Ares Management (NYSE:ARES) Shares Down 10.2% After Earnings Miss

Shares of Ares Management Corporation (NYSE:ARES) fell 10.2% during trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $121.92 and last traded at $123.2250. 1,738,189 shares were traded during mid-day trading, a decline of 35% from the average session volume of 2,655,325 shares. The stock had previously closed at $137.22.

The asset manager reported $1.45 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.72 by ($0.27). The company had revenue of $1.50 billion during the quarter, compared to analysts’ expectations of $1.38 billion. Ares Management had a net margin of 11.72% and a return on equity of 16.33%. During the same period last year, the business posted $0.55 earnings per share.

Ares Management News Roundup

Here are the key news stories impacting Ares Management this week:

• Positive Sentiment: Record U.S. direct lending origination — Ares said its credit funds closed roughly $19.4 billion of new U.S. direct lending commitments in Q4 and about $55.0 billion for the full year, underscoring franchise growth and deal flow strength. Ares Announces Record Fourth Quarter and Full-Year 2025 U.S. Direct Lending Origination Activity
• Positive Sentiment: Revenue beat — Ares reported $1.50 billion of revenue for the quarter versus analyst estimates near $1.38 billion, showing top‑line momentum even as fee mix and earnings patterns evolve. Ares Management Corporation Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Analyst sentiment remains constructive — Brokerages show a consensus “Moderate Buy” rating, indicating analysts still see longer‑term upside despite the quarter’s mixed signals. Ares Management Given Consensus Recommendation of “Moderate Buy”
• Neutral Sentiment: Earnings came amid broader private‑credit attention — Pre‑earnings coverage emphasized the private credit boom and sector dynamics, which frame investor expectations for fees, deployment and credit performance. Ares Management set to report earnings amid private credit boom
• Negative Sentiment: EPS missed estimates — Ares reported $1.45 EPS for the quarter, below the Zacks/Street consensus (~$1.71–$1.72), which is the primary trigger for the selloff as investors punish the earnings shortfall. Ares Management Q4 Earnings and Revenues Miss Estimates
• Negative Sentiment: Low GAAP net income / EPS — GAAP net income attributable to Ares was $54.2 million (GAAP EPS $0.08), highlighting differences between distributable/fee income and GAAP results that may raise near‑term profitability questions for some investors. Ares Management Corporation Reports Fourth Quarter and Full Year 2025 Results

Analyst Ratings Changes

Several equities analysts have recently issued reports on ARES shares. UBS Group reduced their price target on shares of Ares Management from $201.00 to $198.00 and set a “neutral” rating for the company in a report on Tuesday, January 13th. Weiss Ratings reissued a “hold (c)” rating on shares of Ares Management in a report on Monday, December 29th. Wolfe Research set a $210.00 price target on shares of Ares Management and gave the stock an “outperform” rating in a research note on Wednesday, January 7th. Morgan Stanley set a $178.00 price target on Ares Management in a research note on Tuesday, January 27th. Finally, Keefe, Bruyette & Woods boosted their price objective on Ares Management from $188.00 to $189.00 and gave the stock an “outperform” rating in a research note on Tuesday, November 4th. Twelve research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $194.79.

Insiders Place Their Bets

In related news, CEO Michael J. Arougheti sold 186,197 shares of Ares Management stock in a transaction 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 sale, the chief executive officer owned 290,997 shares of the company’s stock, valued at approximately $44,449,791.75. This trade represents a 39.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders sold 590,000 shares of company stock worth $90,653,808 over the last quarter. 36.86% of the stock is currently owned by insiders.

Institutional Trading of Ares Management

A number of institutional investors and hedge funds have recently modified their holdings of ARES. Nemes Rush Group LLC increased its holdings in Ares Management by 3.1% in the 2nd quarter. Nemes Rush Group LLC now owns 1,745 shares of the asset manager’s stock valued at $302,000 after buying an additional 52 shares during the period. New York Life Investment Management LLC increased its holdings in shares of Ares Management by 2.0% during the second quarter. New York Life Investment Management LLC now owns 3,083 shares of the asset manager’s stock worth $534,000 after buying an additional 59 shares in the last quarter. First Horizon Advisors Inc. raised its position in Ares Management by 10.3% in the 2nd quarter. First Horizon Advisors Inc. now owns 630 shares of the asset manager’s stock valued at $109,000 after purchasing an additional 59 shares during the last quarter. MGO One Seven LLC increased its position in Ares Management by 1.3% in the second quarter. MGO One Seven LLC now owns 4,576 shares of the asset manager’s stock worth $793,000 after purchasing an additional 60 shares during the period. Finally, Kingsview Wealth Management LLC grew its stake in shares of Ares Management by 4.0% in the second quarter. Kingsview Wealth Management LLC now owns 1,625 shares of the asset manager’s stock valued at $281,000 after buying an additional 63 shares in the last quarter. 50.03% of the stock is currently owned by institutional investors and hedge funds.

Ares Management Trading Down 9.0%

The company has a market cap of $40.81 billion, a P/E ratio of 53.62, a P/E/G ratio of 0.76 and a beta of 1.52. The business’s 50-day moving average price is $164.16 and its 200 day moving average price is $165.96. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.22 and a current ratio of 0.22.

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.