Rosenthal Bennett, Co-Founder and Chairman of the Private Equity Group at Ares Management Corp (NYSE:ARES), recently sold shares worth approximately $13.67 million. According to a filing with the Securities and Exchange Commission, Bennett disposed of a total of 78,804 shares of Class A Common Stock over several transactions from November 20 to November 22, 2024. The shares were sold at prices ranging from $170.07 to $176.55 per share.
Following these transactions, Bennett, through BAR Holdings, LLC, retains an indirect ownership of 114,967 shares. These sales were part of a pre-arranged trading plan under Rule 10b5-1, which allows executives to set up a trading plan for selling stocks they own.
In other recent news, Ares Management has displayed robust growth in its third-quarter earnings. The company reported an 18% rise in management fees, a 24% increase in fee-related earnings, and a 28% growth in realized income. It also deployed nearly $30 billion in the quarter, contributing to a total of $74.6 billion for the year. Ares Management has been active in fundraising, with nearly $21 billion raised in the third quarter alone.
RBC Capital Markets has updated its outlook on Ares Management, increasing the price target to $185 from the previous $170 while maintaining an Outperform rating. The analyst from RBC Capital revised down the Earnings Per Share (EPS) estimates but acknowledged a growing recognition of the potential resilience in Ares Management's fundraising momentum.
In other company news, Ares Management has launched new products, including a special opportunities fund and a tax-efficient core infrastructure fund. The company's wealth management has also gained momentum, with a 57% increase in AUM year-over-year. However, Ares expects a decrease in the FRE margin to around 40% in Q4 due to various factors, including increased compensation costs. Despite this, Ares projects strong Q4 performance with anticipated fee-related performance revenues between $160 million and $170 million.
InvestingPro Insights
As Rosenthal Bennett's recent stock sale catches investor attention, it's worth examining Ares Management Corp's (NYSE:ARES) current financial position and market performance. According to InvestingPro data, Ares boasts a substantial market capitalization of $55.05 billion, reflecting its significant presence in the alternative asset management sector.
The company's stock has shown remarkable strength, with a 65.71% total return over the past year and a 50.61% return year-to-date. This impressive performance has brought the stock price to within 99.26% of its 52-week high, trading at $175.01 as of the last close.
Despite the strong market performance, investors should note that Ares is trading at a high earnings multiple, with a P/E ratio of 79.03. This valuation metric suggests that the market has high growth expectations for the company. Additionally, an InvestingPro Tip highlights that Ares has maintained dividend payments for 11 consecutive years, demonstrating a commitment to shareholder returns. The current dividend yield stands at 2.12%, with a notable dividend growth of 20.78% over the last twelve months.
Another InvestingPro Tip points out that Ares has raised its dividend for 5 consecutive years, which may be particularly appealing to income-focused investors. This consistent dividend growth, coupled with the company's strong market performance, could explain why the stock is trading near its 52-week high despite the insider sale.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 12 more InvestingPro Tips available for Ares Management Corp, providing a deeper understanding of the company's financial health and market position.
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