LOS ANGELES—Berry Ryan, Chief Marketing and Strategy Officer at Ares Management Corp (NYSE:ARES), executed significant stock sales on October 17, according to a recent SEC filing. Ryan sold a total of 40,000 shares of Class A Common Stock, generating approximately $6.72 million. The shares were sold at prices ranging from $165.59 to $170.06.
These transactions were conducted under a 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks to avoid any accusations of insider trading. Following these sales, Ryan retains ownership of 324,202 shares directly, with additional holdings through various indirect ownership structures.
The sales come as part of a broader strategy, with Ryan maintaining a significant stake in the company through direct and indirect holdings. Ares Management, headquartered in Los Angeles, is known for its investment advisory services.
In other recent news, Ares Management Corporation has issued $750 million in senior notes, maturing in 2054, through an underwriting agreement with Morgan Stanley (NYSE:MS) & Co. LLC and Citigroup Global Markets Inc. In a significant stride in the investment sector, Ares Management has acquired GLP Capital Partners Limited's international business, excluding its Greater China operations, for $3.7 billion. This acquisition nearly doubles Ares Real Estate's assets under management to about $96 billion.
Moreover, Ares Management initiated a public offering of 27 million shares of Series B Mandatory Convertible Preferred Stock, primarily aimed at funding the acquisition of GLP Capital Partners Limited's international business. The firm also acquired Walton Street Capital Mexico, adding approximately $2 billion in industrial real estate assets to its portfolio.
Analysts from TD Cowen maintain a bullish stance on Ares, reiterating a Buy rating, while CFRA raised its price target for Ares to $170. However, Redburn-Atlantic initiated coverage on Ares Management with a Neutral rating.
The company saw an 18% year-over-year increase in total assets under management, reaching $447.2 billion in the second quarter of 2024, and a 21% increase in its third-quarter common dividend. Finally, the National Football League approved Ares Management, among other private equity firms, to acquire up to 10% stakes in its teams. These are recent developments that reflect the ongoing activities within the company.
InvestingPro Insights
Berry Ryan's recent stock sales at Ares Management Corp (NYSE:ARES) come at a time when the company's stock is trading near its 52-week high, with a price that is 98.21% of its peak. This aligns with an InvestingPro Tip highlighting ARES's strong return over the last three months, which has seen a 16.07% price total return.
The company's financial health appears robust, with InvestingPro Data showing a market capitalization of $53.18 billion and a revenue of $3.22 billion over the last twelve months as of Q2 2024. Notably, ARES has maintained dividend payments for 11 consecutive years and has raised its dividend for 4 consecutive years, as indicated by InvestingPro Tips. The current dividend yield stands at 2.19%, with an impressive dividend growth of 20.78% over the last twelve months.
However, investors should be aware that ARES is trading at a high P/E ratio of 85.37, which suggests a premium valuation. This is further emphasized by another InvestingPro Tip noting that the company is trading at a high Price / Book multiple, currently at 26.56.
For those interested in a more comprehensive analysis, InvestingPro offers 14 additional tips for ARES, providing deeper insights into the company's financial position and market performance.
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