Bennett Rosenthal, Co-Founder and Chairman of PEG at Ares Management Corp (NYSE:ARES), has sold a significant portion of his holdings in the company. According to a recent SEC filing, Rosenthal disposed of 28,107 shares of Class A Common Stock on November 27, 2024, through a series of transactions. The sale comes as Ares Management, now valued at $54.6 billion, trades near its 52-week high of $180.38. The shares were sold at a weighted average price range of $174.93 to $179.92, totaling approximately $5.1 million. Following these transactions, Rosenthal, through BAR Holdings, LLC, no longer holds any shares directly. However, he retains an indirect interest through his partnership in Ares Owners Holdings L.P. The stock has shown remarkable strength with a 49% gain year-to-date, though InvestingPro analysis suggests the stock is currently trading above its Fair Value. For deeper insights into ARES's valuation and 13 additional exclusive ProTips, visit InvestingPro.
In other recent news, Ares Management Corporation has seen robust growth in its third-quarter earnings. The company reported an 18% rise in management fees, a 24% increase in fee-related earnings, and a 28% growth in realized income. 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. This adjustment reflects a reassessment of the firm's Fee-Related Earnings (FRE) margin expectations and its position within the private credit sector. Despite a slight revision down in the Earnings Per Share (EPS) estimates, RBC Capital Markets maintains a positive outlook due to Ares Management's fundraising resilience. The company, however, expects a decrease in the FRE margin to around 40% in Q4 due to various factors, including increased compensation costs. Despite this, Ares projects strong Q4 performance with anticipated fee-related performance revenues between $160 million and $170 million and expects continued growth in AUM and performance income in 2025 and beyond. These are some of the recent developments for Ares Management Corporation.
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