Ares Management Corp (NYSE:ARES) Head of Credit Group, R. Kipp deVeer, has sold a significant amount of company stock, according to a recent filing with the Securities and Exchange Commission. On July 22, deVeer parted with 41,676 shares of Class A Common Stock at an average price of $150.21, netting a total of $6,260,151 from the sale.
The transactions were carried out in multiple trades, with prices ranging from $150.00 to $150.54. This information comes from a footnote in the filing, which also states that deVeer is willing to provide full details of the shares sold at each price upon request. It's worth noting that the sales were executed under a pre-arranged 10b5-1 trading plan, which was adopted on February 28, 2024.
Following the sale, deVeer still maintains a substantial stake in the company, owning 1,075,000 restricted units under an equity incentive plan. These units, which are equivalent to Class A Common Stock upon vesting, highlight a continued alignment with the company's long-term performance.
Investors and market watchers often monitor insider transactions as they can provide insights into an executive's view of the company's future prospects. However, it's important to consider that trading plans like deVeer's are typically put in place well in advance of any transactions and may not necessarily reflect immediate views on the company's future.
Ares Management Corp, an investment management firm based in Los Angeles, has not issued any comments regarding the transaction at this time.
In other recent news, Ares Management Corporation has successfully raised an additional $52.92 million from a recent stock sale, bringing the total net proceeds from its latest offering to approximately $408.21 million. The funds are expected to support Ares Management's strategic initiatives and growth plans. In addition, the company has also announced a public offering of 2,650,000 shares of its Class A common stock, intending to use the proceeds for general corporate activities.
Analyst firms have updated their ratings and price targets for Ares Management. Jefferies maintains a Hold rating and has revised the company's price target to $139, after adjusting the company's second-quarter and full-year 2024 income estimates. TD (TSX:TD) Cowen has maintained a Buy rating with a price target of $168.00, noting the company's proficiency in executing deals swiftly after capital raises. Deutsche Bank (ETR:DBKGn), however, revised its rating to Hold from Buy, setting a new price target of $132.00, due to a correction in the share count used in their previous valuation model.
These developments come amidst Ares Management's recent performance report, showing the firm managing approximately $428 billion in assets. The company's Fee-Related Earnings (FRE) for the second quarter are expected to be around $320 million, with net realized performance fees estimated at $35 million.
InvestingPro Insights
Amidst the news of R. Kipp deVeer's stock sale, Ares Management Corp's (NYSE:ARES) market performance and financial health remain of significant interest to investors. The company's recent metrics, as per InvestingPro data, show a robust market capitalization of $47.0 billion, indicating a solid position in the market. However, ARES is currently trading at a high P/E ratio of 65.78, which may raise some eyebrows among value-focused investors. This is further accentuated by an adjusted P/E ratio for the last twelve months as of Q1 2024, which stands at an even higher 82.83.
On the upside, ARES has a PEG ratio of 0.7 for the same period, suggesting that its earnings growth could potentially justify the higher P/E ratio. This aligns with one of the InvestingPro Tips, which notes that ARES is trading at a low P/E ratio relative to near-term earnings growth. Additionally, the company has shown an 11.8% revenue growth over the last twelve months as of Q1 2024, reflecting its ability to increase its earnings.
Investors considering ARES's long-term potential may find solace in the company's track record of maintaining dividend payments for 11 consecutive years, as well as the fact that it has raised dividends for four consecutive years. The dividend yield as of the second half of 2024 stands at 2.47%, with a notable dividend growth of 20.78% over the last twelve months as of Q1 2024.
For those looking for more comprehensive analysis and additional insights, InvestingPro offers a range of tips, including the company's trading patterns and analyst predictions. There are 14 more InvestingPro Tips available for ARES, which can be accessed at https://www.investing.com/pro/ARES. Interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing a deeper dive into ARES's financials and market performance.
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