Ares management co-founder sells over $7.89 million in stock By Investing.com

In a recent transaction, David B. Kaplan, Co-Founder of Ares Management Corp (NYSE:), sold a significant portion of his holdings in the company. The sales, conducted over three days, resulted in a total of over $7.89 million in Class A Common Stock being sold.

The transactions, which took place on August 20, 21, and 22, saw Kaplan selling shares at prices that ranged from $143.67 to $145.41. On the first day, shares were sold in multiple transactions with prices varying between $143.61 and $144.83. The following day, the shares were again sold in multiple transactions, this time at prices ranging from $143.02 to $144.77. On the final day, shares were sold at prices from $143.49 to $144.94.

These sales were executed in accordance with a pre-arranged 10b5-1 trading plan, which Kaplan or a vehicle controlled by him adopted on May 16, 2024. The 10b5-1 trading plan allows company insiders to set up a predetermined plan to sell company stocks in a way that avoids accusations of insider trading.

The transactions were carried out indirectly through Trently Holdings, LLC, with Kaplan retaining indirect ownership of 1,180,052 Class A Common Stock shares through Ares Owners Holdings L.P., as indicated in the SEC filing.

Investors and market watchers often pay close attention to insider sales as they may provide insights into an insider’s perspective on the company’s current valuation and future prospects. However, it’s important to note that such sales do not always indicate a lack of confidence in the company and may be executed for various personal or financial reasons.

Ares Management Corp, with its headquarters in Los Angeles, California, is a leading global alternative asset manager that provides a range of investment solutions to its clients. The company has been publicly traded since its IPO and continues to manage significant assets across different investment groups.

In other recent news, Automated Industrial Robotics (AIR) has acquired UK-based Sewtec Automation, expanding its global presence and engineering capabilities. This move aligns with AIR’s growth strategy to meet the rising international demand for manufacturing automation solutions. Meanwhile, Hyatt Hotels (NYSE:) Corporation has sold the Hyatt Regency Orlando and an adjacent land parcel for approximately $1.07 billion to RIDA Development Corporation and an Ares Management Real Estate fund, as part of its strategy to divest owned properties.

Ares Management Corporation has 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. TD Cowen has shown confidence in Ares Management by raising its price target from $158.00 to $162.00. In addition, Ares Management plans to launch new products in the private wealth channel and explore merger and acquisition opportunities to scale up in large markets.

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

Amidst recent insider transactions at Ares Management Corp (NYSE:ARES), investors are keen to understand the financial health and market performance of the company. According to InvestingPro data, Ares Management Corp has a market capitalization of $44.97 billion and is trading at a high P/E ratio of 73.1, which suggests that the stock may be valued richly in relation to the company’s earnings. The P/E ratio has further increased in the last twelve months as of Q2 2024, reaching 96.52, reflecting a premium that investors are willing to pay for Ares’ earnings potential.

The company’s revenue has seen a contraction, with a decline of 11.64% in the last twelve months as of Q2 2024, and a sharper quarterly revenue decline of 27.86% in Q2 2024. Despite this, Ares has demonstrated a commitment to shareholder returns, having raised its dividend for 4 consecutive years and maintained dividend payments for 11 consecutive years, with a noteworthy dividend growth of 20.78% in the last twelve months as of Q2 2024.

InvestingPro Tips highlight that Ares Management Corp is trading at a high Price / Book multiple of 22.49, which could be of interest to investors considering the company’s asset valuation. Additionally, analysts predict the company will remain profitable this year, which aligns with the company’s track record of profitability over the last twelve months. For those seeking more detailed analysis, there are 10 additional InvestingPro Tips available for Ares Management Corp at InvestingPro, providing a more comprehensive look at the company’s financials and market positioning.

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