Ares Management's (ARES) 46.89% Volume Surge Ranks 402nd in Market Activity Amid Insider Sales and Mixed Analyst Ratings

Generated by AI AgentAinvest Market Brief
Friday, Aug 22, 2025 7:00 pm ET1min read
ARES
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Aime RobotAime Summary

- Ares Management (ARES) saw a 46.89% surge in trading volume on August 22, 2025, with institutional investors like Prudential and Banco BTG Pactual boosting stakes by 305.9% and 102.3% respectively.

- CEO Michael Arougheti and Chairman Bennett Rosenthal sold significant shares (58.25% and 53.13% ownership reductions), raising concerns amid a below-estimate $1.03 quarterly EPS and a 258.96% payout ratio.

- Analysts were divided: Barclays and Citigroup upgraded to "overweight/outperform," while Oppenheimer downgraded to "market perform," reflecting valuation debates despite $1.35B revenue exceeding forecasts.

- Institutional ownership remains at 50.03%, with hedge funds holding a major float portion, as mixed technical indicators (50-day: $178.49; 200-day: $166.61) highlight market uncertainty.

On August 22, 2025,

Ares Management
(ARES) rose 1.58% with a trading volume of $0.27 billion, marking a 46.89% increase from the previous day and ranking 402nd in market activity. Institutional activity highlighted Prudential PLC’s 305.9% increase in holdings to 8,110 shares, valued at $1.19 million, while Banco BTG Pactual S.A. boosted its stake by 102.3% to 16,000 shares, totaling $2.35 million. Multiple institutional investors, including Resona Asset Management and Westpac Banking Corp, also expanded their positions during the first quarter.

Insider transactions revealed significant sales, with CEO Michael Arougheti offloading 150,000 shares at $166.37, reducing his ownership by 58.25%, and Chairman Bennett Rosenthal selling 85,000 shares at $168.79. These moves, alongside other insider disposals, raised questions about internal confidence amid the firm’s earnings report.

Ares
posted $1.03 earnings per share for the quarter, below the $1.15 analyst consensus, though revenue of $1.35 billion exceeded expectations. The company announced a $1.12 quarterly dividend, yielding 2.4%, despite a payout ratio of 258.96%.

Analyst sentiment remained mixed, with

Barclays
and
Citigroup
upgrading their price targets and ratings to “overweight” and “outperform,” respectively. However,
Oppenheimer
downgraded to “market perform,” reflecting divergent views on valuation. Institutional ownership stands at 50.03%, with hedge funds and other investors collectively holding a significant portion of the float. The stock’s 50-day and 200-day moving averages stood at $178.49 and $166.61, respectively, as of the latest reporting period.

The backtest of a strategy purchasing the top 500 stocks by daily trading volume and holding for one day from December 2022 to August 2025 generated a total profit of $2,253.88, with a maximum drawdown of -$1,025.71. The strategy’s Sharpe ratio of 1.79 indicates favorable risk-adjusted returns over the period.

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