Ares Management (NYSE:ARES) Posts Quarterly Earnings Results, Misses Estimates By $0.13 EPS

Ares Management (NYSE:ARES) issued its earnings results on Thursday. The asset manager reported $0.80 EPS for the quarter, missing analysts’ consensus estimates of $0.93 by ($0.13), Briefing.com reports. Ares Management had a return on equity of 21.63% and a net margin of 12.86%. The business had revenue of $707.36 million during the quarter, compared to analysts’ expectations of $814.88 million. During the same quarter in the previous year, the business earned $0.71 EPS.

Ares Management Stock Down 2.0 %

ARES traded down $2.73 during midday trading on Friday, reaching $131.91. The company’s stock had a trading volume of 1,085,269 shares, compared to its average volume of 1,150,762. Ares Management has a 1 year low of $77.97 and a 1 year high of $139.48. The stock’s 50-day moving average is $133.10 and its 200-day moving average is $121.40. The firm has a market capitalization of $40.84 billion, a price-to-earnings ratio of 59.17, a PEG ratio of 1.02 and a beta of 1.17. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.69.

Ares Management Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 28th. Investors of record on Friday, June 14th will be given a dividend of $0.93 per share. The ex-dividend date of this dividend is Thursday, June 13th. This represents a $3.72 dividend on an annualized basis and a yield of 2.82%. Ares Management’s dividend payout ratio (DPR) is currently 166.82%.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on ARES. Barclays lowered their target price on Ares Management from $153.00 to $150.00 and set an “overweight” rating for the company in a research note on Friday. Jefferies Financial Group cut shares of Ares Management from a “buy” rating to a “hold” rating and set a $122.00 target price on the stock. in a report on Tuesday, January 9th. Royal Bank of Canada lifted their target price on shares of Ares Management from $135.00 to $145.00 and gave the stock an “outperform” rating in a research note on Monday, February 12th. UBS Group increased their price target on shares of Ares Management from $156.00 to $160.00 and gave the company a “buy” rating in a research report on Friday, April 12th. Finally, Morgan Stanley boosted their price objective on shares of Ares Management from $109.00 to $118.00 and gave the company an “equal weight” rating in a research report on Wednesday, January 24th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and five have issued a buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $125.92.

Insider Activity

In other Ares Management news, insider R. Kipp Deveer sold 82,796 shares of the business’s stock in a transaction on Wednesday, February 14th. The stock was sold at an average price of $136.47, for a total value of $11,299,170.12. Following the sale, the insider now directly owns 1,245,729 shares of the company’s stock, valued at $170,004,636.63. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In related news, insider R. Kipp Deveer sold 82,796 shares of the firm’s stock in a transaction that occurred on Wednesday, February 14th. The shares were sold at an average price of $136.47, for a total transaction of $11,299,170.12. Following the completion of the sale, the insider now owns 1,245,729 shares of the company’s stock, valued at $170,004,636.63. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Chairman Antony P. Ressler sold 38,915 shares of the company’s stock in a transaction that occurred on Friday, March 15th. The shares were sold at an average price of $132.46, for a total value of $5,154,680.90. Following the completion of the transaction, the chairman now directly owns 96,085 shares in the company, valued at $12,727,419.10. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 1,494,440 shares of company stock worth $199,049,946. Insiders own 1.20% 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.