Vaughan Nelson Investment Management Reduces Stake in Ares Management

Vaughan Nelson Investment Management L.P. has reduced its stake in Ares Management Co. (NYSE:ARES - Free Report) by 4.3% during the fourth quarter, as stated in its latest filing with the SEC. After selling 8,320 shares during this period, the fund now holds 183,983 shares of the asset manager's stock. This represents around 0.06% ownership of Ares Management, valued at approximately $32,571,000 based on the most recent filing.

Additionally, several other institutional investors have adjusted their holdings in Ares Management. For instance, JPMorgan Chase & Co. increased its stake by 9.0% during the third quarter, bringing its total to 8,244,179 shares worth $1,284,773,000 after acquiring an extra 679,462 shares. Similarly, Principal Financial Group Inc. raised its holdings by 31.3%, now owning 2,849,737 shares valued at $444,103,000 after purchasing 678,549 more shares in the last quarter. Eagle Asset Management Inc. also boosted its position in Ares Management by 26.4%, now holding 1,344,383 shares valued at $229,056,000 after acquiring an additional 280,656 shares.

State Street Corp has lifted its ownership in Ares Management by 5.1%, now owning 3,826,479 shares worth $596,318,000 after acquiring 187,184 more shares. Geode Capital Management LLC also increased its stake by 6.3%, now holding 2,950,451 shares valued at $459,580,000 following the purchase of an additional 175,627 shares. Throughout this period, institutional investors collectively own 50.03% of Ares Management's stock.

Insider Trading at Ares Management

In terms of insider activity, CEO Michael J. Arougheti sold 20,096 shares of Ares Management on November 15th, with each share averaging $167.44, resulting in a total transaction value of approximately $3,364,874.24. Post-transaction, the CEO holds 229,904 shares valued at $38,495,125.76, indicating an 8.04% decrease in ownership. The details of this sale were disclosed in a document submitted to the SEC.

Another insider, Ryan Berry, sold 14,357 shares on December 11th, averaging $180.16 per share for a total of $2,586,557.12. Following this sale, Berry holds 233,214 shares valued at around $42,015,834.24, reflecting a 5.80% decrease in his position. Over the last 90 days, insiders have sold 555,838 shares worth around $96,785,773, with only 1.20% of the shares currently owned by insiders.

Performance of Ares Management Stock

Ares Management shares opened at $190.36. The company's debt-to-equity ratio stands at 0.53, with a current ratio and quick ratio both at 1.05. Ares Management boasts a 50-day simple moving average of $183.68 and a 200-day average of $165.62, alongside a 52-week low of $125.23 and a high of $200.49. The firm has a market capitalization of $59.59 billion, a P/E ratio of 93.77, and a P/E/G ratio of 1.46, with a beta of 1.18.

In its most recent earnings report on February 5th, Ares Management recorded $1.23 earnings per share (EPS) for the quarter, which fell short of analysts' expectations of $1.35 by $0.12. The company posted a net margin of 11.35% and a return on equity of 16.64%. Analysts forecast that Ares Management will see an EPS of 5.53 for the current fiscal year.

Ares Management's Dividend Increase

Furthermore, Ares Management has recently announced an increase in its quarterly dividend. The new dividend of $1.12 per share will be paid on March 31st, with stockholders of record on March 17th eligible to receive the dividend. This adjustment signifies an increase from the previous quarterly dividend of $0.93, translating to an annualized dividend of $4.48, equating to a dividend yield of 2.35%. The ex-dividend date is set for March 17th, and the company's current payout ratio stands at 183.25%.

Revisions in Analyst Ratings

Various analysts have weighed in on Ares Management, with JMP Securities reaffirming a "market perform" rating. Meanwhile, Wells Fargo & Company raised its target price from $207.00 to $215.00, assigning an "overweight" rating. Reports from Keefe, Bruyette & Woods showed an upgrade from "market perform" to "outperform," with a price target increase from $166.00 to $202.00. Additionally, UBS Group increased their price objective from $158.00 to $195.00, giving the stock a "buy" rating. Royal Bank of Canada also raised its target from $170.00 to $185.00, recommending an "outperform" rating. Among analysts, one has a sell rating, five have rated it hold, and eight have recommended a buy, leading to a consensus rating of "Moderate Buy" with an average target price of $176.17.

Overview of Ares Management Company

Ares Management Corporation serves as an alternative asset management firm operating across the United States, Europe, and Asia. Its Tradable Credit Group includes various investment funds such as commingled, separately managed accounts for institutional investors, alongside publicly traded vehicles and sub-advised funds targeting retail investors within tradable and non-investment grade corporate credit markets.

Ares, Investment, Stocks