R. Kipp deVeer, head of Ares Management Corp’s (NYSE: ) credit group, has sold a large amount of company stock, according to a recent filing with the U.S. Securities and Exchange Commission. On July 22, deVeer sold 41,676 shares of Class A common stock at an average price of $150.21, for a total sale price of $6,260,151.
The trades were made across multiple trades, with prices ranging from $150.00 to $150.54. The information comes from a footnote in the filing, which also states that deVeer is willing to provide complete details of the shares sold at each price upon request. Notably, the sale was executed under a prearranged 10b5-1 transaction plan, which was adopted on February 28, 2024.
Following the sale, deVeer retained a substantial stake in the company, owning 1,075,000 restricted units under the equity incentive plan. The units, when vesting, are equivalent to shares of Class A common stock, highlighting continued alignment with the company’s long-term performance.
Investors and market watchers often monitor insider trading because they can provide insight into how senior executives feel about a company’s future prospects. However, it’s important to consider that trading plans like deVeer’s are typically developed in advance of any deal and don’t necessarily reflect an immediate view of the company’s future.
Los Angeles-based investment management firm Ares Management Corp has yet to comment on the deal.
In other recent news, Ares Management Corporation successfully raised $52.92 million through a recent stock sale, bringing 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 also announced a public offering of 2,650,000 Class A common shares and intends to use the proceeds for general corporate activities.
The analyst firm updated its rating and target price on Ares Management. Jefferies maintained its hold rating and lowered its price target on the company to $139 after revising its second-quarter and full-year 2024 revenue forecasts. TD Cowen maintained a Buy rating with a price target of $168.00, citing the company’s ability to execute transactions quickly after raising capital. However, due to a revision to the share count used in the previous valuation model, Deutsche Bank adjusted its rating to Hold from Buy and set a new price target of $132.00.
The developments came in Ares Management’s most recent results report, which showed the firm has about $428 billion in assets under management. The company’s second-quarter fee-related earnings (FRE) are expected to be approximately $320 million, with net realized performance fees expected to be $35 million.
Investment Professional Insights
Ares Management Corp (NYSE:ARES)’s market performance and financial health remain of great interest to investors following the news that R. Kipp deVeer is selling shares. According to InvestingPro, the company’s most recent indicator puts it at a market capitalization of $47 billion, showing that its position in the market is solid. However, ARES currently trades at a P/E ratio of 65.78x, which may concern value-focused investors. This is further underscored by an adjusted price-to-earnings ratio of 82.83 for the trailing twelve months to Q1 2024.
On the bright side, ARES has a PEG ratio of 0.7 over the same period, suggesting that its earnings growth may justify a higher P/E ratio. This is consistent with one of InvestingPro’s tips, which states that ARES’s price-to-earnings ratio is low relative to recent earnings growth. Additionally, the company’s revenue grew 11.8% in the trailing 12 months ended Q1 2024, reflecting its ability to grow earnings.
Investors considering ARES’ long-term potential may find comfort in the fact that the company has an 11-year track record of maintaining dividend payments and has raised its dividend four years in a row. The dividend yield through the second half of 2024 is 2.47%, with significant dividend growth of 20.78% in the past 12 months through the first quarter of 2024.
For those looking for a more comprehensive analysis and more insights, InvestingPro offers a range of tips, including the company’s trading patterns and analyst forecasts. There are also 14 InvestingPro tips for ARES, accessible at https://www.investing.com/pro/ARES. Interested readers can use the discount code PRONEWS24 Gain greater insight into ARES’ financial and market performance with discounts of up to 10% on annual Pro subscriptions and annual or two-year Pro+ subscriptions.
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