Ares Management Corp (NYSE:) Chief Marketing and Strategy Officer Berry Ryan has sold 20,000 shares of the company’s stock, according to a recent SEC filing. The total value of the stock sold is approximately $3.2 million, with the shares being sold at a weighted average price of $160.07.
The transactions were carried out on October 4, 2024, with individual sale prices ranging from $160.00 to $160.25. The sales were executed under a 10b5-1 trading plan, which was adopted by Ryan on June 6, 2024. A 10b5-1 trading plan allows company insiders to set up a predetermined schedule for selling stocks they own, providing them a way to avoid accusations of insider trading.
Following the sale, Ryan still holds a significant stake in Ares Management Corp. The SEC filing includes a footnote indicating that Ryan’s remaining ownership includes 264,202 restricted units granted under an equity incentive plan of the company. These restricted units are rights to receive shares of Class A Common Stock upon vesting, and they vest according to the terms of the applicable restricted unit award agreement.
The filing also disclosed holdings by Ryan’s retirement savings plan, his spouse’s SEP IRA, joint tenancy with right of survivorship with his spouse, and an IRA, which together hold additional shares of Ares Management Corp’s Class A Common Stock.
Investors and market watchers often monitor insider buying and selling as an indicator of a company’s internal perspective. Transactions by top executives can provide insights into their view of the company’s prospects and may signal confidence or concern regarding the firm’s future.
Ares Management Corp, headquartered in Los Angeles, California, specializes in providing investment management and advisory services. The company is incorporated in Delaware and has a fiscal year ending on December 31.
In other recent news, Ares Management Corporation has embarked on a series of significant acquisitions. The firm announced a public offering to fund the purchase of GLP Capital Partners Limited’s international business, excluding its Greater China operations, for $3.7 billion. Additionally, Ares acquired Walton Street Capital Mexico, adding approximately $2 billion in industrial real estate assets to its portfolio. These acquisitions are expected to nearly double Ares Real Estate’s assets under management to about $96 billion and broaden its international presence.
Ares Management also reported a year-over-year increase of 18% in total assets under management, reaching $447.2 billion in Q2 2024, and a 21% increase in its third-quarter common dividend. The National Football League has approved Ares Management, among other firms, to acquire up to 10% stakes in its teams, marking another key development.
Analyst firms have been closely monitoring Ares’ activities. Jefferies raised its price target for Ares Management to $154, maintaining a Hold rating. TD Cowen reiterated a Buy rating, while CFRA raised its price target for Ares to $170. However, Redburn-Atlantic initiated coverage on Ares Management with a Neutral rating. These are recent developments in Ares Management’s business activities.
InvestingPro Insights
To provide additional context to Berry Ryan’s recent stock sale, let’s examine some key financial metrics and insights from InvestingPro for Ares Management Corp (NYSE:ARES).
As of the latest data, Ares Management has a market capitalization of $48.35 billion, reflecting its significant presence in the investment management industry. The company’s P/E ratio stands at 77.74, indicating that investors are willing to pay a premium for its earnings, which aligns with the InvestingPro Tip that ARES is “Trading at a high earnings multiple.”
Ares Management has demonstrated a commitment to shareholder returns, with an InvestingPro Tip highlighting that the company “Has raised its dividend for 4 consecutive years.” This is further supported by the current dividend yield of 2.43% and an impressive dividend growth of 20.78% over the last twelve months.
The company’s financial performance has been robust, with revenue of $3.22 billion in the last twelve months. Despite a revenue decline of 11.64% over the same period, Ares Management maintains a healthy gross profit margin of 48.01% and an operating income margin of 27.4%, indicating efficient operations.
Investors should note that ARES is trading near its 52-week high, with the current price at 94.94% of that peak. This performance is reflected in the strong total returns across various timeframes, including a 45.34% return over the past year and a 31.61% return year-to-date.
For those interested in a deeper analysis, InvestingPro offers additional tips and insights, with 10 more tips available for Ares Management. These could provide valuable perspective on the company’s valuation, growth prospects, and financial health.
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