Ares Management (NYSE:ARES) Downgraded to Strong Sell Rating by Zacks Research

Zacks Research lowered shares of Ares Management (NYSE:ARES) from a hold rating to a strong sell rating in a report published on Monday,Zacks.com reports.

Several other equities research analysts have also commented on ARES. TD Cowen reiterated a “buy” rating on shares of Ares Management in a research note on Wednesday, January 14th. Deutsche Bank Aktiengesellschaft raised shares of Ares Management from a “hold” rating to a “buy” rating and lowered their price objective for the stock from $182.00 to $155.00 in a research report on Friday, February 6th. Morgan Stanley set a $178.00 price objective on shares of Ares Management in a research report on Tuesday, January 27th. UBS Group set a $148.00 price objective on shares of Ares Management in a research report on Friday, February 20th. Finally, Royal Bank Of Canada lowered 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, February 24th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $177.47.

Ares Management Price Performance

Shares of NYSE:ARES opened at $102.09 on Monday. The company’s fifty day moving average price is $118.20 and its 200 day moving average price is $144.70. Ares Management has a 12 month low of $95.80 and a 12 month high of $195.26. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.22 and a quick ratio of 1.22. The firm has a market capitalization of $33.64 billion, a P/E ratio of 60.41, a P/E/G ratio of 0.76 and a beta of 1.52.

Ares Management (NYSE:ARES) last announced its quarterly earnings results on Thursday, February 5th. The asset manager reported $1.45 EPS for the quarter, missing the consensus estimate of $1.71 by ($0.26). Ares Management had a return on equity of 19.04% and a net margin of 9.41%.The company had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.38 billion. During the same quarter in the prior year, the business earned $0.55 earnings per share. As a group, sell-side analysts predict that Ares Management will post 5.28 earnings per share for the current fiscal year.

Ares Management Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th were paid a dividend of $1.35 per share. This represents a $5.40 dividend on an annualized basis and a dividend yield of 5.3%. This is a positive change from Ares Management’s previous quarterly dividend of $0.84. The ex-dividend date was Tuesday, March 17th. Ares Management’s dividend payout ratio (DPR) is presently 319.53%.

Insider Transactions at Ares Management

In other news, Director Ashish Bhutani purchased 10,000 shares of the company’s stock in a transaction dated Friday, February 6th. The shares were acquired at an average cost of $126.61 per share, for a total transaction of $1,266,100.00. Following the completion of the purchase, the director directly owned 34,071 shares in the company, valued at $4,313,729.31. The trade was a 41.54% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, 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, for a total transaction of $59,726.40. Following the completion of the purchase, 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 ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 36.86% of the company’s stock.

Institutional Trading of Ares Management

Institutional investors have recently added to or reduced their stakes in the stock. Exchange Traded Concepts LLC boosted its holdings in Ares Management by 100.0% during 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 in the last quarter. Osbon Capital Management LLC purchased a new stake in Ares Management during the fourth quarter worth about $32,000. Redmont Wealth Advisors LLC purchased a new stake in Ares Management during the third quarter worth about $40,000. Atlantic Edge Private Wealth Management LLC purchased a new stake in Ares Management during the fourth quarter worth about $42,000. Finally, Elyxium Wealth LLC purchased a new stake in Ares Management during the fourth quarter worth about $42,000. Hedge funds and other institutional investors own 50.03% of the company’s stock.

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.