Ares management executive sells over $8.4 million in company stock

Bennett Rosenthal, Co-Founder and Chairman of the Private Equity Group at Ares Management Corp (NYSE:ARES), has sold a significant portion of his holdings in the company. According to the latest filings, Rosenthal disposed of company stock worth over $8.4 million.

The transactions, which took place between August 15 and August 19, saw Rosenthal selling shares at prices ranging from $144.43 to $146.24. The sales were executed through a pre-arranged 10b5-1 trading plan, which allows company insiders to sell stock at predetermined times to avoid any accusations of insider trading.

On August 15, Rosenthal sold shares in multiple transactions, with prices per share ranging from $144.13 to $145.10 for 2,101 shares, from $145.15 to $146.14 for 21,180 shares, and from $146.16 to $146.35 for 3,891 shares. The following day, shares were sold at prices ranging from $144.14 to $145.13 for 18,236 shares and from $145.14 to $145.85 for 2,930 shares. On August 19, the shares were sold at prices ranging from $143.95 to $144.92 for 9,817 shares and at prices from $145.43 to $145.48 for 337 shares.

The total value of the shares sold by Rosenthal amounted to approximately $8.49 million, reflecting the executive's confidence in the liquidity of the market for Ares Management's stock.

Investors often monitor insider transactions for insights into the perspectives of top executives and their outlook on the company's stock. While such sales are a routine part of many executives' financial planning, the size and timing can still provide valuable context for market observers.

Ares Management Corp, based in Los Angeles, California, specializes in investment advice and is known for its focus on alternative asset management, including credit, private equity, and real estate markets.

The company's stock, traded under the ticker ARES, is watched by investors interested in the financial sector and the management of investment funds. This recent activity by a key executive will likely be of interest to those following the company's stock performance and insider trading activities.

In other recent news, Hyatt Hotels (NYSE:H) Corporation finalized the sale of the Hyatt Regency Orlando and an adjacent land parcel for approximately $1.07 billion to RIDA Development Corporation and an Ares Management Real Estate fund. This transaction is part of Hyatt's strategy to divest owned properties, surpassing its $2 billion asset-disposition target set in 2021. RIDA and Ares plan to invest in significant renovations of the hotel and develop a new Grand Hyatt hotel on the adjacent 45 acres.

In related developments, Ares Management Corporation reported a robust second-quarter performance, with a significant increase in assets under management and strong fundraising results. The company declared a third-quarter common dividend of $0.93 per share, a 21% increase from the previous year. TD Cowen showed confidence in Ares Management by raising its price target from $158.00 to $162.00, while maintaining a Buy rating on the stock.

Ares Management plans to launch new products in the private wealth channel, particularly in infrastructure, and is open to exploring merger and acquisition opportunities to scale up in large addressable markets. However, the firm also expects a slight increase in default rates and some structural deterioration in the upper middle market credit sector. Despite these challenges, Ares Management's leadership is confident in the resilience and performance of their investment strategies.

InvestingPro Insights

In light of Bennett Rosenthal's recent sale of Ares Management Corp stock, current and potential investors may seek additional data points to better understand the company's financial health and market position. Here are some key metrics and insights from InvestingPro that could provide valuable context:

• Ares Management Corp currently has a market capitalization of approximately $45.23 billion, reflecting its significant presence in the investment management industry.
• The company's Price-to-Earnings (P/E) ratio stands at a lofty 72.94, suggesting that the stock is trading at a premium compared to its earnings. This is further underscored by an adjusted P/E ratio for the last twelve months as of Q2 2024, which is even higher at 97.24.
• Despite a challenging revenue growth environment, with a decrease of 11.64% over the last twelve months as of Q2 2024, Ares Management has maintained a robust gross profit margin of 48.01%, indicating effective cost management relative to its revenues.

An InvestingPro Tip to consider is that Ares Management has consistently raised its dividend for the past 4 years and maintained dividend payments for 11 consecutive years. This could signal a commitment to shareholder returns, even during periods of slower revenue growth. However, it is also important to note that 10 analysts have revised their earnings estimates downwards for the upcoming period, which might reflect concerns about future profitability.

For investors seeking a deeper dive into Ares Management's financials and future prospects, there are additional InvestingPro Tips available on the platform. In fact, there are 11 more tips that offer insights into Ares Management's valuation metrics, such as its high Price/Book multiple and earnings multiple relative to near-term growth, as well as its performance outlook. These can be accessed by visiting https://www.investing.com/pro/ARES.

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