Ares Management Corporation (NYSE:ARES) Increases Dividend to $1.35 Per Share

Ares Management Corporation (NYSE:ARES) declared a quarterly dividend on Thursday, February 5th. Stockholders of record on Tuesday, March 17th will be given a dividend of 1.35 per share by the asset manager on Tuesday, March 31st. This represents a c) dividend on an annualized basis and a dividend yield of 4.4%. The ex-dividend date of this dividend is Tuesday, March 17th. This is a 60.0% increase from Ares Management’s previous quarterly dividend of $0.84.

Ares Management has increased its dividend by an average of 0.2%annually over the last three years and has increased its dividend every year for the last 7 years. Ares Management has a dividend payout ratio of 68.9% meaning its dividend is sufficiently covered by earnings. Analysts expect Ares Management to earn $6.65 per share next year, which means the company should continue to be able to cover its $4.48 annual dividend with an expected future payout ratio of 67.4%.

Ares Management Stock Performance

Ares Management stock traded down $15.52 during midday trading on Thursday, hitting $121.70. The stock had a trading volume of 10,939,019 shares, compared to its average volume of 3,062,550. Ares Management has a 52-week low of $110.63 and a 52-week high of $195.26. The company has a market capitalization of $39.78 billion, a PE ratio of 52.23, a P/E/G ratio of 0.76 and a beta of 1.52. The firm’s fifty day moving average is $163.50 and its two-hundred day moving average is $165.65. The company has a current ratio of 0.22, a quick ratio of 0.22 and a debt-to-equity ratio of 0.62.

Ares Management (NYSE:ARES) last posted its quarterly 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 during the quarter, compared to the consensus estimate of $1.38 billion. Ares Management had a return on equity of 16.33% and a net margin of 11.72%.During the same quarter in the previous year, the company earned $0.55 earnings per share. On average, research analysts forecast that Ares Management will post 5.28 EPS for the current year.

Insider Buying and Selling

In other Ares Management news, CEO Michael J. Arougheti sold 186,197 shares of the firm’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $152.75, for a total transaction of $28,441,591.75. Following the completion of the transaction, the chief executive officer owned 290,997 shares in the company, valued at $44,449,791.75. This trade represents a 39.02% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Insiders sold 590,000 shares of company stock worth $90,653,808 over the last three months. 36.86% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of ARES. Vanguard Group Inc. increased its position in Ares Management by 20.2% in the fourth quarter. Vanguard Group Inc. now owns 26,050,425 shares of the asset manager’s stock worth $4,210,530,000 after purchasing an additional 4,373,955 shares during the last quarter. Norges Bank bought a new position in Ares Management during the second quarter valued at $328,910,000. Massachusetts Financial Services Co. MA grew 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 worth $922,196,000 after buying an additional 1,187,174 shares in the last quarter. Winslow Capital Management LLC bought a new stake in shares of Ares Management in the 2nd quarter worth about $161,774,000. Finally, Marshall Wace LLP raised its position in shares of Ares Management by 487.4% during the 3rd quarter. Marshall Wace LLP now owns 912,656 shares of the asset manager’s stock valued at $145,925,000 after buying an additional 757,293 shares in the last quarter. 50.03% of the stock is currently owned by institutional investors.

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.