Ares management CEO Michael Arougheti sells over $7.8 million in company stock By Investing.com

Michael Arougheti, the Co-Founder, CEO, and President of Ares Management Corp (NYSE:), has sold a significant portion of his holdings in the company, according to recent filings. Over the course of three days, Arougheti disposed of shares worth over $7.8 million, with individual transactions ranging in price from $143.65 to $145.41.

The series of transactions began on August 20, 2024, when Arougheti sold 15,110 shares of Class A Common Stock at an average price of $144.18, followed by another 4,500 shares at an average price of $144.71. The sales continued on August 21, with the CEO selling 5,512 shares at an average price of $143.65, 10,100 shares at $144.33, and a smaller batch of 83 shares at $145.41. On the final day, August 22, Arougheti sold 13,247 shares at an average price of $144.02 and 6,024 shares at $144.63.

These transactions were conducted under a 10b5-1 trading plan, which was adopted by Arougheti or a vehicle controlled by him on December 14, 2023. Such plans allow insiders to sell shares over a predetermined period of time, providing a defense against potential accusations of trading on non-public, material information.

Following these sales, Arougheti still holds a substantial amount of Ares Management Corp stock, including 1,375,000 restricted units granted under an equity incentive plan, which vest in installments according to the applicable award agreement.

Investors often monitor insider transactions closely, as they can provide insights into executives’ perspectives on their company’s future performance. However, such sales can also be part of regular financial planning or diversification strategies, and not necessarily indicative of a lack of confidence in the firm.

Ares Management Corp has not provided any comment on the transactions at this time.

In other recent news, Automated Industrial Robotics Inc. (AIR) has acquired UK-based Sewtec Automation, a step towards expanding its global presence and engineering capabilities. The acquisition, funded by an investment from a private equity fund managed by Ares Management, aligns with AIR’s strategy to meet the increasing international demand for manufacturing automation solutions.

Simultaneously, Hyatt Hotels (NYSE:) Corporation has sold Hyatt Regency Orlando and an adjacent land parcel to RIDA Development Corporation and an Ares Management Real Estate fund for approximately $1.07 billion. This transaction is in line with Hyatt’s strategy to divest owned properties, generating $2.6 billion in gross proceeds over the past three years.

In terms of financial analysis, TD Cowen has shown confidence in Ares Management by raising its price target from $158.00 to $162.00. Ares Management has also 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.

These recent developments highlight the strategic moves of AIR, Hyatt Hotels Corporation, and Ares Management Corporation, reflecting their ongoing efforts to optimize operations and generate value.

InvestingPro Insights

Amid the news of CEO Michael Arougheti’s recent stock sales, Ares Management Corp (NYSE:ARES) exhibits a complex financial landscape. According to InvestingPro data, Ares has a market capitalization of $44.97 billion, reflecting its significant presence in the asset management industry. The company’s P/E ratio stands at a lofty 73.1, which may signal that the stock is trading at a premium compared to its earnings. Furthermore, with a PEG ratio of 5.12, the company’s price-to-earnings growth ratio suggests that investors are expecting higher future growth compared to current earnings.

InvestingPro Tips for ARES indicate that analysts have tempered their earnings expectations, with 10 analysts having revised their earnings downwards for the upcoming period. This aligns with the CEO’s recent divestiture, potentially hinting at a prudent move in anticipation of a challenging earnings landscape. However, it’s also noteworthy that Ares has a strong track record of maintaining dividend payments, with dividends raised for 4 consecutive years and maintained for 11 consecutive years, which could be a sign of the company’s commitment to shareholder returns.

For those considering Ares Management Corp as a potential investment, there are 11 additional InvestingPro Tips available, which could provide deeper insights into the company’s financial health and future prospects. These tips can be accessed at https://www.investing.com/pro/ARES, offering valuable information for a more informed investment decision.

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