Ares Management Corp (NYSE:ARES) CEO and Co-Founder, Michael J. Arougheti, has sold a significant portion of his holdings in the company. According to the latest filings, Arougheti disposed of shares in a series of transactions, totaling over $37 million.
The sales, which took place on May 15 and 16, were executed at prices ranging from $146.59 to $149.93 per share. On May 15, Arougheti sold shares at weighted average prices that varied, with a batch going for between $145.92 and $146.91, another set from $146.92 to $147.91, and further sales ranging from $147.92 to $148.91. On the same day, additional shares were sold at prices fluctuating from $148.92 to $149.91, and some at $149.92 to $149.96. The following day, on May 16, share prices for the sales ranged from $146.54 to $147.53, $147.54 to $148.53, and $148.54 to $149.53, with the final sale at $149.67.
The total number of shares sold by Arougheti amounted to a considerable sum, reflecting a notable transaction for the investment management firm. This activity was carried out in accordance with a pre-arranged 10b5-1 trading plan, which allows company insiders to sell their shares at predetermined times to avoid any accusations of insider trading.
Ares Management Corp has not made any official statement regarding the transactions, and it remains standard practice for executives to sell shares for various personal financial planning reasons. The sales do not necessarily indicate a change in the company's performance or outlook.
Investors and stakeholders often monitor such filings to gain insight into the actions of a company's executives, though these transactions are a routine part of executive compensation and asset management.
InvestingPro Insights
Amidst the news of CEO Michael J. Arougheti's share sales, Ares Management Corp (NYSE:ARES) appears to remain a robust company from a financial standpoint. According to real-time data, Ares boasts a substantial market capitalization of $45.14 billion, underscoring its significant presence in the investment management sector. The company's Price/Earnings (P/E) Ratio stands at 63.52, which may seem high, but when considering the PEG Ratio of 0.66, it indicates that ARES's earnings growth is expected to be strong, making the higher P/E ratio more palatable to growth-oriented investors.
Investors should note that Ares Management Corp has a track record of rewarding shareholders, with an impressive dividend growth of 20.78% over the last twelve months as of Q1 2024. This is complemented by the fact that the company has raised its dividend for 4 consecutive years and has maintained dividend payments for 11 consecutive years. This consistency in dividend payments often reflects a company's financial health and commitment to returning value to shareholders.
For those considering a deeper dive into Ares Management Corp, there are additional InvestingPro Tips available that could provide further insights. For instance, the company has been trading near its 52-week high with a price percentage of 96.99%, and analysts predict the company will be profitable this year, having been profitable over the last twelve months. With 11 analysts having revised their earnings downwards for the upcoming period, it's crucial for potential investors to consider both the risks and opportunities ahead.
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