Michael Arogeti, co-founder, CEO and president of Ares Management Corp (NYSE:), recently sold a significant portion of his stake in the company. According to the latest filings, Arogeti sold shares totaling more than $12.4 million. The transactions occurred over a three-day period and included the sale of Ares Management’s Class A common stock at prices ranging from $131.81 to $137.45.
The series of transactions began on March 20, 2024, when Arogeti sold 2,300 shares at an average price of $131.81. Further sales were made on the same day, including 9,349 shares at a weighted average price of US$132.70 and 8,100 shares at US$133.48 per share. The selling continued on March 21 with 1,071 shares averaging $134.84, followed by 1,800 shares at $135.83, and significant sales of 34,567 shares at $136.75 and 19,119 shares at $137.45 each. Final trades took place on March 22 with 8,413 shares traded at an average price of $134.05, 6,837 shares sold at $135.22 and a smaller sale of 100 shares at $136.17.
The sales were conducted pursuant to a pre-agreed 10b5-1 trading plan that was accepted by Arogeti or its controlled entity on December 14, 2023. This plan allows corporate insiders to set a trading schedule for the sale of their shares in accordance with insider trading laws.
Following these transactions, Arogeti’s stake in Ares Management, which he directly owned, decreased, although he still indirectly controls a significant amount of shares through Atticus Enterprises LLC. In addition, he owns 1,375,000 restricted shares granted under the equity incentive plan, which will convert into shares of Class A common stock upon vesting.
Investors often track insider transactions to get a sense of how executives perceive a company’s value and prospects. With these recent sales, Arougheti has benefited from current market prices, although the reasons for the sales have not been disclosed.
InvestingAbout Insights
As investors digest news of Michael Arugheti’s recent deals, Ares Management Corp’s (NYSE:ARES) financials provide additional context for understanding the company’s current valuation and performance. An InvestingPro tip that stands out regarding a CEO’s trading activity is the company’s consistent history of dividend payments. Not only has ARES raised its dividend 4 years in a row, but it has also maintained those payouts for 11 years in a row, which could be a signal of the company’s commitment to delivering returns to shareholders.
In terms of valuation, Ares Management is trading at a strong P/B ratio of 21.89 as of the trailing twelve months ending in the fourth quarter of 2023. Despite this, the company’s PEG ratio for the same period is 0.32, suggesting the market may be priced. its shares are at a discount to near-term earnings growth potential. This is further highlighted by the company’s P/E ratio of 54.42, indicating that ARES shares are trading at a low multiple to expected earnings growth.
In terms of performance, Ares Management showed a significant revenue growth of 18.87% over the trailing twelve months as of Q4 2023. This is complemented by a solid 3-month total return of 16.41%, which may have been the right time for Arougheti. sale of shares.
For investors wanting to dig deeper into Ares Management’s financials and prospects, InvestingPro offers additional information. There are 14 more InvestingPro tips available to help investors make more informed decisions. Use coupon code PRONEWS24 to get an additional 10% off annual or two-year Pro and Pro+ subscriptions and unlock the full potential of the financial data and expert analysis that InvestingPro provides.
This article was created with the help of AI and reviewed by an editor. For more information please see our Terms and Conditions.