Ares management co-founder sells over $8.5 million in stock

In a series of transactions, David B. Kaplan, Co-Founder of Ares Management Corp (NYSE:ARES), sold a total of $8,517,973 worth of the company's stock, according to a recent SEC filing. The sales occurred over several days, with prices ranging from $144.39 to $146.21 per share.

On August 15, Kaplan sold 1,200 shares at an average price of $144.39, followed by a sale of 20,668 shares at an average price of $145.61. The same day, he sold an additional 5,200 shares at $146.21 on average. The following day, on August 16, the executive sold 17,596 shares at an average price of $144.87 and 3,552 shares at $145.32. Finally, on August 19, Kaplan sold 10,113 shares at $144.43 and 337 shares at $145.45.

These sales were executed in accordance with a pre-arranged 10b5-1 trading plan, which allows company insiders to sell stocks at predetermined times to avoid accusations of insider trading. Kaplan's transactions were carried out through Trently Holdings, LLC, indicating indirect ownership.

After the sales, Kaplan still indirectly owns a significant amount of Ares Management stock through his involvement with Ares Owners Holdings L.P., as noted in the SEC filing. The filing also made it clear that Kaplan, or a vehicle controlled by him, is a limited partner in Ares Owners Holdings L.P., which is the direct holder of the shares sold.

Investors typically monitor insider transactions for insights into executives' perspectives on their company's stock. While the sale of shares by a company insider may raise questions among investors, it is not uncommon for executives to sell shares for personal financial management reasons, and such transactions do not necessarily indicate a lack of confidence in the company's future prospects.

In other recent news, Hyatt Hotels (NYSE:H) Corporation has finalized the sale of the Hyatt Regency Orlando and an adjacent land parcel for an estimated $1.07 billion to RIDA Development Corporation and an Ares Management Real Estate fund. The sale is part of Hyatt's ongoing strategy to divest owned properties. Furthermore, the deal includes a long-term management agreement to keep the property under the Hyatt Regency brand and a commitment from RIDA and Ares to invest in significant renovations of the hotel.

In relation to Ares Management Corporation, the firm reported strong second-quarter performance, marked by significant growth in assets under management and robust fundraising results. Their total assets under management have surged to a record $447 billion, an 18% increase year-over-year. TD Cowen has expressed confidence in Ares Management by increasing its price target from $158.00 to $162.00, while maintaining a Buy rating on the stock.

These are recent developments that signal strategic moves by both Hyatt Hotels Corporation and Ares Management Corporation. However, it's important to note that this information should be used as part of a broader investment analysis.

InvestingPro Insights

Amidst the recent insider transactions by David B. Kaplan at Ares Management Corp, an analysis of the company's financial health and market performance could provide investors with a broader context. According to InvestingPro data, Ares Management Corp currently holds a market capitalization of $45.23 billion. The company's Price to Earnings (P/E) ratio stands at a lofty 72.94, reflecting a premium that investors are willing to pay for its earnings. This high P/E ratio is further underscored by the company's Price to Book (P/B) ratio of 22.61, suggesting that the market values the company significantly higher than its net asset value.

Despite these high valuation multiples, Ares Management Corp has demonstrated a commitment to shareholder returns, as indicated by one of the InvestingPro Tips, which highlights the company's track record of raising its dividend for 4 consecutive years. Furthermore, Ares Management Corp has maintained dividend payments for 11 consecutive years, showcasing a stable dividend policy. On the earnings front, it's noteworthy that 10 analysts have revised their earnings expectations downwards for the upcoming period, which could be a factor for investors to consider.

For those seeking more comprehensive analysis and tips, InvestingPro offers additional insights. There are 11 more InvestingPro Tips available for Ares Management Corp, which can be accessed through the dedicated InvestingPro page for Ares (https://www.investing.com/pro/ARES). These tips could provide investors with a deeper understanding of the company's financial position, performance metrics, and potential investment risks or opportunities.

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