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Recent reports indicate that Michael Arougheti, co-founder, CEO and chairman of Ares Management Corp (NYSE:) has sold a significant portion of his stake in the company. In three days, Arougheti traded over $7.8 million worth of shares, with single trades ranging from $143.65 to $145.41.
The series of transactions began on August 20, 2024, when Arougheti sold 15,110 shares of Class A common stock at an average price of $144.18, followed by another 4,500 shares at an average price of $144.71. On August 21, the selling continued, with the CEO selling 5,512 shares at an average price of $143.65, 10,100 shares at $144.33, and a smaller number of 83 shares at $145.41. On the last day, August 22, Arougheti sold 13,247 shares at an average price of $144.02 and 6,024 shares at an average price of $144.63.
The trades were made pursuant to a 10b5-1 trading plan that was adopted by Arougheti or entities he controls on Dec. 14, 2023. Such plans allow insiders to sell stock during predetermined periods of time, providing a defense to possible charges of trading on material, nonpublic information.
Following this sale, Arougheti still holds a significant amount of Ares Management Corp stock, including 1,375,000 restricted units granted under the equity incentive plan, which vest in installments in accordance with the applicable award agreement.
Investors often closely monitor insider sales because they can provide insight into how executives view their companies’ future performance. However, such sales can also be part of regular financial planning or a diversification strategy and do not necessarily indicate a lack of confidence in the company.
Ares Management Corp has not yet commented on the transaction.
In other recent news, Automated Industrial Robotics Inc. (AIR) has acquired UK-based Sewtec Automation, a step toward expanding its global reach and engineering capabilities. The acquisition, which was made by private equity funds managed by Ares Management, is in line with AIR’s strategy to meet the growing demand for international manufacturing automation solutions.
Meanwhile, Hyatt Hotels Corp. sold the Hyatt Regency Orlando and an adjacent parcel of land to RIDA Development and Ares Management Real Estate Fund for approximately $1.07 billion. The transaction is in line with Hyatt’s strategy to divest its owned properties, which generated $2.6 billion in total revenue over the past three years.
In terms of financial analysis, TD Cowen raised its target price from $158.00 to $162.00, showing confidence in Ares Management. Ares Management also declared a third-quarter common dividend of $0.93 per share, up 21% year-over-year, and assets under management hit a record high of $447 billion, up 18% year-over-year.
These latest developments highlight the strategic initiatives of AIR, Hyatt Hotels Corporation and Ares Management Corporation and reflect their ongoing efforts to optimize operations and create value.
Investment professional tips
Ares Management Corp (NYSE:ARES) is showing mixed financials following news of CEO Michael Arougheti’s recent stock sale. According to InvestingPro, Ares has a market cap of $44.97 billion, reflecting its significant position in the asset management industry. The company’s P/E ratio is high at 73.1, which could indicate that the stock is trading at a premium compared to its earnings. Additionally, the company’s P/E ratio is 5.12, indicating that investors expect future growth to be higher than current earnings.
InvestingPro’s recommendation for ARES indicates that analysts have lowered earnings estimates, with 10 analysts cutting their earnings forecasts for the period ahead. This is consistent with the CEO’s recent divestment, which could suggest a cautious move in the face of a challenging earnings outlook. However, it is also worth noting that Ares has a good track record of maintaining dividend payments, with 4 consecutive years of dividend increases and 11 consecutive years of dividend maintenance, which could be a sign of the company’s commitment to shareholder returns.
For those considering investing in Ares Management Corp, there are 11 additional InvestingPro tips that provide more detailed information about the company’s financial health and its future prospects. These tips can be viewed at https://www.investing.com/pro/ARES and provide valuable information to make more informed investment decisions.
This article was generated with the support of artificial intelligence and reviewed by an editor. For more information, please see our terms and conditions.
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