June 22, 2023 – &RVW Wealth LLC has taken a new position in Ares Management Co. (NYSE:ARES) during the first quarter of the year, valued at approximately $209,000. The institutional investor bought 2,500 shares of the asset manager’s stock and their move has caught the attention of investors worldwide.
Ares Management last posted its earnings results on Friday, April 28th, where they reported an EPS of $0.71 for the quarter but missed the consensus estimate by ($0.11). Ares Management was able to generate a net margin of 6.84% and a return on equity of 16.79%. In addition, the company had revenue of $813.36 million during the quarter compared to analysts’ expectations of $694.04 million.
Following this news, Equities analysts have predicted that Ares Management will post an EPS of 3.6 for this current year based on their observations.
In terms of insider trading activity related to Ares Management Co., major shareholder Ares Management Llc purchased over three-quarters-of-a-million shares in March at an average cost share price of $21.48 with a value totalling $16,110,000.00; since then insiders acquired an additional 1,740,756 shares with a value totaling $37,373,324 and sold 12,5000,076 shares with a value totalling $350203824.
The new investment made by &RVW Wealth LLC is sure to make waves in the world of asset management as it appears that investors continue to maintain confidence in what many consider one of America’s premier diversified alternative investment firms despite disappointing quarterly results which suggests much more productivity lies ahead moving forward into subsequent quarters thanks to volatile markets being successfully adapted around.
With several outstanding new operational developments placed in motion like their recently announced plans for creating a “dedicated real estate platform” in order to better support their diverse range of clients’ needs and interests alike, things seem to be looking promising for what is no doubt one of America’s “101 most promising companies”.
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Ares Management Co.’s Rise in Stocks Attracts Hedge Fund Interest and Major Shareholder Investment
Ares Management Co.’s recent rise in stocks has attracted attention from hedge funds and other institutional investors. Geneos Wealth Management Inc. raised its position in Ares Management by 300% during the first quarter and now owns 400 shares of the asset manager’s stock valued at $32,000 after acquiring 300 additional shares in the last quarter. Other companies such as Northwestern Mutual Wealth Management Co., Zions Bancorporation N.A., Point72 Middle East FZE, and Achmea Investment Management B.V. have all purchased or raised their positions in Ares Management as well. Currently, hedge funds and other institutional investors own around 48.66% of Ares Management’s stock.
With a market cap of $28.16 billion, Ares Management is doing well financially with a price-to-earnings ratio of 84.66, a P/E/G ratio of 0.99 and a beta of 1.32.The company’s stocks opened at $93.13 on June 22, 2023, with a 50-day moving average price of $86.40 and a 200-day moving average price of $80.47.Unfortunately, rating analysts Wells Fargo & Company downgraded the company to an “equal weight” rating from an “overweight” rating due to the reduction in target price from $99 to $93 on Monday, June 12th.
However, Ares Management has had positive news recently with major shareholder Ares Management Llc’s purchase of 750,000 shares for $16,110,000 or $21.48 per share in March this year.The store acquisition added onto the insiders’ over one million shares transactions totaling over $37 million since March this year.So insiders hold almost half of all their issued out-standing capital.In terms of dividends,the company has announced that they will pay out a quarterly dividend of $0.77 on Friday, June 30th to stockholders of record on June 16th.This will be an annualized dividend of $3.08 and a dividend yield of 3.31%.This news is pretty impressive globally.
The company holds promise with a low ratio and their involvement with equity which represents a major advantage in the industry.Equity often equals an increase in value, flexibility, and financing options for investors as well as an overall growth opportunity for companies. Ares Management Co.’s current balance sheet is favorable towards its position in the market, adding to the company’s competitive stance that has garnered interest from top hedge funds and institutional investors. Though they have received one downgrade from Wells Fargo & Company recently, they still hold nine other ratings such as hold or buy.