Ares Management (NYSE:ARES) Reaches New 52-Week High – Still a Buy?

Ares Management Co. (NYSE:ARES) reached a new 52-week high during mid-day trading on Thursday . The company traded as high as $177.45 and last traded at $177.45, with a volume of 695 shares trading hands. The stock had previously closed at $167.45.

Wall Street Analysts Forecast Growth

Several research firms have commented on ARES. TD Cowen boosted their target price on shares of Ares Management from $184.00 to $187.00 and gave the stock a “buy” rating in a research report on Monday, November 4th. UBS Group upped their price objective on shares of Ares Management from $158.00 to $195.00 and gave the stock a “buy” rating in a report on Tuesday, October 22nd. Morgan Stanley raised their target price on Ares Management from $136.00 to $162.00 and gave the company an “equal weight” rating in a report on Thursday, October 10th. Redburn Atlantic began coverage on Ares Management in a research note on Tuesday, August 27th. They set a “neutral” rating and a $140.00 price target for the company. Finally, JPMorgan Chase & Co. cut their price objective on Ares Management from $176.00 to $174.00 and set an “overweight” rating on the stock in a research note on Tuesday, November 5th. Six analysts have rated the stock with a hold rating and six have issued a buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $166.36.

Ares Management Price Performance

The company has a 50-day moving average of $160.15 and a 200 day moving average of $147.57. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.05 and a current ratio of 1.05. The firm has a market cap of $52.30 billion, a P/E ratio of 77.00, a P/E/G ratio of 1.82 and a beta of 1.20.

Ares Management (NYSE:ARES) last posted its earnings results on Friday, November 1st. The asset manager reported $0.95 earnings per share for the quarter, topping the consensus estimate of $0.94 by $0.01. Ares Management had a net margin of 12.51% and a return on equity of 19.89%. The business had revenue of $1.13 billion for the quarter, compared to analyst estimates of $833.58 million. During the same quarter in the prior year, the firm earned $0.83 EPS. On average, sell-side analysts anticipate that Ares Management Co. will post 4.07 EPS for the current year.

Ares Management Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 31st. Shareholders of record on Tuesday, December 17th will be given a $0.93 dividend. The ex-dividend date is Tuesday, December 17th. This represents a $3.72 annualized dividend and a yield of 2.23%. Ares Management’s payout ratio is 171.43%.

Insiders Place Their Bets

In other news, insider Ryan Berry sold 18,329 shares of the firm’s stock in a transaction dated Wednesday, November 6th. The shares were sold at an average price of $175.18, for a total value of $3,210,874.22. Following the transaction, the insider now owns 254,885 shares of the company’s stock, valued at approximately $44,650,754.30. This trade represents a 6.71 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider David B. Kaplan sold 10,450 shares of the business’s stock in a transaction that occurred on Monday, August 19th. The stock was sold at an average price of $144.46, for a total transaction of $1,509,607.00. Following the sale, the insider now directly owns 191,334 shares of the company’s stock, valued at approximately $27,640,109.64. This trade represents a 5.18 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 561,280 shares of company stock valued at $83,030,436. 1.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Ares Management

Institutional investors have recently bought and sold shares of the business. Point72 DIFC Ltd bought a new position in shares of Ares Management in the 3rd quarter worth $36,000. Eastern Bank acquired a new stake in Ares Management in the third quarter worth $39,000. West Oak Capital LLC boosted its position in shares of Ares Management by 40.0% during the second quarter. West Oak Capital LLC now owns 350 shares of the asset manager’s stock worth $47,000 after purchasing an additional 100 shares in the last quarter. Key Financial Inc acquired a new position in shares of Ares Management in the 2nd quarter valued at $53,000. Finally, EntryPoint Capital LLC bought a new stake in shares of Ares Management in the 1st quarter valued at $54,000. Institutional investors and hedge funds own 50.03% of the company’s stock.

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.