In a recent move, Bennett Rosenthal, the Co-Founder and Chairman of the Private Equity Group at Ares Management Corp (NYSE:ARES), has sold shares totaling over $10 million. This sale was conducted through a series of transactions with prices ranging from $130.08 to $134.22.
The series of sales, which took place between March 15 and March 19, saw Rosenthal parting with a substantial number of shares. On March 15, the transactions included sales at prices between $131.99 and $134.33. The following days saw sales within the price ranges of $129.60 to $132.93. These transactions were executed in accordance with a pre-arranged 10b5-1 trading plan, which allows insiders to sell shares at predetermined times to avoid any accusations of trading on nonpublic information.
Notably, the sales come after Rosenthal acquired 250,000 shares of Class A Common Stock at no cost, increasing his direct holdings significantly. However, following the series of sales, Rosenthal's direct holdings were reduced, although he remains a significant shareholder through indirect ownership.
Ares Management Corp, a leading global alternative investment manager, has not commented on these transactions, which are part of routine disclosures required by company executives. Investors often monitor such filings for insights into the confidence levels of company insiders regarding their firm's prospects.
The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, which provides transparency on the trades made by the company's insiders. Rosenthal's remaining holdings, including indirect ownership through BAR Holdings, LLC, and his interests as a limited partner in Ares Owners Holdings L.P., are still substantial, reflecting his ongoing stake in the company's success.
As investors assess the implications of these sales, it's worth noting that insider transactions are common and can be influenced by a variety of factors, including personal financial planning and diversification strategies.
InvestingPro Insights
Following the recent insider transactions by Bennett Rosenthal at Ares Management Corp, investors looking for a deeper understanding of the company's financial health might find the latest metrics from InvestingPro enlightening. Ares Management Corp, with a market capitalization of $40.98 billion, has shown a robust growth in revenue, reporting an 18.87% increase over the last twelve months as of Q1 2023. This is complemented by a solid gross profit margin of 42.54%, indicating efficient management and a strong competitive position in its industry.
An InvestingPro Tip that stands out for Ares is the company's consistent track record of raising its dividend, which has seen an increase for 4 consecutive years. For income-focused investors, this could signal a commitment to returning value to shareholders, alongside a noteworthy dividend yield of 2.81% as of the latest data. Additionally, Ares Management Corp is expected to be profitable this year, according to analyst predictions listed in InvestingPro, which could further bolster investor confidence amidst the insider selling activity.
However, it's important to note that some analysts have revised their earnings expectations downwards for the upcoming period. While the company is trading at a high earnings multiple with a P/E ratio of 53.63, the PEG ratio of 0.31 suggests that the price may be justified by the near-term earnings growth prospects. These contrasting insights underscore the importance of a comprehensive analysis when evaluating investment decisions.
For those interested in a deeper dive into Ares Management Corp's financials and future outlook, InvestingPro offers additional tips and metrics. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 14 more InvestingPro Tips available, investors can gain a more nuanced understanding of Ares Management Corp's financial landscape and make more informed decisions.
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