Ares Management Sees Unusually High Options Volume (NYSE:ARES)

Ares Management Corporation (NYSE:ARES) saw unusually large options trading activity on Tuesday. Traders bought 6,909 call options on the stock. This is an increase of 70% compared to the average daily volume of 4,059 call options.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Ares Management

A number of large investors have recently modified their holdings of the business. Osbon Capital Management LLC purchased a new position in shares of Ares Management in the 4th quarter valued at approximately $32,000. Hsbc Holdings PLC raised its holdings in shares of Ares Management by 194.4% in the fourth quarter. Hsbc Holdings PLC now owns 395,965 shares of the asset manager’s stock worth $64,186,000 after buying an additional 261,474 shares during the last quarter. Alpine Global Management LLC lifted its stake in shares of Ares Management by 2,802.5% during the fourth quarter. Alpine Global Management LLC now owns 68,469 shares of the asset manager’s stock worth $11,067,000 after buying an additional 66,110 shares during the period. River Road Asset Management LLC grew its holdings in shares of Ares Management by 40,652.1% during the fourth quarter. River Road Asset Management LLC now owns 807,300 shares of the asset manager’s stock valued at $130,484,000 after buying an additional 805,319 shares during the last quarter. Finally, Pacer Advisors Inc. increased its position in shares of Ares Management by 269,116.7% in the 4th quarter. Pacer Advisors Inc. now owns 16,153 shares of the asset manager’s stock valued at $2,611,000 after acquiring an additional 16,147 shares during the period. Hedge funds and other institutional investors own 50.03% of the company’s stock.

Ares Management Stock Up 3.1%

Ares Management stock traded up $3.08 during trading hours on Tuesday, reaching $103.59. The stock had a trading volume of 1,446,881 shares, compared to its average volume of 3,702,852. The company has a market cap of $34.13 billion, a price-to-earnings ratio of 61.34, a PEG ratio of 0.75 and a beta of 1.56. The business’s 50 day moving average price is $137.65 and its 200-day moving average price is $153.03. Ares Management has a 52 week low of $95.80 and a 52 week high of $195.26. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.22 and a quick ratio of 1.22.

Ares Management (NYSE:ARES) last issued its quarterly earnings data on Thursday, February 5th. The asset manager reported $1.45 earnings per share (EPS) 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 analysts’ expectations of $1.38 billion. Ares Management had a return on equity of 19.04% and a net margin of 9.41%.During the same period in the previous year, the firm earned $0.55 EPS. Sell-side analysts anticipate that Ares Management will post 5.28 EPS for the current year.

Ares Management Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th will be given a dividend of $1.35 per share. The ex-dividend date of this dividend is Tuesday, March 17th. This represents a $5.40 annualized dividend and a yield of 5.2%. This is an increase from Ares Management’s previous quarterly dividend of $0.84. Ares Management’s dividend payout ratio is currently 319.53%.

Analysts Set New Price Targets

ARES has been the subject of a number of research reports. Oppenheimer lowered their price target on Ares Management from $224.00 to $215.00 and set an “outperform” rating for the company in a report on Friday, February 6th. Weiss Ratings reiterated a “hold (c)” rating on shares of Ares Management in a report on Monday, December 29th. Morgan Stanley set a $178.00 price target on Ares Management in a research note on Tuesday, January 27th. Wall Street Zen lowered shares of Ares Management from a “hold” rating to a “sell” rating in a research note on Saturday, February 28th. Finally, Royal Bank Of Canada dropped their target price on shares of Ares Management from $180.00 to $173.00 and set an “outperform” rating on the stock in a report on Tuesday, February 24th. One 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. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $182.67.

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.