Ares Management (NYSE:ARES) Downgraded to Sell Rating by Wall Street Zen

Wall Street Zen downgraded shares of Ares Management (NYSE:ARES) from a hold rating to a sell rating in a research report released on Saturday morning.

A number of other research analysts have also recently issued reports on ARES. Oppenheimer lowered their price target on shares of Ares Management from $224.00 to $215.00 and set an “outperform” rating for the company in a research report on Friday, February 6th. Raymond James Financial raised shares of Ares Management from a “market perform” rating to a “strong-buy” rating and set a $157.00 target price for the company in a research note on Monday, February 9th. Royal Bank Of Canada dropped their price target on Ares Management from $180.00 to $173.00 and set an “outperform” rating on the stock in a research report on Tuesday. Barclays cut their price target on Ares Management from $222.00 to $190.00 and set an “overweight” rating on the stock in a research note on Friday, February 6th. Finally, Wolfe Research set a $210.00 price objective on Ares Management and gave the company an “outperform” rating in a research note on Wednesday, January 7th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Ares Management presently has an average rating of “Moderate Buy” and a consensus target price of $182.67.

Ares Management Stock Down 5.2%

Shares of NYSE:ARES opened at $111.88 on Friday. The firm has a market capitalization of $36.57 billion, a P/E ratio of 66.20, a P/E/G ratio of 0.71 and a beta of 1.52. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.22 and a current ratio of 0.22. The stock has a 50 day moving average price of $150.67 and a 200-day moving average price of $159.00. Ares Management has a 52-week low of $108.67 and a 52-week high of $195.26.

Ares Management (NYSE:ARES) last issued its quarterly earnings results on Thursday, February 5th. The asset manager reported $1.45 earnings per share for the quarter, missing the consensus estimate of $1.71 by ($0.26). The firm had revenue of $1.50 billion during the quarter, compared to analysts’ expectations of $1.38 billion. Ares Management had a return on equity of 19.26% and a net margin of 9.41%.During the same period in the previous year, the company earned $0.55 earnings per share. As a group, equities research analysts anticipate that Ares Management will post 5.28 EPS for the current fiscal year.

Ares Management Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th will be given a dividend of $1.35 per share. This represents a $5.40 annualized dividend and a dividend yield of 4.8%. This is a boost from Ares Management’s previous quarterly dividend of $0.84. The ex-dividend date of this dividend is Tuesday, March 17th. Ares Management’s payout ratio is 265.09%.

Insider Buying and Selling

In related news, Director Judy D. Olian purchased 480 shares of the company’s stock in a transaction dated Friday, February 20th. The shares were purchased at an average price of $124.43 per share, with a total value of $59,726.40. Following the acquisition, the director directly owned 29,734 shares in the company, valued at $3,699,801.62. The trade was a 1.64% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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. Additional details regarding this sale are available in the official SEC disclosure. 36.86% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Ares Management

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