RDST Capital LLC Makes New Investment in Ares Management Corporation $ARES

RDST Capital LLC acquired a new stake in Ares Management Corporation (NYSE:ARES) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 321,000 shares of the asset manager’s stock, valued at approximately $35,021,000. Ares Management accounts for approximately 3.4% of RDST Capital LLC’s holdings, making the stock its 16th largest holding.

A number of other hedge funds also recently made changes to their positions in the business. Vanguard Group Inc. boosted its stake in shares of 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. Norges Bank bought a new stake in Ares Management in the 4th quarter valued at $396,165,000. Geode Capital Management LLC raised its stake in 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 acquiring an additional 1,963,460 shares during the period. Massachusetts Financial Services Co. MA raised 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 valued at $922,196,000 after acquiring an additional 1,187,174 shares during the period. Finally, River Road Asset Management LLC lifted its holdings in Ares Management by 40,652.1% during the 4th quarter. River Road Asset Management LLC now owns 807,300 shares of the asset manager’s stock valued at $130,484,000 after purchasing an additional 805,319 shares during the last quarter. 50.03% of the stock is owned by institutional investors and hedge funds.

Ares Management Stock Performance

NYSE:ARES opened at $127.88 on Wednesday. The stock has a fifty day moving average price of $123.70 and a 200-day moving average price of $124.66. The company has a market cap of $42.18 billion, a price-to-earnings ratio of 59.48, a PEG ratio of 1.14 and a beta of 1.51. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.23 and a current ratio of 0.23. Ares Management Corporation has a fifty-two week low of $95.80 and a fifty-two week high of $195.26.

Ares Management (NYSE:ARES) last released 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 return on equity of 22.14% and a net margin of 10.54%.The company had revenue of $1.40 billion for the quarter, compared to analyst estimates of $1.28 billion. During the same period last year, the company posted $1.09 earnings per share. As a group, equities analysts anticipate that Ares Management Corporation will post 5.98 EPS for the current fiscal year.

Ares Management Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th were given a dividend of $1.35 per share. The ex-dividend date of this dividend was Tuesday, June 16th. This represents a $5.40 annualized dividend and a yield of 4.2%. Ares Management’s dividend payout ratio is currently 251.16%.

Analyst Ratings Changes

ARES has been the topic of several research reports. Citigroup reiterated an “outperform” rating on shares of Ares Management in a report on Thursday, July 9th. Keefe, Bruyette & Woods upgraded shares of Ares Management to a “hold” rating in a research note on Monday, July 20th. Oppenheimer reduced their target price on shares of Ares Management from $146.00 to $140.00 and set an “outperform” rating for the company in a report on Friday, July 17th. BMO Capital Markets upped their price target on shares of Ares Management from $125.00 to $128.00 and gave the company a “market perform” rating in a research note on Monday, July 13th. Finally, Morgan Stanley set a $160.00 price target on shares of Ares Management in a report on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $158.93.

Ares Management 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.