Sumitomo Mitsui Trust Holdings Inc. Invests $26.20 Million in Ares Management Co. (NYSE:ARES)

Posted by Defense World Staff on Apr 18th, 2023

Sumitomo Mitsui Trust Holdings Inc. acquired a new position in Ares Management Co. (NYSE:ARES – Get Rating) during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The fund acquired 382,833 shares of the asset manager’s stock, valued at approximately $26,201,000. Sumitomo Mitsui Trust Holdings Inc. owned approximately 0.13% of Ares Management as of its most recent filing with the SEC.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Geneos Wealth Management Inc. grew its holdings in shares of Ares Management by 300.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 400 shares of the asset manager’s stock worth $32,000 after acquiring an additional 300 shares during the last quarter. Hexagon Capital Partners LLC grew its holdings in shares of Ares Management by 2,395.7% in the 3rd quarter. Hexagon Capital Partners LLC now owns 574 shares of the asset manager’s stock worth $36,000 after acquiring an additional 551 shares during the last quarter. Benjamin F. Edwards & Company Inc. acquired a new position in shares of Ares Management in the 3rd quarter worth $43,000. McClarren Financial Advisors Inc. acquired a new position in shares of Ares Management in the 3rd quarter worth $63,000. Finally, DekaBank Deutsche Girozentrale acquired a new position in shares of Ares Management in the 3rd quarter worth $85,000. Institutional investors own 47.96% of the company’s stock.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on ARES shares. StockNews.com started coverage on Ares Management in a report on Thursday, March 16th. They set a “sell” rating on the stock. BMO Capital Markets lifted their price target on Ares Management from $89.00 to $91.00 and gave the company a “market perform” rating in a report on Friday, February 10th. The Goldman Sachs Group lifted their price target on Ares Management from $89.00 to $98.00 and gave the company a “buy” rating in a report on Friday, February 10th. Morgan Stanley lifted their price target on Ares Management from $82.00 to $88.00 and gave the company an “equal weight” rating in a report on Monday, February 13th. Finally, Royal Bank of Canada lifted their price target on Ares Management from $93.00 to $100.00 and gave the company an “outperform” rating in a report on Tuesday, February 14th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and seven have given a buy rating to the stock. Based on data from MarketBeat, Ares Management presently has a consensus rating of “Moderate Buy” and an average price target of $95.78.

Insider Activity

In other news, Director Corporate Opportunities F. Ares sold 4,770,000 shares of the company’s stock in a transaction that occurred on Wednesday, February 15th. The stock was sold at an average price of $26.06, for a total value of $124,306,200.00. Following the sale, the director now directly owns 14,326,090 shares in the company, valued at approximately $373,337,905.40. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. In related news, Chairman Antony P. Ressler sold 25,269 shares of the stock in a transaction that occurred on Wednesday, February 1st. The stock was sold at an average price of $85.19, for a total transaction of $2,152,666.11. Following the sale, the chairman now directly owns 712,670 shares in the company, valued at approximately $60,712,357.30. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Corporate Opportunities F. Ares sold 4,770,000 shares of the stock in a transaction that occurred on Wednesday, February 15th. The stock was sold at an average price of $26.06, for a total value of $124,306,200.00. Following the sale, the director now owns 14,326,090 shares in the company, valued at $373,337,905.40. The disclosure for this sale can be found here. In the last ninety days, insiders have purchased 4,239,116 shares of company stock worth $33,834,951 and have sold 5,121,973 shares worth $154,478,492. Corporate insiders own 47.38% of the company’s stock.

Ares Management Stock Performance

Shares of NYSE ARES opened at $82.95 on Tuesday. The business’s 50-day moving average price is $80.92 and its two-hundred day moving average price is $76.11. The company has a debt-to-equity ratio of 0.64, a current ratio of 0.98 and a quick ratio of 0.98. Ares Management Co. has a one year low of $53.15 and a one year high of $87.50. The company has a market capitalization of $24.61 billion, a P/E ratio of 97.59, a price-to-earnings-growth ratio of 0.78 and a beta of 1.31.

Ares Management (NYSE:ARES – Get Rating) last posted its quarterly earnings results on Thursday, February 9th. The asset manager reported $1.21 EPS for the quarter, beating the consensus estimate of $1.07 by $0.14. The firm had revenue of $937.72 million during the quarter, compared to analysts’ expectations of $813.69 million. Ares Management had a return on equity of 16.82% and a net margin of 5.48%. During the same quarter in the prior year, the firm posted $0.85 EPS. Analysts anticipate that Ares Management Co. will post 3.93 earnings per share for the current fiscal year.

Ares Management Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 31st. Stockholders of record on Friday, March 17th were paid a $0.77 dividend. This is a positive change from Ares Management’s previous quarterly dividend of $0.61. This represents a $3.08 annualized dividend and a dividend yield of 3.71%. The ex-dividend date was Thursday, March 16th. Ares Management’s dividend payout ratio is currently 362.35%.

Ares Management Company Profile

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Ares Management Corp. is engaged in providing investment management and consultancy services. It operates through the following segments: Credit Group, Private Equity Group and Real Estate Group. The Credit Group segment offers credit strategies across the liquid and illiquid spectrum, including syndicated bank loans, high yield bonds, credit opportunities, special situations, asset-backed investments and U.S.