Ares Management Corp (NYSE:ARES) has reported that Co-Founder and Chairman of Private Equity Group, Bennett Rosenthal, has sold a significant portion of his shares in the company. The transactions, which took place over two days, resulted in the sale of company stock valued at over $7 million.
According to the latest filings, Rosenthal sold 8,178 shares at an average price of $144.76, 5,355 shares at an average price of $145.68, 3,843 shares at an average price of $144.56, 14,037 shares at an average price of $145.45, and 17,008 shares at an average price of $146.31. The sales occurred in multiple transactions with prices ranging from $144.56 to $146.31.
The transactions were executed under a pre-arranged 10b5-1 trading plan, which allows company insiders to set up a trading schedule in advance to avoid accusations of insider trading. This plan was adopted on May 16, 2024, indicating that the sales were planned well in advance.
After these transactions, the filings show that Rosenthal still indirectly holds a substantial number of shares through BAR Holdings, LLC, and Ares Owners Holdings L.P., with the latter holding 1,105,052 shares of Class A Common Stock.
Investors often monitor insider sales as they may provide insights into executives' perspectives on the company's future performance. However, it should be noted that such sales do not always indicate a lack of confidence in the company and can be motivated by a variety of personal financial considerations.
Ares Management Corp is a leading global alternative investment manager operating in the fields of credit, private equity, and real estate. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol ARES.
In other recent news, the National Football League (NFL) has approved private equity firms, including Ares Management, Arctos Partners, Sixth Street, and a consortium of others, to acquire up to 10% stakes in its teams. This decision signifies a shift in the NFL's ownership structure, which has traditionally barred private equity ownership. In recent developments, Ares Management received a Neutral rating from Redburn-Atlantic, acknowledging the strength of Ares' origination network, predominantly within its European direct lending business.
Automated Industrial Robotics Inc. (AIR) has acquired UK-based Sewtec Automation, a move funded primarily by an investment from a private equity fund managed by Ares Management. This acquisition aligns with AIR’s growth strategy to meet the rising international demand for manufacturing automation solutions. Hyatt Hotels (NYSE:H) Corporation sold Hyatt Regency Orlando and an adjacent land parcel for approximately $1.07 billion to RIDA Development Corporation and an Ares Management Real Estate fund, aligning with Hyatt's strategy to divest owned properties.
Ares Management reported a third-quarter common dividend of $0.93 per share, marking a 21% increase from the previous year, and reported a record $447 billion in assets under management, an 18% increase year-over-year. TD Cowen raised its price target for Ares Management from $158.00 to $162.00, indicating a positive outlook for the company. These recent developments highlight the strategic moves of Ares Management, reflecting its ongoing efforts to optimize operations and generate value.
InvestingPro Insights
As Ares Management Corp (NYSE:ARES) navigates the market following insider share sales, investors are keeping a keen eye on the company's financial health and stock performance. According to InvestingPro data, Ares has a market capitalization of $45.72 billion and is trading at a Price/Earnings (P/E) ratio of 73.46. This high earnings multiple may raise eyebrows among value-focused investors, especially in light of the company's P/E ratio for the last twelve months as of Q2 2024 standing at an even higher 98.47.
InvestingPro Tips reveal that Ares has demonstrated a commitment to shareholder returns, having raised its dividend for four consecutive years and maintained dividend payments for 11 consecutive years. This could be a sign of the company's confidence in its financial stability and long-term prospects. However, it's important to note that 11 analysts have revised their earnings estimates downwards for the upcoming period, suggesting potential headwinds or a more cautious outlook on the company's near-term earnings growth.
The company's recent performance metrics also shed light on its current state. Ares has seen a decline in revenue growth, with a -11.64% change over the last twelve months as of Q2 2024. Despite this, the firm has managed a gross profit margin of 48.01%, indicating a strong ability to control costs relative to revenues. With a substantial year-to-date price total return of 24.83%, the stock has rewarded investors in the short term, although the recent insider sales may prompt a reevaluation of future expectations.
For those interested in a deeper dive into Ares Management Corp's financials and stock performance, additional InvestingPro Tips are available, providing further insights into the company's valuation metrics and investment potential.
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