David B. Kaplan, the co-founder of Ares Management Corp (NYSE:ARES), has sold a substantial portion of his holdings in the company. According to recent filings, Kaplan disposed of shares worth over $11 million in a series of transactions.
The sales occurred on April 1 and April 2, with the prices per share ranging from $129.01 to $132.38. Kaplan executed these sales through a pre-arranged 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading.
On the first day of April, Kaplan sold shares at weighted average prices that varied throughout the day. The first batch of shares was sold at an average price of $130.86, with individual sales ranging from $130.23 to $131.22. Another set of shares went for an average price of $131.74, with transactions occurring between $131.23 and $132.22. The final sale on that day was made at an average price of $132.38, with prices spanning from $132.23 to $132.77 per share.
The selling continued on April 2, with shares being sold at weighted average prices that once again varied. One group of shares was sold at an average of $129.01, with the range being $128.36 to $129.35. The next set of sales averaged $129.73 per share, with individual transactions falling between $129.36 and $130.34. The last sale for the day was at an average price of $130.62, with a price range from $130.36 to $130.90.
Following these transactions, Kaplan's direct holdings in Ares Management Corp were significantly reduced. However, through Trently Holdings, LLC, he still indirectly retains a substantial number of shares. Additionally, Kaplan or a vehicle controlled by him is a limited partner in Ares Owners Holdings L.P., which indirectly holds shares of Ares Management Corp's Class A Common Stock.
The sales by Kaplan represent a notable change in his investment position in Ares Management Corp, although the motivation behind the sales remains undisclosed. Investors often monitor such insider transactions for insights into executive confidence in the company's future performance.
InvestingPro Insights
Amid the news of David B. Kaplan's share disposals, Ares Management Corp (NYSE:ARES) presents a mixed financial outlook according to the latest data and analysis. The company, with a substantial market capitalization of $40.51 billion, has been experiencing robust revenue growth, with an 18.87% increase in the last twelve months as of Q4 2023. This growth is further underscored by a gross profit margin of 42.54%, reflecting the company's ability to maintain profitability.
One of the key InvestingPro Tips for Ares Management Corp is the company's consistent dividend history, having maintained payments for 11 consecutive years and raising its dividend for the past 4 years. This could be particularly attractive for income-focused investors. Additionally, the company has achieved a high return over the last year, with a 63.71% total price return, which may appeal to growth-oriented investors.
However, Ares is currently trading at a high Price / Book multiple of 21.4 and a P/E ratio of 53.04, which suggests that the stock may be priced at a premium compared to its book value and near-term earnings. This could be a point of consideration for value investors who are weighing the company's growth prospects against its current valuation.
For those interested in a deeper dive into Ares Management Corp's financials and future outlook, additional InvestingPro Tips are available. There are 12 more tips listed on InvestingPro, which can be accessed by visiting https://www.investing.com/pro/ARES. For a limited time, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.