David Kaplan, Co-Founder and director of Ares Management Corp (NYSE:ARES), has recently sold shares of the company's Class A Common Stock, totaling approximately $9.34 million. The sales occurred over a series of transactions from November 15 to November 19, 2024, with prices ranging from $166.72 to $170.12 per share.
Kaplan's transactions were conducted through Trently Holdings, LLC, a vehicle controlled by him, and were part of a 10b5-1 trading plan adopted earlier this year. Following these sales, Kaplan holds 194,409 shares indirectly through Trently Holdings, LLC.
These transactions reflect Kaplan's ongoing management of his holdings in Ares Management, a leading global alternative investment manager. Investors often closely monitor such insider activities for potential insights into management's view of the company's future performance.
In other recent news, Ares Management Corporation has demonstrated significant growth in its third-quarter earnings, with an 18% increase in management fees, a 24% rise in fee-related earnings, and a 28% surge in realized income. RBC Capital Markets has acknowledged the company's resilience in fundraising, leading to an adjustment in its price target for Ares Management to $185 from the previous $170, while maintaining an Outperform rating. Despite a slight revision down in the Earnings Per Share estimates, RBC Capital continues to favor Ares Management due to its strong position in the private credit sector.
Further, Ares Management has been successful in deploying nearly $30 billion in the third quarter, contributing to a total of $74.6 billion for the year. The company has also been noted for its record-breaking fundraising efforts, with almost $21 billion raised in the third quarter alone. New products have been introduced, including a special opportunities fund and a tax-efficient core infrastructure fund, diversifying the company's portfolio.
However, Ares Management anticipates a decrease in the Fee-Related Earnings margin to around 40% in Q4, primarily due to increased compensation costs. Despite this projection, the company expects strong Q4 performance with anticipated fee-related performance revenues between $160 million and $170 million. Looking forward, Ares Management projects continued growth in Assets Under Management and performance income in 2025 and beyond. These recent developments underscore a period of robust performance and optimism for Ares Management.
InvestingPro Insights
To provide additional context to David Kaplan's recent stock sales, let's examine some key financial metrics and insights from InvestingPro for Ares Management Corp (NYSE:ARES).
Ares Management's market capitalization stands at an impressive $53.0 billion, reflecting its significant presence in the alternative investment management sector. The company's revenue for the last twelve months as of Q3 2024 was $3.68 billion, with a notable quarterly revenue growth of 68.3% in Q3 2024. This strong growth trajectory aligns with the company's position as a leading player in its industry.
InvestingPro Tips highlight that Ares has maintained dividend payments for 11 consecutive years and has raised its dividend for 5 consecutive years. This consistent dividend policy may be attractive to income-focused investors, especially considering the current dividend yield of 2.18%. The company's commitment to shareholder returns is further underscored by its dividend growth of 20.78% over the last twelve months.
It's worth noting that Ares is trading near its 52-week high, with the current price at 96.93% of its peak. This performance is reflected in the strong returns over various timeframes, including a 61.47% total return over the past year and an impressive 46.18% year-to-date return.
While these metrics paint a positive picture, investors should also consider that Ares is trading at a high earnings multiple, with a P/E ratio of 76.67. This valuation suggests that the market has high expectations for future growth and performance.
For those interested in a deeper analysis, InvestingPro offers 12 additional tips for Ares Management, providing a more comprehensive view of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.