Axxcess Wealth Management Reduces Stake in Ares Management Corporation

Axxcess Wealth Management LLC has decreased its investment in Ares Management Corporation (NYSE: ARES) by 4.8% during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission, the firm now holds 2,043 shares of the asset management company after selling 102 shares. As of the latest report, Axxcess’s holdings in Ares Management are valued at approximately $354,000.

Several institutional investors have also adjusted their positions in Ares Management. Notably, IFP Advisors Inc increased its stake by 129.6% in the first quarter, acquiring an additional 1,122 shares to reach a total of 1,988 shares, valued at $291,000. Similarly, Cambridge Investment Research Advisors Inc. raised its stake by 40.7%, bringing its total to 7,960 shares worth $1,167,000. Other firms, including Stratos Wealth Partners LTD. and TCW Group Inc., have also increased their holdings significantly.

Analyst Ratings and Insider Activity

Recent reports from various brokerages reveal positive sentiments towards Ares Management. On July 14, 2023, Citigroup reaffirmed an “outperform” rating, while Bank of America raised its target price from $196.00 to $197.00 in a report dated October 3, 2023. Keefe, Bruyette & Woods also increased their target price to $203.00 and maintained an “outperform” rating. Overall, analysts have rated Ares Management with an average rating of “Moderate Buy” and a target price of $181.31, according to data from MarketBeat.com.

In insider trading news, Michael J. Arougheti, the CEO of Ares Management, sold 136,516 shares on August 19, 2023, for a total of approximately $24.95 million. Following this transaction, he retains 311,728 shares valued at about $56.97 million, representing a reduction of 30.46% in his total ownership. Similarly, Antony P. Ressler, Chairman, sold 196,197 shares on August 26, 2023, generating around $35.08 million and decreasing his ownership by 12.11%.

Ares Management Financial Performance

As of the latest trading session, Ares Management shares opened at $141.74. The stock has fluctuated between a 52-week low of $110.63 and a high of $200.49. The company’s market capitalization stands at $46.31 billion, with a price-to-earnings ratio of 81.93 and a PEG ratio of 1.12.

In its most recent earnings report released on August 1, 2023, Ares Management reported earnings per share (EPS) of $1.03, falling short of analyst expectations of $1.15 by $0.12. The company generated revenues of $1.35 billion, exceeding consensus estimates of $1.02 billion. Analysts predict that Ares Management will record an EPS of $5.28 for the current fiscal year.

Ares Management has also announced a quarterly dividend of $1.12, which was paid on September 30, 2023, to stockholders of record from September 16, 2023. This dividend translates to an annualized yield of 3.2%, with a payout ratio currently at 258.96%.

Founded as an alternative asset manager, Ares Management operates across the United States, Europe, and Asia, managing diverse investment funds, including those focused on tradable and non-investment grade corporate credit markets.