Ares Management Corp (NYSE:ARES) reported on Tuesday that Co-Founder and Chairman of Private Equity Group, Bennett Rosenthal, has sold a total of $14,041,185 worth of company stock. The transactions, all sales of Class A Common Stock, took place on May 31, 2024, and were executed at varying prices ranging from $139.59 to $145.17.
The sales were conducted under a pre-arranged 10b5-1 trading plan, which allows company insiders to establish a predetermined plan to buy or sell company stock. Such plans are put in place to avoid any accusations of insider trading, as they are set up at a time when the insider is not in possession of material non-public information.
The filings indicate multiple transactions, with shares being sold at different prices within specified ranges. For instance, the stock was sold in one set of transactions at prices fluctuating from $139.09 to $140.08, while another set ranged from $144.13 to $144.52.
Rosenthal's transactions resulted in a notable change in his holdings of Ares Management stock. Despite the substantial sale, the filings disclosed that Rosenthal, through BAR Holdings, LLC, still indirectly owns 150,000 shares of Class A Common Stock following the transactions.
Ares Management Corp, with its headquarters in Los Angeles, California, specializes in investment advice and is known for its significant role in the global alternative management sector.
Investors and stakeholders often monitor the buying and selling activity of company insiders as it can provide insights into their perspective on the company's future performance. However, it's important to note that these transactions do not necessarily indicate a change in company fundamentals and can be influenced by various factors, including personal financial planning.
The detailed information regarding the exact number of shares sold at each price point within the provided ranges is available upon request from the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission, as per the footnotes in the SEC filing.
InvestingPro Insights
In light of the recent insider stock sales by Ares Management Corp's Co-Founder Bennett Rosenthal, investors may seek additional context to gauge the company's financial health and market performance. According to InvestingPro data, Ares Management Corp currently holds a market capitalization of 41.89 billion USD. This metric is crucial as it reflects the company's size and can influence investor perception, especially after significant insider transactions.
Moreover, Ares Management Corp has demonstrated a strong commitment to shareholder returns, as evidenced by a dividend yield of 2.75% as of the first quarter of 2024. This aligns with one of the InvestingPro Tips, which highlights the company's track record of raising its dividend for four consecutive years and maintaining dividend payments for 11 consecutive years. Such a consistent dividend policy can be particularly appealing to income-focused investors.
While the company's P/E ratio stands at a high 59.23, the InvestingPro Tips also point out that Ares is trading at a low P/E ratio relative to near-term earnings growth, suggesting that the stock could be undervalued based on its future earnings potential. This can offer a silver lining to investors concerned about the recent insider selling.
For those looking to delve deeper into Ares Management's financials and stock performance, InvestingPro provides a wealth of additional tips—there are 13 more tips available, offering a comprehensive analysis of the company's prospects. Interested readers can take advantage of the exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking the full suite of insights and analytics.
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