Ares Management Corp (NYSE:) co-founder David B. Kaplan has sold a significant portion of his shares in the company, according to a recent filing with the Securities and Exchange Commission. Within two days, Kaplan sold shares in a series of transactions worth more than $6.2 million.
The sales occurred on March 20 and 21, 2024, at 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 next day, Kaplan continued his sales, selling 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 completing the sale of 9,104 shares at an average price of 137.48 dollar.
Following these transactions, Kaplan’s direct ownership of Ares Management Corp through Trently Holdings, LLC was reduced, although he still indirectly owns a significant amount of shares through Ares Owners Holdings LP.
The sales were made pursuant to a pre-agreed 10b5-1 trading plan that Kaplan or its controlled entity accepted on December 14, 2023. This plan allows company insiders to set a predetermined schedule for selling shares on a rotating basis. when they do not have material non-public information to avoid accusations of insider trading.
Investors often keep a close eye on insider transactions because they can provide insight into management’s views on a company’s future performance. However, it is also common for executives to sell shares for personal financial management reasons unrelated to their views on the company.
Ares Management Corp, headquartered in Los Angeles, California, is a leading global alternative investment manager focused on credit, private equity, real estate and strategic initiatives.
InvestingAbout Insights
With Ares Management Corp (NYSE:ARES) making headlines for insider transactions, investors are keeping a close eye on the company’s financial health and performance metrics. Ares boasts a high market capitalization of $41.45 billion, according to InvestingPro, reflecting its significant presence in the investment management industry. The company’s P/E ratio is 54.42, with the trailing twelve months’ adjusted P/E ratio to the fourth quarter of 2023 being 70.42, indicating a premium valuation relative to its earnings.
Notably, Ares posted a commendable revenue growth of 18.87% over the trailing twelve months to the fourth quarter of 2023, indicating a strong ability to grow its earnings. This growth trajectory is further supported by a strong gross margin of 42.54%, highlighting the company’s effectiveness in managing cost of sales relative to revenue.
InvestingPro’s tips provide additional insight into Ares’ financial outlook. The company not only raised its dividend for four years in a row, but also maintained its dividend for 11 years in a row, demonstrating its commitment to returning profits to shareholders. Additionally, 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 looking to analyze Ares Management Corp in more depth, InvestingPro offers a number of tips, including 8 analysts who have revised their earnings downward for the coming period and notes that the company is trading at a high price-to-book ratio of 21. 89. With this detailed information, investors will be able to better assess the investment landscape around Ares. Additional InvestingPro tips are available to help investors make informed decisions, also with a coupon code. PRONEWS24, they can receive an additional 10% discount on annual or biennial Pro and Pro+ subscriptions, unlocking even more valuable information. There are a total of 15 additional tips on InvestingPro for Ares Management Corp, which can be accessed at: https://www.investing.com/pro/ARES.
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