Ares Management (NYSE:ARES) Stock Price Down 7.1% - Here's Why

Ares Management Co. (NYSE:ARES - Get Free Report) was down 7.1% on Tuesday . The company traded as low as $156.44 and last traded at $157.63. Approximately 914,425 shares changed hands during mid-day trading, a decline of 22% from the average daily volume of 1,166,112 shares. The stock had previously closed at $169.76.

Wall Street Analyst Weigh In

Several analysts recently issued reports on ARES shares. StockNews.com downgraded Ares Management from a "hold" rating to a "sell" rating in a research note on Wednesday, January 8th. JMP Securities reissued a "market perform" rating on shares of Ares Management in a report on Thursday, February 6th. Keefe, Bruyette & Woods upgraded shares of Ares Management from a "market perform" rating to an "outperform" rating and lifted their price target for the company from $166.00 to $202.00 in a report on Friday, December 20th. Barclays dropped their price objective on shares of Ares Management from $224.00 to $217.00 and set an "overweight" rating for the company in a report on Thursday, February 6th. Finally, Deutsche Bank Aktiengesellschaft lifted their target price on Ares Management from $146.00 to $150.00 and gave the stock a "hold" rating in a report on Monday, November 11th. One analyst has rated the stock with a sell rating, five have given a hold rating and eight have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $176.17.

Remove Ads

Ares Management Price Performance

The stock's 50-day simple moving average is $182.21 and its two-hundred day simple moving average is $170.27. The firm has a market cap of $44.45 billion, a P/E ratio of 69.42, a PEG ratio of 1.28 and a beta of 1.23. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.05 and a quick ratio of 1.05.

Ares Management (NYSE:ARES - Get Free Report) last announced its quarterly earnings data on Wednesday, February 5th. The asset manager reported $1.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.35 by ($0.12). Ares Management had a return on equity of 16.64% and a net margin of 11.35%. Equities research analysts forecast that Ares Management Co. 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 Monday, March 31st. Shareholders of record on Monday, March 17th will be paid a $1.12 dividend. This is a positive change from Ares Management's previous quarterly dividend of $0.93. The ex-dividend date is Monday, March 17th. This represents a $4.48 dividend on an annualized basis and a yield of 3.18%. Ares Management's dividend payout ratio (DPR) is presently 183.25%.

Insider Activity

In related news, insider Ryan Berry sold 14,357 shares of the business's stock in a transaction that occurred on Wednesday, December 11th. The stock was sold at an average price of $180.16, for a total value of $2,586,557.12. Following the completion of the sale, the insider now owns 233,214 shares in the company, valued at approximately $42,015,834.24. The trade was a 5.80 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider R. Kipp Deveer sold 78,933 shares of the stock in a transaction that occurred on Thursday, February 6th. The stock was sold at an average price of $190.02, for a total value of $14,998,848.66. Following the completion of the transaction, the insider now directly owns 1,150,000 shares in the company, valued at approximately $218,523,000. This trade represents a 6.42 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 232,625 shares of company stock valued at $40,018,344. 1.20% of the stock is currently owned by company insiders.

Institutional Trading of Ares Management

A number of institutional investors have recently modified their holdings of the company. Versant Capital Management Inc lifted its stake in shares of Ares Management by 67.0% during the fourth quarter. Versant Capital Management Inc now owns 162 shares of the asset manager's stock worth $29,000 after buying an additional 65 shares during the period. Transce3nd LLC purchased a new position in Ares Management in the 4th quarter worth $29,000. Johnson Financial Group Inc. lifted its position in Ares Management by 104.8% during the 4th quarter. Johnson Financial Group Inc. now owns 170 shares of the asset manager's stock worth $30,000 after acquiring an additional 87 shares during the period. Elequin Capital LP acquired a new stake in Ares Management during the 4th quarter worth about $33,000. Finally, Point72 DIFC Ltd purchased a new stake in Ares Management during the 3rd quarter valued at about $36,000. 50.03% of the stock is currently owned by institutional investors.

Ares Management Company Profile

Ares Management Corporation operates as an alternative asset manager in the United States, Europe, and Asia. The company's Tradable Credit Group segment manages various types of investment funds, such as commingled and separately managed accounts for institutional investors, and publicly traded vehicles and sub-advised funds for retail investors in the tradable and non-investment grade corporate credit markets.