Rosenthal Bennett, Co-Founder and Chairman of the Private Equity Group at Ares Management Corp (NYSE:ARES), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Bennett disposed of shares worth approximately $15.2 million. The transactions, which took place on November 25 and 26, 2024, were executed at prices ranging from $174.45 to $178.46 per share.
Bennett's sales were conducted through BAR Holdings, LLC, a vehicle he controls. Following the transactions, he retains ownership of 29,107 shares directly through BAR Holdings, LLC, and holds additional shares indirectly as a limited partner in Ares Owners Holdings L.P. The sales were part of a pre-arranged 10b5-1 trading plan adopted in August 2024, allowing executives to sell predetermined amounts of stock at set intervals to avoid potential accusations of insider trading.
In other recent news, Ares Management Corporation has demonstrated robust growth in its recent earnings results. The company reported an 18% rise in management fees, a 24% increase in fee-related earnings, and a 28% growth in realized income. Ares has also been active in the global market, deploying nearly $30 billion in the quarter, contributing to a total of $74.6 billion for the year. Record-breaking fundraising efforts have also been noted, with nearly $21 billion raised in the third quarter alone.
RBC Capital Markets has updated its outlook on Ares Management, increasing the price target to $185 from the previous $170 while maintaining an Outperform rating on the company's shares. This adjustment reflects a revised perspective on the firm's financial potential and its position within the private credit sector. Despite slightly revised down earnings per share estimates, the analyst expressed a growing recognition of the potential resilience in Ares Management's fundraising momentum.
However, Ares Management expects a decrease in the fee-related earnings margin to around 40% in the fourth quarter due to various factors, including increased compensation costs. Despite this, Ares projects strong fourth-quarter performance with anticipated fee-related performance revenues between $160 million and $170 million, and expects continued growth in assets under management and performance income in 2025 and beyond.
InvestingPro Insights
To provide additional context to Rosenthal Bennett's recent stock sale, it's worth examining some key financial metrics and insights from InvestingPro for Ares Management Corp (NYSE:ARES).
As of the latest data, Ares Management boasts a substantial market capitalization of $36.09 billion, reflecting its significant presence in the alternative asset management space. The company's stock has demonstrated remarkable performance, with a one-year price total return of 68.66% and a year-to-date return of 53.45%. This strong performance aligns with an InvestingPro Tip indicating that Ares has shown a high return over the last year and is currently trading near its 52-week high.
However, investors should note that Ares is trading at a high earnings multiple, with a P/E ratio of 80.2 and an adjusted P/E ratio of 108.99 for the last twelve months as of Q3 2024. This valuation metric suggests that the stock may be priced at a premium compared to its earnings, which could be a factor in Bennett's decision to sell shares.
On the positive side, Ares Management has maintained a consistent dividend policy. An InvestingPro Tip highlights that the company has raised its dividend for 5 consecutive years and has maintained dividend payments for 11 consecutive years. The current dividend yield stands at 2.08%, with a notable dividend growth of 20.78% in the last twelve months.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights. There are 8 more InvestingPro Tips available for Ares Management, providing a deeper understanding of the company's financial health and market position.
Rosenthal Bennett, Co-Founder and Chairman of the Private Equity Group at Ares Management Corp (NYSE:ARES), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Bennett disposed of shares worth approximately $15.2 million. The transactions, which took place on November 25 and 26, 2024, were executed at prices ranging from $174.45 to $178.46 per share.
Bennett's sales were conducted through BAR Holdings, LLC, a vehicle he controls. Following the transactions, he retains ownership of 29,107 shares directly through BAR Holdings, LLC, and holds additional shares indirectly as a limited partner in Ares Owners Holdings L.P. The sales were part of a pre-arranged 10b5-1 trading plan adopted in August 2024, allowing executives to sell predetermined amounts of stock at set intervals to avoid potential accusations of insider trading.
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