Keystone Investors Reduces Stake in Ares Management Co.

Keystone Investors PTE Ltd. has decreased its ownership in Ares Management Co. (NYSE:ARES) by 29.4% during the fourth quarter, based on the latest Form 13F filing with the Securities and Exchange Commission (SEC). Following this adjustment, Keystone Investors holds 201,215 shares of the asset manager's stock, having sold 83,594 shares in the process.

Ares Management now accounts for approximately 2.5% of Keystone Investors' investment portfolio, ranking as the 15th largest holding for the fund. As of the end of the reporting period, Keystone Investors owned around 0.06% of Ares Management, equivalent to a value of about $35,621,000.

Other Institutional Activity

Other hedge funds have also adjusted their positions in Ares Management. For instance, Vanguard Group Inc. increased its stake in Ares Management by 5.1% during the fourth quarter, bringing its total to 18,807,718 shares valued at $3,329,530,000 after acquiring an additional 907,757 shares. Similarly, JPMorgan Chase & Co. boosted its holdings by 9.0% in the previous quarter, now owning 8,244,179 shares valued at $1,284,773,000 after purchasing more shares. Furthermore, FMR LLC raised its stake by 1.0% during the third quarter, now owning 6,301,709 shares worth $982,058,000, and State Street Corp. also increased its position by 5.1%. Franklin Resources Inc. made a modest increase by raising its stake by 0.5%. Currently, institutional investors and hedge funds control over 50% of Ares Management's shares.

Analyst Ratings Overview

Ares Management has recently been featured in various research reports. JMP Securities reaffirmed a "market perform" rating on the company as of February 6. On the other hand, Keefe, Bruyette & Woods upgraded their rating from "market perform" to "outperform" and increased their target price for the stock from $166.00 to $202.00 in a report on December 20. Wells Fargo & Company revised their price target downward, changing it from $215.00 to $187.00 while maintaining an "overweight" rating. Additionally, Barclays reduced their target from $224.00 to $217.00. StockNews.com took a different approach by lowering their rating on Ares Management from "hold" to "sell" in early January. At present, one analyst rates the stock as a sell, five give it a hold rating, and eight analysts recommend buying. The consensus rating is classified as a "Moderate Buy" with an average price target of $173.83.

Insider Transactions

In related insider activity, Chairman Bennett Rosenthal recently sold 69,809 shares at an average price of $161.01, totaling approximately $11,239,947.09. After this transaction, he retains 30,191 shares valued at around $4,861,052.91, representing a 69.81% decrease in his stock ownership. Another insider, R. Kipp Deveer, sold 78,933 shares on February 6 for about $14,998,848.66, decreasing his ownership by 6.42% after the sale. In total, insiders sold 218,268 shares valued at $37,431,786 in the last quarter, with company insiders currently holding 1.20% of the stock.

Ares Management Stock Performance

On Tuesday, Ares Management stock was trading at $153.81, with a 52-week range of $125.23 to $200.49. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.05, and a current ratio also at 1.05. It possesses a market capitalization of $48.51 billion and a price-to-earnings ratio of 75.77. The average price over the last 50 days is $174.89, while the 200-day moving average stands at $170.35.

In terms of quarterly earnings, Ares Management reported earnings of $1.23 per share in their last earnings announcement on February 5, missing the consensus estimate of $1.35 by $0.12. The firm had a net margin of 11.35% and a return on equity of 16.64%. Analysts project an EPS of 5.28 for the current year.

Dividend Announcement

Ares Management has recently announced an increase in its quarterly dividend, set to be paid on March 31. Shareholders on record as of March 17 will receive a dividend of $1.12 per share, up from the previous $0.93. This signifies an annualized dividend of $4.48 and yields 2.91%. Currently, its payout ratio stands at 183.25%.

Company Overview

Ares Management Corporation functions as an alternative asset manager on a global scale, covering regions such as the United States, Europe, and Asia. It manages a variety of investment funds, targeting both institutional and retail investors across several sectors.

Conclusion

With significant shifts in holdings and various analyst ratings, Ares Management remains a focal point for investors monitoring stock performance and market trends.

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