Bennett Rosenthal, Co-Founder and Chairman of the Private Equity Group (PEG) at Ares Management Corp (NYSE:ARES), has sold a significant portion of his holdings in the company. According to recent filings, Rosenthal parted with a total of $5,985,756 worth of Class A Common Stock, with individual share prices ranging from $143.66 to $144.69.
The transactions, which took place over a span of three days from August 20 to August 22, involved multiple sales at varying prices. On August 20, Rosenthal sold shares at prices between $143.60 and $144.58, while on August 21, the shares were sold in a price range of $143.03 to $144.66. The final day of sales, August 22, saw shares being sold at prices from $143.47 to $144.99.
Despite the sales, Rosenthal continues to have a substantial stake in Ares Management Corp. The sales were conducted through a 10b5-1 trading plan, a tool that allows insiders of publicly traded corporations to set up a trading plan for selling stocks they own. The plan was adopted on May 16, 2024, by Rosenthal or a vehicle controlled by him, indicating that the sales were pre-planned and not based on any immediate market events or inside information.
Ares Management Corp, known for its focus on alternative asset management, particularly in private equity, remains a significant player in the investment advisory space. The recent transactions by one of its top executives may be of interest to current and potential investors, as they reflect movements within the company's insider ownership.
In other recent news, Automated Industrial Robotics Inc. (AIR) has acquired UK-based Sewtec Automation, a move that expands AIR's global presence and engineering capabilities. This acquisition aligns with AIR's growth strategy to meet the rising international demand for manufacturing automation solutions.
Simultaneously, Hyatt Hotels (NYSE:H) Corporation has finalized the sale of Hyatt Regency Orlando and an adjacent land parcel for approximately $1.07 billion to RIDA Development Corporation and an Ares Management Real Estate fund. This transaction aligns with Hyatt's strategy to divest owned properties, having generated $2.6 billion in gross proceeds over the past three years.
In financial developments, Ares Management Corporation declared 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 shown confidence in Ares Management by raising its price target from $158.00 to $162.00.
These are the recent developments within these companies, reflecting ongoing efforts to optimize operations and generate value.
InvestingPro Insights
Amid the recent news of Bennett Rosenthal's share sales, Ares Management Corp (NYSE:ARES) continues to exhibit financial metrics that may be of interest to investors. According to InvestingPro data, Ares Management Corp holds a market capitalization of $44.97 billion, with a relatively high P/E ratio standing at 73.1. This high earnings multiple may indicate market optimism about the company's future prospects, though it's worth noting that the company is trading at a high P/E ratio relative to its near-term earnings growth, with a PEG ratio of 5.12 as of the last twelve months ending Q2 2024.
Investors may also consider the company's Price / Book value, which at 22.49, suggests that the stock might be valued at a premium compared to its book value. This could be reflective of the high returns Ares has delivered over the past decade, a trend that has continued with a strong return over the last five years. In terms of dividends, Ares has demonstrated a commitment to shareholder returns, having raised its dividend for four consecutive years and maintained dividend payments for 11 years in total, with a dividend yield of 2.59% as of the latest data.
While some analysts have revised their earnings estimates downwards for the upcoming period, it's important to note that Ares has been profitable over the last twelve months, and analysts predict profitability for the year. For investors seeking additional insights and metrics, there are more InvestingPro Tips available at InvestingPro, which could further inform their investment decisions regarding Ares Management Corp.
Considering the recent insider trading activity, these financial metrics and InvestingPro Tips can provide a broader context for evaluating Ares Management Corp's stock performance and potential future direction. With additional tips available on InvestingPro, investors have access to comprehensive analyses that could be pivotal in making informed investment choices.
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