A recent filing with the Securities and Exchange Commission has revealed that a high-ranking executive at Ares Management Corp (NYSE:ARES) has sold a significant portion of their holdings in the company. The Chief Marketing and Strategy Officer of Ares Management, Berry Ryan, executed multiple sales of Class A Common Stock over a three-day period, resulting in a total divestment of over $7.6 million.
The transactions, which took place on September 17, 18, and 19, saw Berry Ryan selling shares at varying prices. On the first day, shares were sold in a price range between $150.00 and $150.93, with a weighted average price of $150.37 for 11,092 shares and $151.06 for 1,408 shares. The following day, Ryan continued to sell shares at prices ranging from $154.00 to $154.94, with a weighted average of $154.32 for 11,220 shares, and at prices between $155.00 and $155.44, averaging $155.13 for 1,280 shares. The final sales on September 19 were transacted at prices from $156.00 to $156.87, with a weighted average price of $156.17 for 12,500 shares.
The SEC filing indicated that these sales were pre-arranged under a 10b5-1 trading plan, which was adopted on June 6, 2024. Such plans allow company insiders to set up a predetermined schedule for buying or selling stocks at a time when they are not in possession of material non-public information.
Following the sales, Berry Ryan's direct holdings in Ares Management Corp Class A Common Stock were reported to be 403,110 shares, not including additional indirect holdings through a retirement savings plan, a spouse's SEP IRA, joint tenancy with the right of survivorship, and an IRA, which total 309,314 shares.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. The recent sales by Berry Ryan represent a notable change in their investment position, although the reasons for the sales have not been disclosed.
In other recent news, the National Football League (NFL) has permitted private equity firms to acquire up to 10% stakes in its teams, a significant departure from its traditional ownership structure. Firms such as Ares Management, Arctos Partners, Sixth Street, and a consortium including Blackstone (NYSE:BX), Carlyle, CVC, and Dynasty Equity have been initially approved for these stakes. In parallel, Ares Management has seen its stock target increased from $158.00 to $162.00 by TD Cowen, indicating a positive outlook for the company.
The NFL's decision came after a vote by the league's 32 team owners and is anticipated to provide a viable alternative for future franchise sales. Ares Management was also in the spotlight when Redburn-Atlantic initiated coverage on its shares with a Neutral rating and a price target of $140.00. The company reported a third-quarter common dividend of $0.93 per share, a 21% increase from the previous year, and a record $447 billion in assets under management, an 18% increase year-over-year.
In addition to these developments, Automated Industrial Robotics Inc. (AIR) has acquired UK-based Sewtec Automation, expanding its global reach and engineering capabilities. The acquisition was primarily funded by an investment from a private equity fund managed by Ares Management. On the other hand, Hyatt Hotels (NYSE:H) Corporation sold Hyatt Regency Orlando and an adjacent parcel of land for approximately $1.07 billion to RIDA Development Corporation and an Ares Management Real Estate fund, aligning with Hyatt's strategy to divest owned properties.
InvestingPro Insights
As Ares Management Corp (NYSE:ARES) navigates the market, a closer look at its financial metrics through InvestingPro data offers investors a more nuanced view of the company's current position. With a market capitalization of approximately $49.08 billion, Ares has shown a significant presence in its sector. However, the company's P/E ratio stands at a high 79.05, and even more notably, the adjusted P/E ratio for the last twelve months as of Q2 2024 is at an elevated level of 105.27, suggesting that the stock may be trading at a premium compared to its earnings.
The company's Price/Book ratio for the same period is 24.47, which could indicate that the market is valuing the company's net assets at a substantial markup. Despite these high valuation multiples, Ares has been able to maintain a stable dividend, with a current yield of 2.44% and an impressive dividend growth of 20.78% over the last twelve months as of Q2 2024. This commitment to returning value to shareholders is underscored by the InvestingPro Tip that Ares has raised its dividend for four consecutive years and has maintained dividend payments for 11 consecutive years.
Investors considering Ares Management Corp should also be aware that analysts have revised their earnings expectations downwards for the upcoming period, which could impact the stock's performance. For those seeking further insights and analysis, InvestingPro offers additional tips on Ares Management Corp, which can be accessed at Investing.com/pro/ARES.
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