Berry Ryan, Chief Marketing and Strategy Officer at Ares Management Corp (NYSE:ARES), recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Ryan sold 1,671 shares of Class A Common Stock on November 11, 2024. The shares were sold at a weighted average price of $175.00, resulting in a total transaction value of $292,425.
Following this transaction, Ryan retains a direct ownership of 253,214 shares. Additionally, he holds shares indirectly through various accounts, including a retirement savings plan and a spouse's SEP IRA. The transaction was carried out under a 10b5-1 trading plan, which was adopted earlier in June 2024.
In other recent news, Ares Management Corporation has demonstrated robust growth in its third-quarter earnings. The company reported an 18% rise in management fees, a 24% increase in fee-related earnings, and a 28% growth in realized income. Ares has also been active in the global market, deploying nearly $30 billion in the quarter, contributing to a total of $74.6 billion for the year. Record-breaking fundraising efforts have also been noted, with nearly $21 billion raised in the third quarter alone.
RBC (TSX:RY) Capital Markets recently updated its outlook on Ares Management, increasing the price target to $185 from the previous $170 while maintaining an Outperform rating on the company's shares. Despite the analyst from RBC Capital slightly revising down the Earnings Per Share (EPS) estimates, the firm's potential resilience in fundraising was highlighted as a key factor in maintaining a positive outlook on the stock.
However, Ares Management expects a decrease in the Fee-Related Earnings (FRE) margin to around 40% in Q4 due to various factors, including increased compensation costs. Despite this, the company projects strong Q4 performance with anticipated fee-related performance revenues between $160 million and $170 million and expects continued growth in Assets Under Management (AUM) and performance income in 2025 and beyond. These recent developments underscore a period of strong performance and optimism for Ares.
InvestingPro Insights
The recent sale of shares by Berry Ryan, Chief Marketing and Strategy Officer at Ares Management Corp (NYSE:ARES), comes at a time when the company's stock is trading near its 52-week high. According to InvestingPro data, ARES is currently priced at 97.02% of its 52-week high, with a previous closing price of $171.38.
This sale occurs against a backdrop of strong performance for ARES. InvestingPro Tips highlight that the company has delivered a high return over the last year, with a one-year price total return of 61.33%. Additionally, ARES has shown a strong return over the last three months, with a 21.23% price total return for that period.
Investors should note that ARES has maintained dividend payments for 11 consecutive years and has raised its dividend for 5 consecutive years, as per InvestingPro Tips. The current dividend yield stands at 2.18%, with a notable dividend growth of 20.78% over the last twelve months as of Q3 2024.
While the company's performance has been robust, it's worth mentioning that ARES is trading at a high earnings multiple, with a P/E ratio of 76.72. This valuation metric, combined with the fact that 10 analysts have revised their earnings downwards for the upcoming period, may be factors for investors to consider.
For those interested in a more comprehensive analysis, InvestingPro offers 7 additional tips for ARES, providing a deeper insight into the company's financial health and market position.
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