Stock of the Day

Ares Management (ARES)

$174.05

+$4.06 (+2.4%)

Market Cap: $56.69B

About Ares Management

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.

Its Direct Lending Group segment provides financing solutions to small-to-medium sized companies. The company's Private Equity Group segment focuses on majority or shared-control investments primarily in under-capitalized companies. Its Real Estate Group segment invests in new developments and the repositioning of assets, with a focus on control or majority-control investments; and originates and invests in a range of self-originated financing opportunities for middle-market owners and operators of commercial real estate. The firm was previously known as Ares Management, L.P. Ares Management Corporation was founded in 1997 and is headquartered in Los Angeles, California with additional offices in the United States, Europe and Asia. Ares Management GP LLC is the general partner of the company.

Ares Management Bull Case

Here are some ways that investors could benefit from investing in Ares Management Co.:

• The company recently reported earnings per share (EPS) of $1.09, exceeding analysts' expectations, which indicates strong financial performance and potential for growth.
• Ares Management Co. has a solid revenue figure of approximately $952 million for the latest quarter, surpassing analyst estimates, suggesting robust demand for its services.
• The current stock price is around $174, reflecting a positive market sentiment and potential for appreciation as the company continues to perform well.
• With a net margin of over 11%, Ares Management Co. demonstrates effective cost management and profitability, which can lead to higher returns for investors.
• The company has announced a quarterly dividend of $1.12, translating to an annualized yield of about 2.69%, providing a steady income stream for investors.

Ares Management Bear Case

Investors should be bearish about investing in Ares Management Co. for these reasons:

• The dividend payout ratio is notably high at over 263%, which may raise concerns about the sustainability of future dividends if earnings do not continue to grow.
• Insider selling has been significant, with over 972,000 shares sold recently, which could indicate a lack of confidence among insiders regarding the company's future performance.
• Recent analyst ratings have shown mixed sentiments, with some firms downgrading their ratings, which may suggest uncertainty in the stock's future trajectory.
• Despite strong earnings, the stock has seen price target reductions from several analysts, indicating potential volatility and risk in the investment.
• Company insiders own only a small percentage of the stock, which may lead to questions about their alignment with shareholder interests.

Recent News

• 'We are seeing lots of opportunities in Europe,' says Ares co-president (msn.com)
• Ares Has Skeptical View on Private Credit Trading: Jacobson (msn.com)
• Ares Management Co. (NYSE:ARES) Insider David B. Kaplan Sells 33,145 Shares (insidertrades.com)
• Antares Closes $1.2 Billion Credit Secondary Deal to Cash Out Fund Investors (wsj.com)
• Ares Management Corporation to Present at the Morgan Stanley US Financials Conference (gurufocus.com)
• Antares Closes $1.2 Billion Private Credit Continuation Vehicle Led by Ares Management (gurufocus.com)
• Antares Closes $1.2 Billion Private Credit Continuation Vehicle Led by Ares Management (businesswire.com)
• This Ares Management Insider Increased Their Holding By 85% Last Year (finance.yahoo.com)
• India’s Shapoorji Closes $3.4 Billion Record Private Credit Deal (msn.com)
• Ares and Ansley Park Capital provide asset-based and equipment financing to Shimmick (finance.yahoo.com)