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

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

Insider Buying and Selling

In related 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 price of $124.43 per share, with a total value of $59,726.40. Following the completion of the transaction, the director owned 29,734 shares of the company’s stock, valued at approximately $3,699,801.62. This trade represents a 1.64% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Ashish Bhutani purchased 10,000 shares of the business’s stock in a transaction on Friday, February 6th. The shares were bought at an average cost of $126.61 per share, for a total transaction of $1,266,100.00. Following the purchase, the director owned 34,071 shares of the company’s stock, valued at $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. 0.52% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Ares Management

A number of institutional investors have recently made changes to their positions in the business. Exchange Traded Concepts LLC grew its position in shares of Ares Management by 100.0% during the third quarter. Exchange Traded Concepts LLC now owns 190 shares of the asset manager’s stock worth $30,000 after buying an additional 95 shares in the last quarter. Elevation Point Wealth Partners LLC acquired a new stake in Ares Management in the second quarter valued at $35,000. Redmont Wealth Advisors LLC bought a new position in Ares Management during the 3rd quarter valued at $40,000. Atlantic Edge Private Wealth Management LLC acquired a new position in Ares Management during the 4th quarter worth $42,000. Finally, Elyxium Wealth LLC bought a new stake in shares of Ares Management in the 4th quarter worth about $42,000. 50.03% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on ARES. Oppenheimer reduced their price objective on Ares Management from $224.00 to $215.00 and set an “outperform” rating on the stock in a research note on Friday, February 6th. Barclays cut their price target on shares of Ares Management from $222.00 to $190.00 and set an “overweight” rating on the stock in a report on Friday, February 6th. Weiss Ratings reissued a “hold (c)” rating on shares of Ares Management in a research report on Monday, December 29th. Keefe, Bruyette & Woods raised their target price on shares of Ares Management from $188.00 to $189.00 and gave the company an “outperform” rating in a research note on Tuesday, November 4th. Finally, Wolfe Research set a $210.00 price target on shares of Ares Management and gave the stock an “outperform” rating in a research report on Wednesday, January 7th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $182.67.

Ares Management Stock Up 1.2%

Shares of ARES traded up $1.32 during mid-day trading on Monday, reaching $113.33. 3,317,004 shares of the stock traded hands, compared to its average volume of 4,856,297. The stock has a fifty day simple moving average of $149.53 and a 200 day simple moving average of $158.23. Ares Management has a 12-month low of $108.67 and a 12-month high of $195.26. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.86. The firm has a market cap of $37.04 billion, a price-to-earnings ratio of 67.06, a P/E/G ratio of 0.71 and a beta of 1.56.

Ares Management (NYSE:ARES) last released 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). Ares Management had a net margin of 9.41% and a return on equity of 19.04%. The firm had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.38 billion. During the same period in the previous year, the business posted $0.55 earnings per share. Sell-side analysts expect that Ares Management will post 5.28 EPS for the current fiscal year.

Ares Management Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be paid a dividend of $1.35 per share. This is a boost from Ares Management’s previous quarterly dividend of $0.84. The ex-dividend date is Tuesday, March 17th. This represents a $5.40 dividend on an annualized basis and a yield of 4.8%. Ares Management’s payout ratio is 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.