Ares Management LP (NYSE:ARES) stock soared to an all-time high this week, reaching a peak of $162.51. This milestone underscores the company's robust performance over the past year, which has seen the stock price surge by an impressive 49.22%. Investors have shown increasing confidence in Ares Management's business model and growth prospects, propelling the stock to new heights and outpacing many of its peers in the financial sector. The 52-week high record is a testament to the firm's strong investment results and strategic initiatives that have resonated well with the market.
In other recent news, Ares Management Corporation has been actively expanding its investment portfolio. The company recently issued $750 million in senior notes, maturing in 2054, through an underwriting agreement with Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. Ares Management also acquired GLP Capital Partners Limited's international business, excluding its Greater China operations, for $3.7 billion, which is expected to nearly double Ares Real Estate's assets under management to about $96 billion.
To fund this acquisition, Ares Management initiated a public offering of 27 million shares of Series B Mandatory Convertible Preferred Stock with an additional option for underwriters to purchase an extra 3 million shares. The company also acquired Walton Street Capital Mexico, adding approximately $2 billion in industrial real estate assets to its portfolio.
Analysts are closely monitoring these developments. TD Cowen maintains a Buy rating on Ares, while CFRA raised its price target for Ares to $170. Conversely, Redburn-Atlantic initiated coverage on Ares Management with a Neutral rating. Ares Management's total assets under management increased by 18% year-over-year, reaching $447.2 billion in the second quarter of 2024, and the company saw a 21% increase in its third-quarter common dividend. These are just a few of the recent developments at Ares Management Corporation.
InvestingPro Insights
Ares Management's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's market capitalization stands at an impressive $51.21 billion, reflecting its significant presence in the asset management industry. InvestingPro data shows that Ares has delivered a remarkable 53.31% total return over the past year, corroborating the article's mention of its 49.22% surge.
Two particularly relevant InvestingPro Tips highlight Ares' strong market position. Firstly, the company is "Trading near 52-week high," which is consistent with the article's focus on the stock reaching an all-time high. Secondly, Ares has shown a "High return over the last year," further supporting the narrative of its impressive performance.
It's worth noting that Ares has maintained dividend payments for 11 consecutive years, demonstrating a commitment to shareholder returns. The company's dividend yield currently stands at 2.3%, with a robust dividend growth of 20.78% over the last twelve months.
For investors seeking more comprehensive analysis, InvestingPro offers 10 additional tips that could provide deeper insights into Ares Management's financial health and market position.
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