earnings data on Friday, May 1st. The asset manager reported $1.24 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 quarter last year, the company posted $1.09 EPS. Research analysts predict that Ares Management Corporation will post 6.06 earnings per share for the current fiscal year.

Ares Management Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th will be paid a $1.35 dividend. This represents a $5.40 dividend on an annualized basis and a dividend yield of 4.3%. The ex-dividend date of this dividend is Tuesday, June 16th. Ares Management's dividend payout ratio is currently 251.16%.

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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