Ares Management Sees Unusually High Options Volume (NYSE:ARES)

Ares Management Corporation (NYSE:ARES) was the target of some unusual options trading on Wednesday. Investors bought 33,280 put options on the stock. This is an increase of approximately 685% compared to the average volume of 4,241 put options.

Ares Management Trading Up 0.8%

ARES traded up $0.82 during mid-day trading on Wednesday, reaching $106.49. The stock had a trading volume of 2,305,472 shares, compared to its average volume of 3,755,705. The firm’s fifty day simple moving average is $136.24 and its two-hundred day simple moving average is $152.51. The stock has a market capitalization of $35.08 billion, a P/E ratio of 63.13, a P/E/G ratio of 0.74 and a beta of 1.55. Ares Management has a 52 week low of $95.80 and a 52 week high of $195.26. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.22 and a current ratio of 1.22.

Ares Management (NYSE:ARES) last released its earnings results on Thursday, February 5th. The asset manager reported $1.45 earnings per share for the quarter, missing analysts’ consensus estimates of $1.71 by ($0.26). The firm had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.38 billion. Ares Management had a return on equity of 19.04% and a net margin of 9.41%.During the same quarter in the previous year, the firm earned $0.55 EPS. On average, equities analysts predict that Ares Management will post 5.28 EPS for the current year.

Ares Management Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th will be given a dividend of $1.35 per share. The ex-dividend date is Tuesday, March 17th. This represents a $5.40 annualized dividend and a dividend yield of 5.1%. This is a positive change from Ares Management’s previous quarterly dividend of $0.84. Ares Management’s dividend payout ratio is presently 265.09%.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on ARES shares. TD Cowen reissued a “buy” rating on shares of Ares Management in a report on Wednesday, January 14th. Barclays decreased their price objective on shares of Ares Management from $222.00 to $190.00 and set an “overweight” rating on the stock in a research note on Friday, February 6th. Wolfe Research set a $210.00 target price on shares of Ares Management and gave the company an “outperform” rating in a research note on Wednesday, January 7th. Weiss Ratings reissued a “hold (c)” rating on shares of Ares Management in a report on Monday, December 29th. Finally, Raymond James Financial upgraded Ares Management from a “market perform” rating to a “strong-buy” rating and set a $157.00 price target on the stock in a research report on Monday, February 9th. 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. According to data from MarketBeat.com, Ares Management currently has a consensus rating of “Moderate Buy” and a consensus price target of $182.67.

Insider Buying and Selling at Ares Management

In related news, Director Judy D. Olian acquired 480 shares of the business’s stock in a transaction on Friday, February 20th. The stock was bought at an average cost of $124.43 per share, with a total value of $59,726.40. Following the completion of the acquisition, the director owned 29,734 shares in the company, valued at $3,699,801.62. The trade was a 1.64% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Ashish Bhutani bought 10,000 shares of Ares Management stock in a transaction dated Friday, February 6th. The stock was purchased at an average price of $126.61 per share, for a total transaction of $1,266,100.00. Following the purchase, the director directly owned 34,071 shares in the company, 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. 0.52% of the stock is owned by insiders.

Hedge Funds Weigh In On Ares Management

Large investors have recently bought and sold shares of the business. Vanguard Group Inc. grew its holdings in Ares Management by 20.2% during the 4th quarter. Vanguard Group Inc. now owns 26,050,425 shares of the asset manager’s stock worth $4,210,530,000 after acquiring an additional 4,373,955 shares during the period. Massachusetts Financial Services Co. MA lifted its stake in shares of Ares Management by 26.3% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 5,705,599 shares of the asset manager’s stock valued at $922,196,000 after purchasing an additional 1,187,174 shares during the period. Geode Capital Management LLC lifted its stake in shares of Ares Management by 55.7% in the 4th quarter. Geode Capital Management LLC now owns 5,489,004 shares of the asset manager’s stock valued at $883,716,000 after purchasing an additional 1,963,460 shares during the period. Capital International Investors boosted its position in shares of Ares Management by 0.3% in the 4th quarter. Capital International Investors now owns 4,257,710 shares of the asset manager’s stock worth $688,176,000 after purchasing an additional 14,516 shares during the last quarter. Finally, Principal Financial Group Inc. boosted its position in shares of Ares Management by 8.6% in the 4th quarter. Principal Financial Group Inc. now owns 3,839,693 shares of the asset manager’s stock worth $620,616,000 after purchasing an additional 304,920 shares during the last quarter. 50.03% of the stock is currently owned by institutional investors and hedge funds.

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.