Bennett Rosenthal, Co-Founder and Chairman of the Private Equity Group at Ares Management Corp (NYSE:ARES), has sold a significant portion of his holdings in the company. According to the latest filings, Rosenthal sold shares of Class A Common Stock on April 15, 2024, for a total transaction value exceeding $6.4 million.
The series of transactions occurred at varying prices, ranging from $128.54 to $132.41 per share. These sales were conducted under a pre-arranged 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid any accusations of insider trading.
The sale has reduced Rosenthal's direct holdings to zero, as per the latest disclosure. However, through BAR Holdings, LLC, an entity he controls, Rosenthal remains indirectly invested in the company. Additionally, he holds an indirect stake in Ares Management Corp through his limited partnership in Ares Owners Holdings L.P.
Investors often monitor insider transactions for insights into management's perspective on the company's valuation and prospects. While Rosenthal's sales are notable in their volume, they were planned in advance, mitigating concerns over timing related to the company's current performance.
Ares Management Corp has not issued any statements regarding these transactions, and it remains to be seen how this will impact the company's stock performance in the coming days.
InvestingPro Insights
In light of the recent insider transactions at Ares Management Corp (NYSE:ARES), investors may find additional context in the company's financial metrics and analyst expectations. Ares Management boasts a solid market capitalization of $40.58 billion, reflecting its substantial presence in the industry. Despite a high Price/Earnings (P/E) ratio of 52.93, the company's PEG ratio, which measures the P/E relative to the earnings growth rate, stands at an attractive 0.31 as of the last twelve months ending Q4 2023. This suggests that Ares' earnings growth could potentially justify its higher P/E ratio.
Moreover, Ares Management has demonstrated a commendable revenue growth of 18.87% over the last twelve months, indicating robust business performance. With a gross profit margin of 42.54% in the same period, the company's profitability metrics appear healthy. These financial strengths are further supported by a strong return on assets of 4.96%.
From an investment standpoint, Ares Management has shown an impressive one-year price total return of 67.78% leading up to early April 2024. This performance is corroborated by a significant six-month price total return of 25.11%, illustrating a positive trend in the company's stock value. Additionally, investors may take note of the company's commitment to shareholder returns, as Ares has raised its dividend for 4 consecutive years and maintained dividend payments for 11 consecutive years, showcasing a reliable track record.
For those seeking further insights, there are additional InvestingPro Tips available for Ares Management Corp. For example, while the company is trading at a high earnings multiple, analysts predict it will be profitable this year, and net income is expected to grow. These factors may provide a more nuanced perspective on the company's financial health and future prospects. Interested readers can explore more tips and in-depth analysis by using the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. With 15 additional InvestingPro Tips available, investors can gain a comprehensive understanding of Ares Management's position in the market.
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