Ares Management Corp (NYSE:ARES) reported that Co-Founder and Chairman of Private Equity Group, Bennett Rosenthal, sold a significant portion of his holdings in the company. According to the latest filings, Rosenthal engaged in multiple transactions, selling shares of Class A Common Stock for a total value of over $10.7 million.
The transactions, which took place on September 12, were executed at varying prices, with the range for the sold shares stretching from $141.03 to $143.65. The sales were conducted under a pre-arranged 10b5-1 trading plan, a tool often used by corporate insiders to sell shares over a predetermined period of time to avoid concerns about insider trading.
Rosenthal's sales began with a batch of 5,901 shares at an average price of $141.03, followed by 8,000 shares at an average price of $142.12. The selling continued with 26,768 shares at an average price of $143.01 and concluded with a final sale of 34,331 shares at an average price of $143.65. The transactions significantly reduced Rosenthal's direct holdings in Ares Management.
The sales come at a time when insider trading activities are closely monitored by investors seeking clues about a company's financial health and future prospects. It's worth noting that following the sales, Rosenthal still maintains indirect ownership through Ares Owners Holdings L.P., where he is a limited partner.
Investors and market watchers often keep an eye on such filings to gain insight into executive confidence in the company's performance and valuation. Ares Management Corp, a leading global alternative investment manager, has not made any official comment regarding the transactions.
In other recent news, the National Football League (NFL) has made a significant change to its ownership structure, allowing private equity firms to acquire up to 10% stakes in its teams. This decision brings in Ares Management, Arctos Partners, Sixth Street, and a consortium including Blackstone (NYSE:BX), Carlyle, CVC, and Dynasty Equity, ready to commit a substantial $12 billion.
In recent developments, Ares Management has seen its stock rated Neutral by Redburn-Atlantic, which set a price target of $140.00. TD Cowen, on the other hand, has shown confidence by raising its price target from $158.00 to $162.00.
In the meantime, Automated Industrial Robotics Inc. (AIR) has expanded its global presence through the acquisition of UK-based Sewtec Automation, funded primarily by an investment from a private equity fund managed by Ares Management.
Hyatt Hotels (NYSE:H) Corporation has 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.
Lastly, Ares Management reported a third-quarter common dividend of $0.93 per share, marking a 21% increase from the previous year, and a record $447 billion in assets under management, an 18% increase year-over-year.
InvestingPro Insights
Amid the news of Bennett Rosenthal's share sales, Ares Management Corp's (NYSE:ARES) financial health and stock performance metrics provide additional context for investors. The company has a substantial market capitalization of $46.7 billion, reflecting its significant presence in the global investment management sector. However, it's trading at a high earnings multiple, with a P/E ratio of 75.07 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at an even higher 100.48. This indicates that the stock may be priced optimistically relative to its earnings.
InvestingPro Tips suggest that Ares Management has been able to consistently reward its shareholders, having raised its dividend for 4 consecutive years and maintained dividend payments for 11 consecutive years. The company's dividend yield as of the last data point is 2.54%, coupled with a notable dividend growth of 20.78% over the last twelve months as of Q2 2024. These figures are particularly relevant for income-focused investors who prioritize steady dividend payouts.
Despite recent negative revenue growth figures, with a -11.64% change over the last twelve months as of Q2 2024, Ares Management has demonstrated profitability over the same period. This may suggest that the company is managing to maintain its bottom line despite revenue headwinds. Additionally, Ares Management has experienced a strong return over the last decade, which could be a sign of the company's resilience and long-term performance potential.
For those interested in a deeper dive into Ares Management's financials and stock performance, there are over 10 additional InvestingPro Tips available, offering a more comprehensive analysis of the company's outlook and investment profile. For more detailed insights, visit https://www.investing.com/pro/ARES.
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