Ares Management (NYSE:ARES) Shares Down 10.2% Following Weak Earnings

Ares Management Corporation (NYSE:ARES)’s stock price traded down 10.2% during mid-day trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $121.92 and last traded at $123.2250. 1,738,189 shares traded hands during mid-day trading, a decline of 35% from the average session volume of 2,655,325 shares. The stock had previously closed at $137.22.

The asset manager reported $1.45 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.71 by ($0.26). Ares Management had a return on equity of 19.26% and a net margin of 9.41%.The firm had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.38 billion. During the same period in the previous year, the firm earned $0.55 earnings per share.

Ares Management Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th will be issued a $1.35 dividend. This represents a $5.40 dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date is Tuesday, March 17th. This is an increase from Ares Management’s previous quarterly dividend of $0.84. Ares Management’s payout ratio is presently 192.27%.

Key Headlines Impacting Ares Management

Here are the key news stories impacting Ares Management this week:

• Positive Sentiment: Ares reported continued fundraising and scale: assets under management crossed the $600 billion mark and the firm highlighted strong fundraising momentum, supporting fee growth and long‑term revenue outlook. Ares CEO Arougheti downplays fears of AI disrupting software businesses
• Positive Sentiment: Ares disclosed record U.S. direct lending origination — ~$19.4B in Q4 and ~$55.0B for the year — which boosts fee‑related earnings potential and demonstrates investor demand for private credit. Ares Announces Record Fourth Quarter and Full-Year 2025 U.S. Direct Lending Origination Activity
• Positive Sentiment: The board approved a materially higher quarterly dividend ($1.35/share, a 60% increase) implying a ~4.4% yield — a clear return‑of‑capital signal that likely attracted income‑seeking investors. (Ex‑dividend: March 17.)
• Neutral Sentiment: Revenue for Q4 came in above some estimates ($1.50B vs ~$1.38B consensus), reflecting fundraising and investing activity; this offsets, but does not erase, bottom‑line pressure. Ares Management Posts Higher 4Q Revenue, Citing Investor Demand
• Neutral Sentiment: Management commented that AI creates both disruption risks and investment opportunities; leadership is framing AI more as an allocation opportunity than an existential threat to their business model. Ares sees investment opportunities in AI disruption
• Negative Sentiment: Q4 EPS missed expectations ($1.45 vs $1.71 consensus) largely due to higher expenses and certain non‑recurring items; that miss triggered near‑term downside pressure and analyst caution on 2026 earnings. A Look At Ares Management (ARES) Valuation After Mixed Quarter And Earnings Miss
• Negative Sentiment: Market sentiment turned negative post‑earnings (including an AI‑fueled sector selloff), which earlier drove shares down despite the AUM prints — investors remain sensitive to near‑term growth and margin visibility for 2026. Ares shares tumble in AI-fueled rout even as assets hit record

Analysts Set New Price Targets

Several research analysts have issued reports on the stock. TD Cowen restated a “buy” rating on shares of Ares Management in a research report on Wednesday, January 14th. Wolfe Research set a $210.00 target price on Ares Management and gave the stock an “outperform” rating in a report on Wednesday, January 7th. Keefe, Bruyette & Woods boosted their target price on Ares Management from $188.00 to $189.00 and gave the stock an “outperform” rating in a research report on Tuesday, November 4th. Barclays decreased their price target on Ares Management from $222.00 to $190.00 and set an “overweight” rating for the company in a research report on Friday. Finally, Citigroup restated a “market outperform” rating on shares of Ares Management in a report on Tuesday, October 21st. Thirteen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, Ares Management currently has a consensus rating of “Moderate Buy” and a consensus target price of $189.33.

Insider Buying and Selling

In other Ares Management news, CEO Michael J. Arougheti sold 56,257 shares of Ares Management stock in a transaction dated Monday, December 1st. The stock was sold at an average price of $157.26, for a total transaction of $8,846,975.82. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. In the last three months, insiders sold 590,000 shares of company stock worth $90,653,808. Company insiders own 36.86% of the company’s stock.

Institutional Trading of Ares Management

Institutional investors have recently made changes to their positions in the stock. Exchange Traded Concepts LLC lifted its position in Ares Management by 100.0% in the 3rd quarter. Exchange Traded Concepts LLC now owns 190 shares of the asset manager’s stock worth $30,000 after buying an additional 95 shares in the last quarter. Elevation Point Wealth Partners LLC acquired a new position in shares of Ares Management in the second quarter worth $35,000. Redmont Wealth Advisors LLC acquired a new position in shares of Ares Management in the third quarter worth $40,000. Atlantic Edge Private Wealth Management LLC purchased a new stake in shares of Ares Management during the fourth quarter worth $42,000. Finally, Elyxium Wealth LLC acquired a new stake in Ares Management during the fourth quarter valued at $42,000. 50.03% of the stock is currently owned by institutional investors and hedge funds.

Ares Management Stock Up 7.3%

The company has a debt-to-equity ratio of 0.62, a current ratio of 0.22 and a quick ratio of 0.22. The business has a 50 day simple moving average of $162.98 and a 200 day simple moving average of $165.32. The stock has a market cap of $42.73 billion, a PE ratio of 77.36, a P/E/G ratio of 0.70 and a beta of 1.52.

About Ares Management

Ares Management Corporation (NYSE: ARES) is a global alternative asset manager that provides investment solutions across credit, private equity and real estate. The firm originates and manages capital across a range of strategies including direct lending, syndicated and special situations credit, private equity buyouts and growth investments, and real estate equity and debt. Ares serves institutional investors, insurance companies, pension funds, sovereign wealth funds, and high‑net‑worth clients through both commingled funds and bespoke managed account structures.

Within credit, Ares offers strategies spanning leveraged loans, structured credit, opportunistic and distressed debt, and specialty finance, with an emphasis on underwriting, portfolio construction and active asset management.