Michael J. Arougheti, the Co-Founder, CEO and President of Ares Management Corp (NYSE:ARES), has recently sold a significant portion of his stock in the company. According to the latest filings, Arougheti sold shares totaling approximately $15.1 million. The transactions occurred over two days, with a range of prices per share.
On March 14, 2024, Arougheti sold a total of 74,585 shares of Class A Common Stock, with prices ranging from $131.85 to $134.24. This included 39,758 shares at an average price of $132.53, 24,457 shares at an average of $133.26, and 10,370 shares at an average of $133.99. The following day, on March 15, Arougheti continued to sell, with 30,326 shares going for an average price of $132.18, 8,066 shares at an average of $133.34, and a smaller batch of 800 shares at an average price of $134.19.
These sales were executed under a pre-arranged 10b5-1 trading plan, which was adopted on December 14, 2023. Such plans allow company insiders to set up a predetermined schedule for buying or selling shares to avoid accusations of insider trading.
In addition to the sales, the CEO also acquired 175,000 shares of Class A Common Stock at no cost on March 15. This transaction is related to Ares Operating Group Units and is part of an exchange agreement allowing the partnership units of the Ares Operating Group to be exchanged for shares of Class A Common Stock on a one-for-one basis. These shares are indirectly held through Ares Owners Holdings L.P., where Arougheti is a limited partner.
Following these transactions, Arougheti's direct ownership in Ares Management Corp remains substantial, with over 1.3 million shares still held after the reported sales. The sales and acquisitions are part of the normal course of business for corporate executives who often receive compensation in the form of stock and stock options.
Investors and market watchers closely monitor insider transactions as they can provide insights into an insider’s view of the company's future prospects. However, such transactions are not always indicative of a change in company strategy or performance.
Ares Management Corp, based in Los Angeles, California, specializes in providing investment advice and is recognized as a leader in the global alternative investment management sector.
InvestingPro Insights
Following the recent sale of shares by Ares Management Corp's CEO, Michael J. Arougheti, investors might be curious about the company's performance and outlook. Here are some insights based on real-time data and InvestingPro Tips:
The company's market capitalization stands at a robust $40.28 billion, reflecting its significant presence in the investment management sector. Despite a high P/E ratio of 53.35, Ares Management Corp has shown an impressive 18.87% revenue growth over the last twelve months as of Q1 2023. This growth trajectory is supported by a solid gross profit margin of 42.54%, indicating efficient operations and a strong market position.
As for InvestingPro Tips, Ares Management Corp has demonstrated a commitment to shareholders by raising its dividend for 4 consecutive years, and it has maintained dividend payments for 11 consecutive years. Moreover, net income is expected to grow this year, which may be an encouraging sign for investors looking at the company's profitability potential. However, it's important to note that 8 analysts have revised their earnings estimates downwards for the upcoming period, suggesting that investors should stay informed about potential changes in the company's performance outlook.
For those seeking more in-depth analysis, there are additional InvestingPro Tips available on the company's profile at https://www.investing.com/pro/ARES. By using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable insights to inform their investment decisions.
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