LOS ANGELES—Bennett Rosenthal, Co-Founder and Chairman of the Private Equity Group at Ares Management Corp (NYSE:ARES), has sold a significant portion of his holdings in the company. According to a recent SEC filing, Rosenthal executed multiple transactions involving the sale of Class A Common Stock over a three-day period from November 15 to November 19, 2024.
Rosenthal sold a total of 43,329 shares at prices ranging from $166.71 to $170.11 per share. The transactions collectively amounted to approximately $9.49 million. These sales were conducted under a pre-established 10b5-1 trading plan, which Rosenthal, or a controlled vehicle, adopted on August 16, 2024.
Following these transactions, Rosenthal holds 193,571 shares of Class A Common Stock through BAR Holdings, LLC, a vehicle he controls. Additionally, he maintains indirect ownership of 1,076,052 shares through Ares Owners Holdings L.P., where he is a limited partner.
Rosenthal's stock sales come as part of a structured plan, allowing executives to sell shares at predetermined times to avoid potential conflicts of interest. Ares Management, a leading global alternative investment manager, continues its operations with a focus on delivering investment performance across various asset classes.
In other recent news, Ares Management has shown significant financial growth with robust third-quarter earnings. The company reported an 18% increase in management fees, a 24% rise in fee-related earnings, and a 28% growth in realized income. Additionally, Ares deployed nearly $30 billion globally in the quarter, contributing to a total of $74.6 billion for the year. Notably, the firm raised nearly $21 billion in the third quarter alone, marking a record-breaking fundraising period.
RBC Capital Markets recently updated its outlook on Ares Management, raising the price target to $185 from the previous $170 while maintaining an Outperform rating. Despite slightly revised down Earnings Per Share (EPS) estimates, RBC highlighted Ares Management's potential resilience in fundraising momentum and its position as a leading global platform for private credit.
However, Ares Management expects a decrease in the Fee-Related Earnings (FRE) margin to around 40% in Q4 due to factors such as increased compensation costs. Despite this, the firm anticipates strong Q4 performance with fee-related performance revenues projected between $160 million and $170 million. The company also foresees continued growth in Assets Under Management (AUM) and performance income in 2025 and beyond.
InvestingPro Insights
As Bennett Rosenthal, Co-Founder and Chairman of the Private Equity Group at Ares Management Corp (NYSE:ARES), executes significant stock sales, it's worth examining the company's current financial position and market performance.
According to InvestingPro data, Ares Management boasts a substantial market capitalization of $53.0 billion, reflecting its prominent position in the alternative investment management sector. The company's stock is currently trading near its 52-week high, with a price that is 96.93% of its peak, indicating strong investor confidence.
Ares has demonstrated impressive financial performance, with a notable quarterly revenue growth of 68.3% in Q3 2024. This growth is complemented by a healthy gross profit margin of 46.1% over the last twelve months, showcasing the company's ability to maintain profitability amid expansion.
InvestingPro Tips highlight that Ares Management has raised its dividend for 5 consecutive years, with a current dividend yield of 2.18%. This consistent dividend growth, coupled with a 20.78% increase over the last twelve months, may appeal to income-focused investors.
However, it's important to note that Ares is trading at a high earnings multiple, with a P/E ratio of 76.67 and an adjusted P/E ratio of 105.63 for the last twelve months as of Q3 2024. This valuation suggests that investors are pricing in significant future growth expectations.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 12 more InvestingPro Tips available for Ares Management, providing a deeper understanding of the company's financial health and market position.
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