Stock Traders Buy Large Volume of Call Options on Ares Management (NYSE:ARES)

Ares Management Corp (NYSE:ARES) was the target of unusually large options trading on Thursday. Stock investors acquired 2,225 call options on the company. This is an increase of approximately 2,292% compared to the average daily volume of 93 call options.

In other Ares Management news, insider R. Kipp Deveer sold 36,487 shares of the business’s stock in a transaction dated Monday, June 24th. The stock was sold at an average price of $27.18, for a total transaction of $991,716.66. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Ares Management Llc sold 350,000 shares of the business’s stock in a transaction dated Wednesday, August 21st. The shares were sold at an average price of $0.10, for a total value of $35,000.00. Following the sale, the director now owns 86,857 shares of the company’s stock, valued at $8,685.70. The disclosure for this sale can be found here. In the last three months, insiders sold 6,292,805 shares of company stock valued at $37,507,784. 151.62% of the stock is owned by insiders.

Large investors have recently made changes to their positions in the stock. BNP Paribas Arbitrage SA bought a new position in shares of Ares Management during the 2nd quarter valued at approximately $51,000. AGF Investments LLC bought a new position in shares of Ares Management during the 2nd quarter valued at approximately $53,000. Quantamental Technologies LLC bought a new position in shares of Ares Management during the 2nd quarter valued at approximately $71,000. NumerixS Investment Technologies Inc bought a new position in shares of Ares Management during the 2nd quarter valued at approximately $131,000. Finally, Bank of Montreal Can bought a new position in shares of Ares Management during the 2nd quarter valued at approximately $140,000. Institutional investors own 64.86% of the company’s stock.

Shares of Ares Management stock traded down $0.20 during trading hours on Friday, reaching $30.20. 119,423 shares of the stock traded hands, compared to its average volume of 419,224. The company has a 50 day moving average price of $28.66 and a 200 day moving average price of $26.13. The firm has a market capitalization of $3.13 billion, a price-to-earnings ratio of 21.27, a P/E/G ratio of 1.60 and a beta of 1.45. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.67. Ares Management has a one year low of $16.18 and a one year high of $30.71.

Ares Management (NYSE:ARES) last announced its quarterly earnings data on Wednesday, July 31st. The asset manager reported $0.35 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.37 by ($0.02). The company had revenue of $384.80 million for the quarter, compared to the consensus estimate of $300.41 million. Ares Management had a net margin of 7.77% and a return on equity of 22.54%. The company’s revenue was up 88.4% compared to the same quarter last year. During the same quarter last year, the firm posted $0.34 earnings per share. Sell-side analysts anticipate that Ares Management will post 1.51 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 30th. Investors of record on Monday, September 16th will be paid a dividend of $0.32 per share. The ex-dividend date is Friday, September 13th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 4.24%. Ares Management’s dividend payout ratio (DPR) is presently 90.14%.

A number of equities research analysts have issued reports on the company. UBS Group boosted their price target on Ares Management from $28.00 to $32.00 and gave the company a “buy” rating in a research note on Thursday, August 1st. Barclays assumed coverage on Ares Management in a research note on Monday, August 5th. They set an “overweight” rating and a $33.00 price target for the company. TheStreet upgraded Ares Management from a “c+” rating to a “b” rating in a research note on Friday, August 16th. Wells Fargo & Co boosted their price target on Ares Management from $33.00 to $37.00 and gave the company an “outperform” rating in a research note on Thursday. Finally, Morgan Stanley boosted their price target on Ares Management from $26.00 to $28.00 and gave the company an “equal weight” rating in a research note on Friday, August 2nd. Two research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus target price of $29.38.

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.

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