Ares Management (NYSE:ARES) Sees Unusually-High Trading Volume – Here’s Why

Shares of Ares Management Corporation (NYSE:ARES) saw unusually-strong trading volume on Wednesday . Approximately 6,081,658 shares traded hands during trading, an increase of 243% from the previous session’s volume of 1,774,174 shares.The stock last traded at $180.2750 and had previously closed at $176.20.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the company. Morgan Stanley dropped their target price on Ares Management from $178.00 to $175.00 and set an “equal weight” rating for the company in a research report on Tuesday, October 21st. Barclays lowered their price objective on shares of Ares Management from $200.00 to $187.00 and set an “overweight” rating for the company in a report on Wednesday, October 8th. Keefe, Bruyette & Woods increased their target price on shares of Ares Management from $188.00 to $189.00 and gave the company an “outperform” rating in a report on Tuesday, November 4th. Oppenheimer set a $190.00 target price on shares of Ares Management and gave the stock an “outperform” rating in a research report on Tuesday, November 4th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Ares Management in a research note on Monday. Thirteen equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $187.46.

Ares Management Stock Performance

The firm has a market cap of $58.29 billion, a P/E ratio of 76.54, a price-to-earnings-growth ratio of 1.27 and a beta of 1.53. The business’s fifty day simple moving average is $151.56 and its 200-day simple moving average is $167.96. The company has a current ratio of 0.22, a quick ratio of 0.22 and a debt-to-equity ratio of 0.62.

Ares Management (NYSE:ARES) last posted its earnings results on Friday, October 31st. The asset manager reported $1.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.14 by $0.05. The company had revenue of $1.66 billion for the quarter, compared to analysts’ expectations of $1.03 billion. Ares Management had a return on equity of 16.33% and a net margin of 11.72%.During the same period last year, the firm earned $0.55 earnings per share. As a group, sell-side analysts expect that Ares Management Corporation will post 5.28 earnings per share for the current year.

Ares Management Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, December 31st. Investors of record on Wednesday, December 17th will be paid a $0.8438 dividend. The ex-dividend date of this dividend is Wednesday, December 17th. This represents a $3.38 dividend on an annualized basis and a yield of 1.9%. Ares Management’s dividend payout ratio (DPR) is presently 192.27%.

Insider Transactions at Ares Management

In other Ares Management news, CEO Michael J. Arougheti sold 186,197 shares of the business’s stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $152.75, for a total transaction of $28,441,591.75. Following the transaction, the chief executive officer directly owned 290,997 shares of the company’s stock, valued at approximately $44,449,791.75. The trade was a 39.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last quarter, insiders have sold 590,000 shares of company stock worth $90,653,808. 0.52% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Ares Management

A number of institutional investors have recently bought and sold shares of the stock. Exchange Traded Concepts LLC grew its holdings in shares of Ares Management by 100.0% during 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 during the period. Financial Network Wealth Advisors LLC bought a new position in Ares Management in the first quarter worth $31,000. Elevation Point Wealth Partners LLC purchased a new position in Ares Management during the second quarter valued at $35,000. Banque Transatlantique SA purchased a new position in Ares Management during the first quarter valued at $39,000. Finally, Redmont Wealth Advisors LLC bought a new stake in shares of Ares Management during the 3rd quarter valued at $40,000. 50.03% of the stock is owned by institutional investors.

About Ares Management

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.