Ares Management (NYSE:ARES) Hits New 52-Week Low – Should You Sell?

Ares Management Corporation (NYSE:ARES) shares hit a new 52-week low during mid-day trading on Friday . The stock traded as low as $110.59 and last traded at $111.3380, with a volume of 1172228 shares trading hands. The stock had previously closed at $118.08.

Wall Street Analyst Weigh In

ARES has been the topic of several recent research reports. Royal Bank Of Canada cut their price objective 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. Deutsche Bank Aktiengesellschaft upgraded shares of Ares Management from a “hold” rating to a “buy” rating and dropped their price target for the company from $182.00 to $155.00 in a research note on Friday, February 6th. The Goldman Sachs Group reduced their price objective on Ares Management from $189.00 to $165.00 and set a “buy” rating for the company in a research report on Friday, February 6th. Weiss Ratings reissued a “hold (c)” rating on shares of Ares Management in a report on Monday, December 29th. Finally, Raymond James Financial raised Ares Management from a “market perform” rating to a “strong-buy” rating and set a $157.00 target price on the stock in a research note on Monday, February 9th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, Ares Management has an average rating of “Moderate Buy” and a consensus target price of $182.67.

Ares Management Price Performance

The business has a 50-day simple moving average of $151.75 and a two-hundred day simple moving average of $159.75. The company has a quick ratio of 0.22, a current ratio of 0.22 and a debt-to-equity ratio of 0.62. The stock has a market capitalization of $36.06 billion, a price-to-earnings ratio of 65.47, a P/E/G ratio of 0.72 and a beta of 1.52.

Ares Management (NYSE:ARES) last issued its quarterly earnings results on Thursday, February 5th. The asset manager reported $1.45 earnings per share (EPS) for the quarter, missing the consensus estimate 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 net margin of 9.41% and a return on equity of 19.26%. During the same quarter last year, the business posted $0.55 earnings per share. As a group, research analysts predict that Ares Management Corporation will post 5.28 earnings per share for the current fiscal year.

Ares Management Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be given a $1.35 dividend. This represents a $5.40 annualized dividend and a yield of 4.9%. This is a boost from Ares Management’s previous quarterly dividend of $0.84. The ex-dividend date is Tuesday, March 17th. Ares Management’s dividend payout ratio (DPR) is presently 319.53%.

Insider Activity

In other Ares Management news, Director Ashish Bhutani bought 10,000 shares of the business’s stock in a transaction that occurred on Friday, February 6th. The stock was acquired at an average cost of $126.61 per share, with a total value of $1,266,100.00. Following the completion of the purchase, the director directly owned 34,071 shares in the company, valued at approximately $4,313,729.31. This trade represents a 41.54% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this link. Also, CEO Michael J. Arougheti sold 56,257 shares of Ares Management stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $157.26, for a total transaction of $8,846,975.82. The SEC filing for this sale provides additional information. Insiders own 36.86% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Exchange Traded Concepts LLC boosted its position in shares of Ares Management by 100.0% in the third quarter. Exchange Traded Concepts LLC now owns 190 shares of the asset manager’s stock worth $30,000 after buying an additional 95 shares during the period. Elevation Point Wealth Partners LLC purchased a new stake in Ares Management in the 2nd quarter worth about $35,000. Redmont Wealth Advisors LLC acquired a new stake in Ares Management during the 3rd quarter worth about $40,000. Atlantic Edge Private Wealth Management LLC purchased a new position in Ares Management during the 4th quarter valued at about $42,000. Finally, Elyxium Wealth LLC acquired a new position in shares of Ares Management in the 4th quarter valued at about $42,000. 50.03% of the stock is owned by hedge funds and other institutional investors.

About Ares Management

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.