Hudson Bay Capital Management LP Makes New $10.62 Million Investment in Ares Management Co. (NYSE:ARES)

Hudson Bay Capital Management LP bought a new position in Ares Management Co. (NYSE:ARES) in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 60,000 shares of the asset manager’s stock, valued at approximately $10,622,000.

Other large investors have also bought and sold shares of the company. Raymond James Financial Inc. bought a new stake in shares of Ares Management during the 4th quarter valued at $335,858,000. Charles Schwab Investment Management Inc. raised its stake in shares of Ares Management by 4.7% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 715,258 shares of the asset manager’s stock valued at $126,622,000 after purchasing an additional 32,273 shares during the period. JPMorgan Chase & Co. raised its stake in shares of Ares Management by 9.0% during the 3rd quarter. JPMorgan Chase & Co. now owns 8,244,179 shares of the asset manager’s stock valued at $1,284,773,000 after purchasing an additional 679,462 shares during the period. Caldwell Investment Management Ltd. raised its stake in shares of Ares Management by 134.1% during the 4th quarter. Caldwell Investment Management Ltd. now owns 10,300 shares of the asset manager’s stock valued at $1,842,000 after purchasing an additional 5,900 shares during the period. Finally, Donoghue Forlines LLC bought a new stake in shares of Ares Management during the 4th quarter valued at $1,498,000. 50.03% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Ares Management news, CEO Michael J. Arougheti sold 110,845 shares of the stock in a transaction that occurred on Monday, March 24th. The stock was sold at an average price of $153.17, for a total value of $16,978,128.65. Following the completion of the sale, the chief executive officer now owns 1,400,000 shares in the company, valued at approximately $214,438,000. This trade represents a 7.34% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Chairman Bennett Rosenthal sold 69,809 shares of the stock in a transaction that occurred on Tuesday, March 4th. The stock was sold at an average price of $161.01, for a total value of $11,239,947.09. Following the completion of the sale, the chairman now owns 30,191 shares of the company’s stock, valued at approximately $4,861,052.91. This trade represents a 69.81% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 250,180 shares of company stock worth $39,411,066. 36.86% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

ARES has been the topic of a number of analyst reports. Barclays boosted their price objective on Ares Management from $142.00 to $182.00 and gave the company an “overweight” rating in a research note on Tuesday, May 6th. Oppenheimer upgraded Ares Management from a “market perform” rating to an “outperform” rating and set a $159.00 target price for the company in a research report on Wednesday, April 16th. TD Cowen reduced their target price on Ares Management from $216.00 to $161.00 and set a “buy” rating for the company in a research report on Wednesday, April 9th. Wolfe Research set a $193.00 target price on Ares Management and gave the stock an “outperform” rating in a research report on Tuesday, May 6th. Finally, Morgan Stanley reduced their target price on Ares Management from $197.00 to $152.00 and set an “equal weight” rating for the company in a research report on Monday, April 14th. One research analyst has rated the stock with a sell rating, three have given a hold rating and thirteen have issued a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $174.50.

Ares Management Trading Down 0.6%

NYSE ARES opened at $164.93 on Monday. Ares Management Co. has a 1-year low of $110.63 and a 1-year high of $200.49. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.53. The stock has a 50-day moving average of $146.41 and a 200-day moving average of $167.51. The firm has a market cap of $52.02 billion, a PE ratio of 81.25, a price-to-earnings-growth ratio of 1.28 and a beta of 1.40.

Ares Management (NYSE:ARES) last released its earnings results on Monday, May 5th. The asset manager reported $1.09 earnings per share for the quarter, beating analysts’ consensus estimates of $0.94 by $0.15. Ares Management had a return on equity of 16.64% and a net margin of 11.35%. The company had revenue of $951.96 million during the quarter, compared to analyst estimates of $914.00 million. During the same quarter in the previous year, the company posted $0.80 EPS. As a group, sell-side analysts forecast that Ares Management Co. will post 5.28 EPS for the current year.

Ares Management Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, June 30th. Stockholders of record on Monday, June 16th will be paid a $1.12 dividend. This represents a $4.48 dividend on an annualized basis and a dividend yield of 2.72%. The ex-dividend date of this dividend is Monday, June 16th. Ares Management’s dividend payout ratio (DPR) is presently 263.53%.

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.