Ares Management (NYSE:ARES) Sees Large Volume Increase – Here’s Why

Ares Management Co. (NYSE:ARES) saw unusually-strong trading volume on Tuesday . Approximately 1,298,121 shares traded hands during trading, an increase of 7% from the previous session’s volume of 1,216,245 shares.The stock last traded at $153.31 and had previously closed at $153.75.

Analyst Upgrades and Downgrades

ARES has been the subject of several research analyst reports. Barclays dropped their target price on shares of Ares Management from $224.00 to $217.00 and set an “overweight” rating for the company in a research report on Thursday, February 6th. JMP Securities reaffirmed a “market perform” rating on shares of Ares Management in a research report on Thursday, February 6th. StockNews.com lowered Ares Management from a “hold” rating to a “sell” rating in a research report on Wednesday, January 8th. Wells Fargo & Company decreased their price objective on Ares Management from $215.00 to $187.00 and set an “overweight” rating for the company in a report on Thursday, March 20th. Finally, Keefe, Bruyette & Woods upgraded shares of Ares Management from a “market perform” rating to an “outperform” rating and boosted their target price for the company from $166.00 to $202.00 in a report on Friday, December 20th. One analyst has rated the stock with a sell rating, five have given a hold rating and eight have assigned a buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $173.83.

Ares Management Trading Down 1.2 %

The stock has a market cap of $48.47 billion, a PE ratio of 75.71, a PEG ratio of 1.28 and a beta of 1.23. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.53. The stock’s fifty day moving average price is $173.80 and its 200 day moving average price is $170.36.

Ares Management (NYSE:ARES) last issued its quarterly earnings data on Wednesday, February 5th. The asset manager reported $1.23 EPS for the quarter, missing the consensus estimate of $1.35 by ($0.12). Ares Management had a return on equity of 16.64% and a net margin of 11.35%. On average, sell-side analysts forecast that Ares Management Co. will post 5.28 EPS for the current year.

Ares Management Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 31st. Stockholders of record on Monday, March 17th will be paid a $1.12 dividend. The ex-dividend date of this dividend is Monday, March 17th. This represents a $4.48 annualized dividend and a dividend yield of 2.92%. This is an increase from Ares Management’s previous quarterly dividend of $0.93. Ares Management’s dividend payout ratio (DPR) is 183.25%.

Insider Activity at Ares Management

In related news, CEO Michael J. Arougheti sold 110,845 shares of the firm’s stock in a transaction on Monday, March 24th. The shares were sold at an average price of $153.17, for a total value of $16,978,128.65. Following the completion of the transaction, the chief executive officer now directly owns 1,400,000 shares of the company’s stock, valued at approximately $214,438,000. This trade represents a 7.34 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider R. Kipp Deveer sold 78,933 shares of Ares Management stock in a transaction on Thursday, February 6th. The stock was sold at an average price of $190.02, for a total transaction of $14,998,848.66. Following the completion of the transaction, the insider now directly owns 1,150,000 shares of the company’s stock, valued at $218,523,000. The trade was a 6.42 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 329,113 shares of company stock worth $54,409,915. 1.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Ares Management

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ARES. Principal Financial Group Inc. increased its position in shares of Ares Management by 31.3% during the 3rd quarter. Principal Financial Group Inc. now owns 2,849,737 shares of the asset manager’s stock valued at $444,103,000 after purchasing an additional 678,549 shares during the last quarter. Pathstone Holdings LLC increased its position in Ares Management by 137.0% during the third quarter. Pathstone Holdings LLC now owns 11,987 shares of the asset manager’s stock valued at $1,868,000 after acquiring an additional 6,930 shares during the last quarter. Citigroup Inc. raised its stake in shares of Ares Management by 36.9% in the third quarter. Citigroup Inc. now owns 61,170 shares of the asset manager’s stock valued at $9,533,000 after acquiring an additional 16,499 shares during the period. Cerity Partners LLC lifted its holdings in shares of Ares Management by 181.7% in the 3rd quarter. Cerity Partners LLC now owns 10,117 shares of the asset manager’s stock worth $1,577,000 after acquiring an additional 6,525 shares during the last quarter. Finally, Larson Financial Group LLC lifted its holdings in shares of Ares Management by 239.8% in the 3rd quarter. Larson Financial Group LLC now owns 2,039 shares of the asset manager’s stock worth $318,000 after acquiring an additional 1,439 shares during the last quarter. 50.03% of the stock is currently owned by hedge funds and other institutional investors.

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.