Ares Management Corp (NYSE:) announced a major transaction completed by one of its top managers. According to a recent report filed with the Securities and Exchange Commission, co-founder and executive chairman Anthony P. Ressler sold shares of Class A common stock for a total of $12,395,617.
A series of transactions made between March 20 and March 22 were carried out at different prices. On March 20, shares traded at prices ranging from $131.21 to $133.64. The next day, March 21, shares traded at prices ranging from $134.20 to $137.78. The last series of trades on March 22 were executed at prices ranging from $133.77 to $136.17.
These sales were made pursuant to a 10b5-1 trading plan, which was adopted on December 15, 2023. Such plans allow company insiders to set a predetermined schedule for trading shares at a time when they do not have material non-public information. , providing an affirmative defense to insider trading charges.
Following the reported transactions, Ressler’s directly held shares were reduced to zero, the filing stated. However, it should be noted that Ressler, through a company he controls, still indirectly owns a significant amount of shares through Ares Owners Holdings LP.
Investors often track insider transactions because they can provide information about management’s views on a company’s current valuation and future prospects. However, such sales may also be part of personal financial planning and therefore may not always reflect a lack of trust in the company.
Ares Management Corp, headquartered in Los Angeles, California, is a leading global alternative investment manager serving the credit, private equity and real estate markets.
InvestingAbout Insights
With recent insider trading at Ares Management Corp (NYSE:ARES), investors may be trying to gain a deeper financial understanding of the company’s performance and valuation. Ares has a market capitalization of $41.45 billion, according to real-time data from InvestingPro, reflecting its significant presence in the alternative investment management space. The company’s P/E ratio, a key indicator of its valuation, stands at a strong 54.42, and its trailing twelve-month adjusted P/E ratio as of the fourth quarter of 2023 stands at an even higher level of 70.42. This elevated valuation is also reflected in the company’s P/B ratio, which at 21.89 implies a premium market valuation of its net assets.
However, Ares Management Corp has demonstrated strong financial health with revenue growth of 18.87% over the trailing twelve months as of Q4 2023, indicating a positive trajectory for its earnings. Additionally, the company maintained its gross profit margin at 42.54%, highlighting its efficiency in generating revenue revenue.
InvestingPro’s advice indicates a mixed financial outlook for Ares. On the one hand, the company has raised its dividend for 4 years in a row and continued paying dividends for 11 years in a row, demonstrating its commitment to returning profits to shareholders. On the other hand, 8 analysts have revised their earnings downward for the coming period, suggesting potential headwinds. However, the company is expected to be profitable this year, with net income projected to rise. For investors looking for more comprehensive analysis, 14 additional InvestingPro tips are available on InvestingPro that can provide greater insight into Ares’ investment potential.
Interested readers can dive deeper into these detailed analyzes and use the InvestingPro platform to develop an informed investment strategy. To add value to your research, use coupon code PRONEWS24 to receive an additional 10% discount on annual or biennial Pro and Pro+ subscriptions.
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