Ares Management (NYSE:ARES) Posts Earnings Results, Misses Expectations By $0.10 EPS

Ares Management (NYSE:ARES) released its earnings results on Friday. The asset manager reported $1.24 EPS for the quarter, missing analysts’ consensus estimates of $1.34 by ($0.10), Briefing.com reports. Ares Management had a return on equity of 19.04% and a net margin of 9.41%.During the same quarter in the prior year, the company earned $1.09 earnings per share.

Here are the key takeaways from Ares Management’s conference call:

• Strong Q1 financials — AUM rose 18% to $644 billion, fee-paying AUM +19% to $400 billion, management fees exceeded $1.0 billion for the first time, FRE +26% and realized income +24%, and the company raised its quarterly dividend to $1.35 (up >20% YoY).
• Record fundraising and ample dry powder — Ares raised $30 billion of gross capital in Q1 (its largest Q1, +46% YoY), reports >$158 billion of available capital and >$100 billion of private credit dry powder, and hit hard caps/strong closes across flagship funds (e.g., ASOF III, SDL III), supporting near-term deployment and fee growth.
• Deployment and pipeline are mixed but expanding — firm-wide Q1 deployments were >$32 billion (above last year) and management says the pipeline is at a record with strength in European and U.S. direct lending, alternative credit, infrastructure and secondaries, though U.S. direct lending activity was seasonally slower early in Q1.
• Credit fundamentals and performance remain healthy — management reported low non-accruals, ~10% EBITDA growth in direct lending, strong time-weighted returns across strategies (generally high single- to mid-teens), limited software exposure (~6% of AUM) and an independent review finding 86% of software exposure is low risk for AI disruption.
• Retail liquidity pressures are localized but a potential risk — some repurchase requests hit non-traded BDCs and smaller wealth investors in select regions; management estimates an extreme scenario of sustained 5% quarterly redemptions in two private credit wealth products would reduce FPAUM by ~1% annually, which they say would have minimal profit impact but remains a near-term retail-channel risk.

Ares Management Trading Up 1.6%

Shares of ARES stock traded up $1.86 during trading hours on Friday, reaching $119.26. 4,531,568 shares of the stock traded hands, compared to its average volume of 3,199,686. The business has a fifty day moving average price of $110.17 and a 200 day moving average price of $139.58. Ares Management has a 1-year low of $95.80 and a 1-year high of $195.26. The firm has a market capitalization of $39.29 billion, a PE ratio of 70.57, a PEG ratio of 1.06 and a beta of 1.50. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.86.

Ares Management Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th will be issued a dividend of $1.35 per share. The ex-dividend date is Tuesday, June 16th. This represents a $5.40 dividend on an annualized basis and a dividend yield of 4.5%. Ares Management’s payout ratio is currently 319.53%.

Insider Buying and Selling

In related news, Director Judy D. Olian acquired 480 shares of the stock in a transaction that occurred on Friday, February 20th. The shares were purchased at an average cost of $124.43 per share, with a total value of $59,726.40. Following the completion of the transaction, the director owned 29,734 shares of the company’s stock, valued at approximately $3,699,801.62. This trade represents a 1.64% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Ashish Bhutani acquired 10,000 shares of the stock in a transaction that occurred on Friday, February 6th. The shares were bought at an average cost of $126.61 per share, for a total transaction of $1,266,100.00. Following the completion of the transaction, the director directly owned 34,071 shares of the company’s stock, valued at $4,313,729.31. This represents a 41.54% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 36.86% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ARES. AQR Capital Management LLC grew its position in Ares Management by 116.7% during the first quarter. AQR Capital Management LLC now owns 10,360 shares of the asset manager’s stock valued at $1,519,000 after purchasing an additional 5,579 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Ares Management by 5.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,344 shares of the asset manager’s stock valued at $197,000 after purchasing an additional 70 shares in the last quarter. Empowered Funds LLC grew its position in Ares Management by 42.7% during the first quarter. Empowered Funds LLC now owns 6,197 shares of the asset manager’s stock valued at $909,000 after purchasing an additional 1,853 shares in the last quarter. Focus Partners Wealth grew its position in Ares Management by 15.3% during the first quarter. Focus Partners Wealth now owns 1,902 shares of the asset manager’s stock valued at $279,000 after purchasing an additional 252 shares in the last quarter. Finally, Geneos Wealth Management Inc. grew its position in Ares Management by 708.2% in the first quarter. Geneos Wealth Management Inc. now owns 493 shares of the asset manager’s stock worth $72,000 after acquiring an additional 432 shares in the last quarter. 50.03% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

ARES has been the topic of a number of research reports. Citizens Jmp dropped their target price on shares of Ares Management from $205.00 to $190.00 and set a “market outperform” rating on the stock in a report on Wednesday, April 22nd. Morgan Stanley cut their price target on shares of Ares Management from $178.00 to $163.00 and set an “equal weight” rating on the stock in a report on Tuesday, April 21st. Royal Bank Of Canada restated an “outperform” rating on shares of Ares Management in a report on Wednesday. Wolfe Research set a $210.00 price target on shares of Ares Management and gave the company an “outperform” rating in a report on Wednesday, January 7th. Finally, The Goldman Sachs Group cut their price target on shares of Ares Management from $165.00 to $131.00 and set a “buy” rating on the stock in a report on Tuesday, April 7th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Ares Management presently has a consensus rating of “Moderate Buy” and a consensus target price of $165.31.

Trending Headlines about Ares Management

Here are the key news stories impacting Ares Management this week:

• Positive Sentiment: Record fundraising and revenue boost confidence: Ares raised a first?quarter record ~$30 billion and reported higher revenue and GAAP net income ($142.6M), signaling strong investor demand and driving upward sentiment. Article Title
• Positive Sentiment: Assets under management and flows beat expectations: AUM and fundraising topped consensus, underpinning fee growth and recurring revenue potential for the firm. Article Title
• Positive Sentiment: Strong lending and deal activity: Ares closed ~$9.5B of U.S. direct lending in Q1 (?$53B TTM) and participated in large private?credit deals (e.g., $800M GoodLife financing with JPMorgan), supporting future fee and interest income. Article Title
• Positive Sentiment: Firm says balance sheet and investor demand are resilient: Management downplayed redemption fears and AI?related disruption, which helped calm market concerns around private credit. Article Title
• Neutral Sentiment: Corporate moves and strategy: Ares announced leadership/strategy changes (COO appointment, platform reshaping including BlueCove) that could affect execution but are longer?term in impact. Article Title
• Negative Sentiment: Quarterly EPS miss and rising expenses: Reported EPS ($1.24) missed consensus (~$1.34) and realized income metrics were pressured by higher expenses — a near?term profitability concern that analysts flagged. Article Title

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.