Ares Management Corporation (NYSE:ARES) Sees Large Increase in Short Interest

Ares Management Corporation (NYSE:ARES) was the target of a large growth in short interest in February. As of February 13th, there was short interest totaling 10,627,353 shares, a growth of 31.0% from the January 29th total of 8,110,274 shares. Approximately 3.3% of the shares of the stock are sold short. Based on an average daily trading volume, of 5,534,233 shares, the days-to-cover ratio is presently 1.9 days. Based on an average daily trading volume, of 5,534,233 shares, the days-to-cover ratio is presently 1.9 days. Approximately 3.3% of the shares of the stock are sold short.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on ARES shares. Wall Street Zen cut shares of Ares Management from a “hold” rating to a “sell” rating in a research report on Saturday. Keefe, Bruyette & Woods upped their price objective on Ares Management from $188.00 to $189.00 and gave the company an “outperform” rating in a research report on Tuesday, November 4th. Royal Bank Of Canada lowered their price objective on Ares Management from $180.00 to $173.00 and set an “outperform” rating for the company in a research note on Tuesday, February 24th. The Goldman Sachs Group cut their target price on Ares Management from $189.00 to $165.00 and set a “buy” rating on the stock in a research report on Friday, February 6th. Finally, Morgan Stanley set a $178.00 price target on Ares Management in a research report on Tuesday, January 27th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $182.67.

Insider Buying and Selling

In other news, Director Ashish Bhutani acquired 10,000 shares of the firm’s stock in a transaction dated Friday, February 6th. The shares were acquired at an average cost of $126.61 per share, with a total value of $1,266,100.00. Following the acquisition, the director directly owned 34,071 shares of the company’s stock, valued at approximately $4,313,729.31. The trade was a 41.54% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Judy D. Olian bought 480 shares of the business’s stock in a transaction that occurred on Friday, February 20th. The stock was acquired at an average cost of $124.43 per share, with a total value of $59,726.40. Following the completion of the acquisition, the director owned 29,734 shares of the company’s stock, valued at $3,699,801.62. This represents a 1.64% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 0.52% of the company’s stock.

Institutional Trading of Ares Management

A number of hedge funds have recently bought and sold shares of ARES. Exchange Traded Concepts LLC raised its position in shares of Ares Management by 100.0% in the 3rd quarter. Exchange Traded Concepts LLC now owns 190 shares of the asset manager’s stock worth $30,000 after acquiring an additional 95 shares in the last quarter. Elevation Point Wealth Partners LLC purchased a new position in Ares Management in the second quarter valued at about $35,000. Redmont Wealth Advisors LLC bought a new position in Ares Management in the third quarter worth about $40,000. Atlantic Edge Private Wealth Management LLC bought a new position in Ares Management in the fourth quarter worth about $42,000. Finally, Elyxium Wealth LLC purchased a new stake in shares of Ares Management during the fourth quarter valued at about $42,000. Hedge funds and other institutional investors own 50.03% of the company’s stock.

Ares Management Trading Up 3.1%

ARES stock traded up $3.48 during trading on Wednesday, hitting $116.13. The company had a trading volume of 2,949,801 shares, compared to its average volume of 3,547,542. Ares Management has a 52-week low of $106.02 and a 52-week high of $195.26. The company has a 50 day simple moving average of $147.36 and a 200-day simple moving average of $157.41. The firm has a market capitalization of $37.96 billion, a P/E ratio of 68.72, a PEG ratio of 0.71 and a beta of 1.55. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.86.

Ares Management (NYSE:ARES) last issued its earnings results on Thursday, February 5th. The asset manager reported $1.45 EPS for the quarter, missing analysts’ consensus estimates 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 during the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter in the prior year, the company earned $0.55 earnings per share. As a group, research analysts forecast that Ares Management will post 5.28 earnings per share for the current fiscal year.

Ares Management Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be issued a dividend of $1.35 per share. This represents a $5.40 annualized dividend and a yield of 4.6%. The ex-dividend date is Tuesday, March 17th. This is a positive change from Ares Management’s previous quarterly dividend of $0.84. Ares Management’s dividend payout ratio (DPR) is currently 265.09%.

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.