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Michael J. Arougheti, co-founder, CEO and president of Ares Management Corp (NYSE:), recently sold a significant portion of his shares in the company. According to the latest filings, Arougheti sold shares for a total of 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 next day, March 15, Arougheti continued selling, with 30,326 shares at an average price of $132.18, 8,066 shares at an average price of $133.34, and a smaller lot of 800 shares at an average price of $134.19.
These sales were executed according to a pre-established 10b5-1 trading plan, adopted on December 14, 2023. Such plans allow company insiders to set a pre-determined schedule for buying or selling shares to avoid insider accusations trading.
In addition to the sales, on March 15 the CEO purchased 175,000 Class A ordinary shares free of charge. This transaction relates to the Ares Operating Group Units and is part of an exchange agreement that allows the Operating Group’s partnership units Ares to be exchanged for Class A common stock on a one-for-one basis. These shares are held indirectly through Ares Owners Holdings LP, of which Arougheti is a limited partner.
Following these transactions, Arougheti’s direct ownership in Ares Management Corp remains substantial, with more than 1.3 million shares still held after the reported sales. 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 observers closely monitor insider transactions as they can provide insight into the insider’s view of the company’s future prospects. However, such transactions are not always indicative of a change in business strategy or performance.
Ares Management Corp, headquartered in Los Angeles, California, specializes in providing investment advice and is recognized as a leader in the global alternative investment management industry.
Insights on InvestingPro
Following the recent stock sale by Ares Management Corp CEO Michael J. Arougheti, investors may be curious about the company’s performance and prospects. Here are some insights based on real-time data and tips from InvestingPro:
The company’s market capitalization stands at a whopping $40.28 billion, reflecting its significant presence in the investment management industry. Despite a high P/E ratio of 53.35, Ares Management Corp has shown impressive revenue growth of 18.87% over the trailing twelve months as of Q1 2023. This growth trajectory is supported by a solid margin gross profit of 42.54%, indicating efficient operations and a strong market position.
As per InvestingPro Tips, Ares Management Corp has demonstrated commitment to shareholders by increasing the dividend for 4 consecutive years and has maintained dividend payments for 11 consecutive years. Additionally, net income is expected to grow this year, which could be an encouraging sign for investors looking at the company’s profitability potential. However, it is important to note that 8 analysts have revised down their earnings estimates for the coming period, suggesting that investors should keep informed about potential changes in the company’s performance outlook.
For those looking for a more in-depth analysis, additional InvestingPro tips can be found on the company profile at https://www.investing.com/pro/ARES. Using the coupon code PRONEWS24Readers can get an additional 10% discount on an annual or two-year Pro and Pro+ subscription, unlocking even more valuable insights to inform their investment decisions.
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