Ares Management Corp's (NYSE:ARES) Chief Marketing & Strategy Officer, Berry Ryan, has recently sold a significant amount of company stock, totaling over $9.5 million. The transactions took place on the 5th and 9th of September, with share prices ranging from $140.35 to $142.12.
According to the latest filings, Ryan sold 26,867 shares at an average price of $140.35, 30,017 shares at $141.07, 616 shares at $141.90, and 10,000 shares at $142.12. These sales were executed under a prearranged 10b5-1 trading plan, which allows company insiders to set up a planned schedule for selling stocks they own.
The sales were part of multiple transactions, as noted in the footnotes of the filing, with prices for the shares sold on September 5th ranging from $139.81 to $140.80, from $140.81 to $141.78, and from $141.81 to $141.98. On September 9th, the shares were sold at prices between $142.00 and $142.32.
Following these transactions, Ryan continues to hold a substantial number of shares in Ares Management. The footnotes also indicate that this includes 264,202 restricted units granted under the company's equity incentive plan, which vest over time in accordance with the terms of the award agreement.
The sales come as part of normal stock trading activities by company executives and are often scheduled in advance to avoid any potential conflicts of interest or accusations of insider trading. The timing of these sales is typically unrelated to the company's operational performance and is a routine part of managing personal investment portfolios for executives.
Investors and followers of Ares Management Corp will likely keep an eye on the company's stock performance and any future transactions by its executives for insights into market sentiment and individual strategies.
In other recent news, the National Football League (NFL) has opened its doors to private equity firms, allowing them to acquire up to 10% stakes in its teams. Firms such as Ares Management, Arctos Partners, Sixth Street, and a consortium made up of Blackstone (NYSE:BX), Carlyle, CVC, and Dynasty Equity have been approved for these stakes. Meanwhile, Redburn-Atlantic has initiated coverage on Ares Management with a Neutral rating.
In addition, Automated Industrial Robotics Inc. (AIR) has acquired UK-based Sewtec Automation, a move that aligns with AIR’s growth strategy to meet the rising international demand for manufacturing automation solutions. This acquisition was primarily funded by an investment from a private equity fund managed by Ares Management.
Simultaneously, Hyatt Hotels (NYSE:H) Corporation has sold Hyatt Regency Orlando and an adjacent parcel of land to RIDA Development Corporation and an Ares Management Real Estate fund. This transaction aligns with Hyatt's strategy to divest owned properties.
Furthermore, Ares Management has 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 has raised its price target for Ares Management, indicating a positive outlook for the company. These are the recent developments in these companies.
InvestingPro Insights
Ares Management Corp's recent insider stock sales by Chief Marketing & Strategy Officer, Berry Ryan, have raised some eyebrows among investors. With the context of the company's latest financial metrics and market performance, it's worth considering how these sales align with Ares Management's current valuation and outlook.
InvestingPro data reveals that Ares Management Corp (NYSE:ARES) has a market capitalization of $43.76 billion, indicating its significant presence in the market. However, the company is trading at a high P/E ratio of 71.06, which suggests that investors are paying a premium for its earnings. This is further emphasized by the adjusted P/E ratio for the last twelve months as of Q2 2024, which stands at an even higher 94.22. Such a high earnings multiple might raise concerns about the sustainability of the stock's current price levels, especially when coupled with a PEG ratio of 4.96, indicating that the stock's price is quite high relative to its earnings growth.
Moreover, the company's Price / Book ratio as of Q2 2024 is 21.75, which is another indicator that the stock may be overvalued compared to the company's book value. Despite these valuation concerns, it's notable that Ares Management has maintained dividend payments for 11 consecutive years, with a dividend yield of 2.66% as of the last recorded date, which could be appealing to income-focused investors.
For those interested in further insights, InvestingPro offers additional tips on Ares Management Corp, including analysis on earnings revisions and liquidity concerns. At present, there are 11 analysts who have revised their earnings downwards for the upcoming period, and it's noted that the company's short-term obligations exceed its liquid assets. These factors could be crucial for investors considering the implications of insider stock sales and the company's financial health. To explore more, investors can find a total of 11 InvestingPro Tips at https://www.investing.com/pro/ARES, which may provide a deeper understanding of Ares Management's investment profile.
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