Ares Management (NYSE:ARES) Shares Gap Down – Should You Sell?

Ares Management Corporation (NYSE:ARES) shares gapped down prior to trading on Wednesday . The stock had previously closed at $128.28, but opened at $121.10. Ares Management shares last traded at $121.71, with a volume of 416,282 shares traded.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on ARES. JPMorgan Chase & Co. lowered their price objective on Ares Management from $188.00 to $144.00 and set an “overweight” rating on the stock in a research report on Tuesday, April 28th. UBS Group set a $148.00 target price on shares of Ares Management in a report on Friday, February 20th. Morgan Stanley decreased their target price on shares of Ares Management from $178.00 to $163.00 and set an “equal weight” rating on the stock in a research note on Tuesday, April 21st. Wall Street Zen lowered shares of Ares Management from a “hold” rating to a “sell” rating in a research report on Saturday, February 28th. Finally, BMO Capital Markets reduced their price objective on shares of Ares Management from $140.00 to $112.00 and set a “market perform” rating for the company in a research note on Tuesday, March 24th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, Ares Management presently has an average rating of “Moderate Buy” and a consensus target price of $162.56.

Ares Management Stock Performance

The company has a quick ratio of 0.23, a current ratio of 0.23 and a debt-to-equity ratio of 0.96. The business has a 50 day moving average price of $115.85 and a two-hundred day moving average price of $135.92. The stock has a market cap of $40.50 billion, a P/E ratio of 57.11, a price-to-earnings-growth ratio of 1.13 and a beta of 1.51.

Ares Management (NYSE:ARES) last issued its earnings results on Friday, May 1st. The asset manager reported $1.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.32 by ($0.08). Ares Management had a net margin of 10.54% and a return on equity of 22.14%. The business had revenue of $1.40 billion for the quarter, compared to the consensus estimate of $1.28 billion. During the same period last year, the business posted $1.09 EPS. On average, sell-side analysts forecast that Ares Management Corporation will post 6.06 earnings per share for the current fiscal year.

Ares Management Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th will be given a dividend of $1.35 per share. The ex-dividend date is Tuesday, June 16th. This represents a $5.40 annualized dividend and a dividend yield of 4.4%. Ares Management’s dividend payout ratio (DPR) is presently 251.16%.

Hedge Funds Weigh In On Ares Management

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. grew its stake in Ares Management by 20.2% during the fourth quarter. Vanguard Group Inc. now owns 26,050,425 shares of the asset manager’s stock valued at $4,210,530,000 after acquiring an additional 4,373,955 shares in the last quarter. Massachusetts Financial Services Co. MA lifted its stake in 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 worth $922,196,000 after purchasing an additional 1,187,174 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of Ares Management by 55.7% during 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 last quarter. Capital International Investors boosted its holdings in shares of Ares Management by 0.3% during the 4th quarter. Capital International Investors now owns 4,257,710 shares of the asset manager’s stock valued at $688,176,000 after purchasing an additional 14,516 shares during the last quarter. Finally, Principal Financial Group Inc. grew its position in shares of Ares Management by 4.4% during the first quarter. Principal Financial Group Inc. now owns 4,009,291 shares of the asset manager’s stock valued at $437,417,000 after purchasing an additional 169,598 shares in the last quarter. Institutional investors own 50.03% of the company’s stock.

Ares Management Company Profile

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.