Ares Management Corp (NYSE:) Co-Founder David B. Kaplan has sold a significant portion of his holdings in the company, according to a recent filing with the Securities and Exchange Commission. Over the course of two days, Kaplan disposed of shares in a series of transactions valued at over $6.2 million.
The sales occurred on March 20 and 21, 2024, with prices ranging from $131.80 to $137.48 per share. On March 20, Kaplan sold 22,000 shares at an average price of $131.80, followed by 9,222 shares at an average price of $132.67, and another 8,577 shares at an average price of $133.47. The following day, Kaplan continued with the sales, offloading 671 shares at an average price of $134.79, 1,600 shares at an average price of $135.76, 15,089 shares at an average price of $136.73, and concluding with 9,104 shares at an average price of $137.48.
Following these transactions, Kaplan’s direct ownership in Ares Management Corp through Trently Holdings, LLC has been reduced, although he still indirectly holds a significant number of shares via Ares Owners Holdings L.P.
The sales were executed in accordance with a pre-arranged 10b5-1 trading plan, which Kaplan or a vehicle controlled by him had adopted on December 14, 2023. This plan allows company insiders to set up a predetermined schedule to sell stocks at a time when they are not in possession of material non-public information, to avoid accusations of insider trading.
Investors often keep a close eye on insider transactions as they may provide insights into the executives’ perspectives on the company’s future performance. However, it is also not uncommon for executives to sell shares for personal financial management reasons, unrelated to their outlook on the company.
Ares Management Corp, with its headquarters in Los Angeles, California, is a leading global alternative investment manager operating across credit, private equity, real estate, and strategic initiatives.
InvestingPro Insights
As Ares Management Corp (NYSE:ARES) makes headlines with insider transactions, investors are closely monitoring the financial health and performance metrics of the company. According to InvestingPro data, Ares boasts a robust market capitalization of $41.45 billion, reflecting its significant presence in the investment management industry. The company’s P/E ratio stands at 54.42, with an adjusted P/E ratio for the last twelve months as of Q4 2023 at 70.42, indicating a premium valuation relative to its earnings.
Notably, Ares has demonstrated a commendable revenue growth of 18.87% over the last twelve months as of Q4 2023, suggesting a strong capacity to increase its earnings. This growth trajectory is further supported by a substantial gross profit margin of 42.54%, highlighting the company’s efficiency in managing its cost of sales relative to revenue.
InvestingPro Tips provide additional insights into Ares’ financial outlook. The company has not only raised its dividend for four consecutive years but has also maintained dividend payments for 11 consecutive years, showcasing a commitment to returning value to shareholders. Furthermore, Ares is expected to see net income growth this year, which could be a positive signal for investors looking for companies with strong earnings potential.
For those seeking a deeper analysis of Ares Management Corp, InvestingPro offers an array of tips, including 8 analysts who have revised their earnings downwards for the upcoming period, and notes that the company is trading at a high Price / Book multiple of 21.89. With these nuanced insights, investors can better assess the investment landscape surrounding Ares. Additional InvestingPro Tips are available to help investors make informed decisions, and by using the coupon code PRONEWS24, they can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable information. In total, there are 15 additional tips listed on InvestingPro for Ares Management Corp, which can be accessed at: https://www.investing.com/pro/ARES.
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