In a recent transaction, Bennett Rosenthal, Co-Founder and Chairman of Private Equity Group (PEG) at Ares Management Corp (NYSE:ARES), sold a significant portion of his holdings in the company. The series of sales, which occurred on April 1st and 2nd, totaled over $11 million in Ares Management Corp stock.
The shares were sold at prices ranging from $129.01 to $132.39, according to the details provided in the footnotes of the filing. On April 1st, Rosenthal sold 6,607 shares at an average price of $130.92, 19,703 shares at an average price of $131.78, and 7,594 shares at an average price of $132.39. The following day, he continued the selloff with 15,214 shares at an average price of $129.01, 16,345 shares at an average price of $129.74, and 21,441 shares at an average price of $130.59.
These transactions were conducted under a pre-arranged 10b5-1 trading plan, which was adopted on December 14, 2023. Such plans allow company insiders to set up a predetermined schedule for buying or selling shares at a time when they are not in possession of material non-public information, to avoid accusations of insider trading.
After the sale, Rosenthal still indirectly holds a substantial number of shares through BAR Holdings, LLC, and as a limited partner in Ares Owners Holdings L.P., as indicated in the footnotes of the report.
Investors often monitor insider transactions as they may provide insights into the executive's view of the company's valuation and prospects. The recent sales by Rosenthal represent a notable change in his investment position, though without additional context, the reasons behind the transactions can only be speculated upon.
InvestingPro Insights
Amidst the news of Bennett Rosenthal's recent stock sales, investors and analysts are keen to understand Ares Management Corp's (NYSE:ARES) financial position and market performance. According to InvestingPro, Ares Management Corp currently boasts a market capitalization of $40.51 billion USD and has demonstrated a solid revenue growth of 18.87% over the last twelve months as of Q4 2023. This growth is complemented by a robust operating income margin of 25.33%, reflecting the company's ability to convert sales into profit.
Among the noteworthy InvestingPro Tips, Ares Management Corp has raised its dividend for 4 consecutive years and has maintained dividend payments for 11 consecutive years. This consistent return to shareholders is a positive signal, especially in light of the company's recent high return of 63.71% over the past year. Moreover, the company's next earnings date is scheduled for April 26, 2024, which investors may want to watch closely for the latest financial results and strategic directions.
While the P/E ratio stands at a high 53.04, the PEG ratio of 0.32 suggests that Ares Management Corp is trading at a low price relative to near-term earnings growth, which might be an attractive point for value investors. Additionally, Ares Management Corp has been trading at a high Price / Book multiple of 21.5, signaling that the market may be pricing in the potential for future growth or a premium for other competitive advantages the company holds.
For investors seeking further insights and analysis, there are additional InvestingPro Tips available that could provide a deeper understanding of Ares Management Corp's financial health and market position. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to these valuable investment tips.
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