Berry Ryan, the Chief Marketing and Strategy Officer of Ares Management Corp (NYSE:ARES), recently executed a sale of 18,329 shares of the company's Class A Common Stock. The shares were sold on November 6, 2024, at a weighted average price of $175.18, amounting to a total transaction value of approximately $3.2 million. This transaction was conducted under a pre-established 10b5-1 trading plan.
Following the sale, Ryan retains ownership of 254,885 shares directly, which includes 201,702 restricted units that will vest according to the company's equity incentive plan. Additionally, Ryan holds shares indirectly through various accounts, including a retirement savings plan, a spouse's SEP IRA, and joint tenancy with the right of survivorship.
In other recent news, Ares Management has reported significant growth in its third-quarter earnings. The company disclosed an 18% rise in management fees, a 24% increase in fee-related earnings, and a 28% growth in realized income. Ares has also been active in the global market, deploying nearly $30 billion in the quarter, contributing to a total of $74.6 billion for the year. Record-breaking fundraising efforts have also been noted, with nearly $21 billion raised in the third quarter alone.
RBC Capital Markets has updated its outlook on Ares Management, raising the price target to $185 while maintaining an Outperform rating on the company's shares. This adjustment reflects a revised perspective on the firm's financial potential and its position within the private credit sector. Despite slightly revised down earnings per share estimates, the analyst from RBC Capital expressed a growing recognition of the potential resilience in Ares Management's fundraising momentum.
Despite the positive developments, Ares anticipates a decrease in the Fee-Related Earnings margin to around 40% in Q4 due to various factors, including increased compensation costs. However, the company projects strong Q4 performance with anticipated fee-related performance revenues between $160 million and $170 million and expects continued growth in Assets Under Management and performance income in 2025 and beyond.
InvestingPro Insights
The recent insider sale by Berry Ryan comes at a time when Ares Management Corp (NYSE:ARES) is experiencing strong market performance. According to InvestingPro data, ARES has seen a remarkable 65.62% price total return over the past year, with the stock trading near its 52-week high at 96.95% of that peak. This robust performance is further underscored by the company's 46.2% year-to-date price total return.
InvestingPro Tips highlight that ARES has maintained dividend payments for 11 consecutive years and has raised its dividend for 5 consecutive years. The current dividend yield stands at 2.18%, with a notable dividend growth of 20.78% in the last twelve months as of Q3 2024. This consistent dividend policy may be attractive to income-focused investors, despite the recent insider sale.
However, investors should note that ARES is trading at a high earnings multiple, with a P/E ratio of 75.75 and an adjusted P/E ratio of 95.89 for the last twelve months as of Q3 2024. This valuation metric, combined with the fact that 10 analysts have revised their earnings downwards for the upcoming period, suggests that careful consideration is warranted when evaluating the stock's current price levels.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for ARES, providing deeper insights into the company's financial health and market position. These additional tips can be valuable for investors looking to make informed decisions in light of recent insider transactions and market performance.
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