In a series of transactions, David B. Kaplan, Co-Founder of Ares Management Corp (NYSE:ARES), sold shares totaling over $11.8 million, according to recent SEC filings. The transactions occurred between August 23 and August 27, with prices ranging from $144.49 to $147.91 per share.
On August 23, Kaplan sold 1805 shares at an average price of $144.49, with individual transactions during the day varying from $143.87 to $144.82. The same day, another 5795 shares were sold at an average of $145.34, with prices ranging from $144.90 to $145.89. Additionally, 20912 shares were offloaded at an average price of $146.54, with the range for that day's sales between $145.90 and $146.89. The sales continued with 7547 shares at an average of $147.05, with prices spanning from $146.90 to $147.49.
On August 26, Kaplan continued the selling streak with 7944 shares at an average price of $146.41, with sales prices ranging from $145.72 to $146.71. The same day, 11018 shares were sold at an average of $146.95, with a range from $146.72 to $147.71, and an additional 300 shares at an average of $147.91, with transactions between $147.83 to $147.98.
Wrapping up the sales on August 27, Kaplan sold 7770 shares at an average price of $146.27, with prices ranging from $145.59 to $146.57. Another set of 9683 shares were sold at an average price of $147.18, with a sale range from $146.60 to $147.59, and finally, 8072 shares were sold at an average of $147.77, with a price range between $147.60 to $148.16.
These sales were executed in accordance with a 10b5-1 trading plan, which was adopted by Kaplan or a vehicle controlled by him on May 16, 2024. After these transactions, Kaplan's indirect ownership through Trently Holdings, LLC, remains substantial, with a reported 55,762 shares still under his indirect control.
Investors often look to insider transactions as a gauge of confidence in a company's prospects, and Kaplan's recent sale may prompt market watchers to consider the potential implications for Ares Management Corp's future.
In other recent news, the National Football League (NFL) has approved private equity firms, including Ares Management, to acquire up to 10% stakes in its teams. This decision introduces a significant shift in the NFL's ownership structure. The approved firms, including Ares Management, Arctos Partners, Sixth Street, and a consortium of Blackstone (NYSE:BX), Carlyle, CVC, and Dynasty Equity, are ready to commit a substantial $12 billion to these stakes.
In a parallel development, Ares Management has been rated Neutral by Redburn-Atlantic. The firm acknowledged the strength of Ares' origination network, particularly within its European direct lending business. However, the firm also noted potential challenges due to increasing competition in private credit markets.
In addition, Automated Industrial Robotics Inc. (AIR) has acquired UK-based Sewtec Automation, with the acquisition primarily funded by an investment from a private equity fund managed by Ares Management. This move aligns with AIR's growth strategy to meet the rising international demand for manufacturing automation solutions.
Hyatt Hotels (NYSE:H) Corporation has sold 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 aligns with Hyatt's strategy to divest owned properties.
TD Cowen has shown confidence in Ares Management by raising its price target from $158.00 to $162.00, indicating a positive outlook for the company. Ares Management also reported a third-quarter common dividend of $0.93 per share, marking a 21% increase from the previous year, and reported a record $447 billion in assets under management, an 18% increase year-over-year.
InvestingPro Insights
Amid the news of David B. Kaplan's substantial share sales in Ares Management Corp, investors are evaluating the financial health and future prospects of the company. According to InvestingPro data, Ares Management Corp has a market capitalization of $45.83 billion, reflecting its significant presence in the asset management industry. The company's P/E ratio stands at a high 74.34, which suggests investors are paying a premium for Ares' earnings compared to the broader market.
With a Price/Book ratio of 22.9 for the last twelve months as of Q2 2024, Ares Management Corp is trading at a higher multiple compared to its book value, indicating that the market may be attributing high growth or profitability expectations to the company. Meanwhile, the firm has experienced a revenue decline of 11.64% over the same period, which may raise concerns about its near-term revenue trajectory.
One InvestingPro Tip that stands out is the company's consistent dividend track record, having raised its dividend for 4 consecutive years and maintaining dividend payments for 11 consecutive years. This could signal to investors a certain level of financial stability and a commitment to returning value to shareholders. However, it's also important to note that 11 analysts have revised their earnings expectations downwards for the upcoming period, suggesting that there may be challenges ahead that could impact the company's financial performance.
For those looking to delve deeper into Ares Management Corp's financials and future outlook, there are additional InvestingPro Tips available at https://www.investing.com/pro/ARES. The platform offers comprehensive analysis and metrics that could be crucial for making informed investment decisions.
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