Co-founder of Ares Management Sells More Than $10 Million in Stock, Reports

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Co-founder of Ares Management Sells More Than  Million in Stock, Reports

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Ares Management Corp (NYSE:) co-founder David B. Kaplan has sold a significant portion of his stake in the company, according to the latest regulatory filings. Over the course of several days, Kaplan sold his shares in a series of transactions totaling more than $10.35 million.

The sales, which took place between March 15 and 19, 2024, resulted in multiple transactions at varying prices. On March 15, shares were sold at prices ranging from $131.99 to $133.98. Subsequent trades saw the shares sold at prices ranging from $129.60 to $134.33 on different days, with the lowest average price being $130.07 on March 19 and the highest being $134.16 on March 15.

Despite these substantial sales, Kaplan, through indirect ownership of Trently Holdings, LLC, retains a significant ownership interest in Ares Management Corp. The sales were executed pursuant to a 10b5-1 trading plan, a pre-established trading plan that allows insiders to publicly-traded companies to sell their shares at a predetermined time to avoid felony charges. initiated.

The transactions are part of Kaplan’s financial strategy and provide insight into the business activities of the investment advisory firm’s top executives. Ares Management Corp, headquartered in Los Angeles, California, specializes in providing investment advice and is recognized for its expertise in various asset classes.

Investors and market observers often pay close attention to insider sales for clues about executives’ confidence in their company’s prospects. It is important to note, however, that such sales may be motivated by a variety of personal financial planning reasons and do not necessarily indicate a negative outlook on the future performance of the business.

Following the sales, Kaplan shares held indirectly by Ares Owners Holdings LP amount to 1,180,052 shares of Class A common stock and 9,171,596 units of the Ares operating group, which are exchangeable for shares of Class A common stock on a one-for-one basis, as per the terms of the exchange agreement.

Investors are reminded that trading plans and sales of shares are standard financial transactions for persons in Kaplan’s position and cannot be indicative of the company’s operating performance or future market movements. stock prices.

InvestingPro Insights

In light of David B. Kaplan’s recent stock sales, Ares Management Corp (NYSE:ARES) remains a company with several notable financial metrics and analyst expectations. According to the latest data from InvestingPro, Ares Management Corp has a market capitalization of $40.98 billion, reflecting its substantial presence in the investment advisory industry.

One of the InvestingPro Tips for Ares highlights the company’s ability to maintain and grow its dividend, having increased it for 4 consecutive years and maintained payments for 11 consecutive years. This trend indicates a stable financial strategy and commitment to shareholder returns. Additionally, even though some analysts have lowered their earnings expectations, Ares is expected to see net income growth this year, which could be a positive signal for investors looking at the company’s profitability potential .

From a valuation perspective, Ares is trading at a high price-to-book multiple of 21.61 over the trailing twelve months ending Q4 2023. However, it is also important to note that the PEG ratio at from the same period stood at 0.31, suggesting that the company’s PEG earnings growth ratio may be undervalued compared to its peers. This juxtaposition of a high price-to-book multiple with a low PEG ratio can present a nuanced picture to potential investors.

For those who want to know more, there are InvestingPro Tips available, which can provide a more in-depth analysis of Ares Management Corp.’s financial health and future prospects. By using the promo code PRONEWS24, readers can receive an additional 10% off a Pro and Pro+ annual or bi-annual subscription, opening up access to these valuable tips. Visit InvestPro for more details.

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