Ares Stock Surges. It Went From S&P 500 Snub to Kellanova Sub.

Kellanova owns the Cheez-It brand. Ares is replacing Kellanova in the S&P 500. (Tiffany Hagler-Geard/Bloomberg)

Key Points

• Ares Management will join the S&P 500 index, replacing Kellanova, which is being acquired by Mars Inc.
• Ares Management, with a market capitalization of $54 billion, was a strong candidate for S&P 500 inclusion.
• Shares of Ares Management increased following the announcement.

Ares Management stock surged on news that the investment firm is headed to the S&P 500 .

Ares, with a market capitalization of $54 billion, is one of the largest companies by market value not currently in the S&P 500. It was one of the top candidates for inclusion in the S&P 500 when the index made its rebalancing announcement on Friday. Carvana , CRH, and Comfort Systems USA got the go-ahead, while Ares was snubbed.

The index announced on Monday that Ares will replace Kellanova, which owns Pringles, Cheez-It, Pop-Tarts, and other snack brands. Private company Mars Inc. has agreed to acquire Kellanova, and the deal is expected to close soon.

Created with Highcharts 9.0.1Ares ManagementStock ticker: ARESSource: FactSetAs of Dec. 9

Created with Highcharts 9.0.12025Dec.110120130140150160170180190200$210

Ares stock was up 6.3% at $174.67 in Tuesday trading. Shares were down 7% this year heading into Tuesday’s session. Counting Tuesday’s move, they’re down only 1% on the year.

Ares, like its peers, has been hurt by worries about the private-credit sector. Larger rivals KKR and Blackstone are both down 12% in 2025.

Wall Street is fairly bullish on Ares, with 65% of analysts covering the stock rating it Buy with an average price target of $184.86. That implies a 13% upside to Monday’s closing price.

Ares stock will join the S&P 500 ahead of the open on Dec. 11.

Write to Matthew Bemer at matt.bemer@barrons.com