Antony P. Ressler, Co-Founder and Executive Chairman of Ares Management Corp (NYSE:ARES), has sold a substantial portion of his holdings in the company, according to the latest SEC filings. Over the course of two days, Ressler sold shares in a series of transactions totaling over $51 million.
On April 8, Ressler sold 48,378 shares at a weighted average price of $134.23 and 125,180 shares at an average of $135.14. He also sold 700 shares at an average price of $135.59. The following day, he continued the sell-off with 50,953 shares at $132.46, 97,905 shares at $133.06, 57,017 shares at $133.93, 5,962 shares at $135.14, and a final batch of 800 shares at $135.93. The total value of the shares sold reached $51,832,726, with prices ranging from $132.46 to $135.93.
The transactions were executed through TJ Capital Investors, LLC, a vehicle controlled by Ressler, as noted in the footnotes of the SEC filing. These sales were conducted under a pre-established 10b5-1 trading plan, which allows company insiders to sell stocks at predetermined times to avoid accusations of insider trading.
Following these transactions, the SEC filing indicates that Ressler still indirectly holds a sizable stake in Ares Management Corp through Ares Owners Holdings L.P., although the exact number of shares owned after the sale was not detailed in the document.
Investors and market watchers often pay close attention to insider sell-offs like these for hints about the company's performance and potential future stock movements. However, it is not uncommon for executives to sell shares for personal financial management reasons, unrelated to the company's performance.
Ares Management Corp has not issued any statements regarding these transactions, and it remains to be seen how this sell-off will impact the company's stock performance in the coming days.
InvestingPro Insights
Amidst the recent insider sell-off by Antony P. Ressler at Ares Management Corp (NYSE:ARES), investors are keen to understand the underlying financial health and future prospects of the company. According to InvestingPro, Ares Management has demonstrated a consistent commitment to returning value to shareholders, having raised its dividend for 4 consecutive years and maintained dividend payments for 11 consecutive years. This could be a positive signal for long-term investors looking for stable income streams.
InvestingPro data also reveals that Ares Management is expected to see net income growth this year, which may reassure investors following the insider sales. However, it's worth noting that 4 analysts have revised their earnings expectations downwards for the upcoming period, which could suggest a more cautious outlook on the company's near-term performance.
Furthermore, while Ares Management is trading at a low P/E ratio relative to near-term earnings growth, indicating potential undervaluation, the company is also trading at a high earnings multiple and a high Price / Book multiple. This could imply that the market has high expectations for the company's future growth. Investors may want to consider these mixed signals when evaluating the company's stock.
For those interested in a deeper analysis, InvestingPro offers additional insights and metrics. There are currently 12 more InvestingPro Tips available for Ares Management Corp, which can be accessed with a subscription. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing you with a comprehensive toolkit to make more informed investment decisions.
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