Ares Management (NYSE:ARES) Reaches New 52-Week High – Time to Buy?

Ares Management Co. (NYSE:ARES)’s stock price hit a new 52-week high during trading on Tuesday . The stock traded as high as $192.02 and last traded at $193.30, with a volume of 1141 shares changing hands. The stock had previously closed at $191.32.

Analyst Ratings Changes

Several research firms recently issued reports on ARES. Keefe, Bruyette & Woods upgraded shares of Ares Management from a “market perform” rating to an “outperform” rating and increased their price target for the stock from $166.00 to $202.00 in a research report on Friday, December 20th. JPMorgan Chase & Co. reduced their target price on Ares Management from $176.00 to $174.00 and set an “overweight” rating on the stock in a report on Tuesday, November 5th. StockNews.com cut Ares Management from a “hold” rating to a “sell” rating in a report on Wednesday, January 8th. Wells Fargo & Company decreased their target price on Ares Management from $212.00 to $207.00 and set an “overweight” rating on the stock in a research report on Tuesday, January 14th. Finally, Royal Bank of Canada boosted their target price on Ares Management from $170.00 to $185.00 and gave the stock an “outperform” rating in a research note on Monday, November 4th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and eight have given a buy rating to the company. Based on data from MarketBeat.com, Ares Management currently has an average rating of “Moderate Buy” and a consensus price target of $171.92.

Ares Management Price Performance

The stock has a market cap of $60.58 billion, a P/E ratio of 89.18, a P/E/G ratio of 1.43 and a beta of 1.18. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.05 and a current ratio of 1.05. The business has a 50 day simple moving average of $177.20 and a 200-day simple moving average of $160.50.

Ares Management (NYSE:ARES) last posted its quarterly earnings data on Friday, November 1st. The asset manager reported $0.95 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.94 by $0.01. Ares Management had a net margin of 12.51% and a return on equity of 19.89%. The business had revenue of $1.13 billion during the quarter, compared to the consensus estimate of $833.58 million. During the same quarter last year, the company posted $0.83 earnings per share. On average, sell-side analysts forecast that Ares Management Co. will post 4.06 EPS for the current year.

Ares Management Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 31st. Shareholders of record on Tuesday, December 17th were paid a $0.93 dividend. The ex-dividend date of this dividend was Tuesday, December 17th. This represents a $3.72 annualized dividend and a dividend yield of 1.92%. Ares Management’s payout ratio is presently 171.43%.

Insider Transactions at Ares Management

In other news, insider Ryan Berry sold 14,357 shares of the firm’s stock in a transaction on Wednesday, December 11th. The stock was sold at an average price of $180.16, for a total value of $2,586,557.12. Following the completion of the transaction, the insider now directly owns 233,214 shares of the company’s stock, valued at $42,015,834.24. This trade represents a 5.80 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Chairman Bennett Rosenthal sold 15,763 shares of the business’s stock in a transaction on Monday, November 18th. The shares were sold at an average price of $167.24, for a total value of $2,636,204.12. Following the sale, the chairman now owns 214,189 shares in the company, valued at approximately $35,820,968.36. The trade was a 6.85 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 574,167 shares of company stock worth $99,996,647. 41.89% of the stock is owned by company insiders.

Hedge Funds Weigh In On Ares Management

Several hedge funds have recently bought and sold shares of the company. Versant Capital Management Inc boosted its holdings in Ares Management by 67.0% in the 4th quarter. Versant Capital Management Inc now owns 162 shares of the asset manager’s stock valued at $29,000 after purchasing an additional 65 shares during the period. Point72 DIFC Ltd purchased a new stake in shares of Ares Management in the third quarter worth $36,000. Eastern Bank bought a new stake in Ares Management during the third quarter valued at $39,000. GAMMA Investing LLC grew its position in Ares Management by 53.4% during the fourth quarter. GAMMA Investing LLC now owns 227 shares of the asset manager’s stock worth $40,000 after buying an additional 79 shares in the last quarter. Finally, Whittier Trust Co. of Nevada Inc. increased its stake in Ares Management by 21.0% in the 3rd quarter. Whittier Trust Co. of Nevada Inc. now owns 559 shares of the asset manager’s stock worth $87,000 after acquiring an additional 97 shares during the last quarter. Hedge funds and other institutional investors own 50.03% of the company’s stock.

Ares Management Company Profile

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.