Insider Selling Alert: Ares Management Co-Founder Sells $8 Million Worth of Shares
A recent SEC filing has revealed that David B. Kaplan, Co-Founder of Ares Management Corp (NYSE: ARES), sold a significant portion of his holdings in the company, totaling $8,104,233. The sales were made in multiple transactions between August 28 and August 30, with prices ranging from $144.63 to $146.34 per share.
Kaplan's transactions were executed according to a Rule 10b5-1 trading plan, which allows insiders to sell stocks based on a predetermined schedule. Despite selling all his direct holdings, Kaplan still maintains an indirect stake in the company through Ares Owners Holdings L.P.
Investors often watch insider selling for clues about a company's future performance. In related news, the NFL has approved private equity firms, including Ares Management, to acquire up to 10% stakes in its teams. Ares Management has been rated Neutral by Redburn-Atlantic with a price target of $140.00, but TD Cowen raised its price target to $162.00, indicating a positive outlook.
Ares Management reported a 21% increase in its third-quarter dividend and $447 billion in assets under management, up 18% year-over-year. The company plans to launch new products in the private wealth channel and explore M&A opportunities.
InvestingPro Insights: Ares Management has a market cap of $45.72 billion and a high P/E ratio of 73.46, suggesting the stock may be trading at a premium. Despite revenue declines, the company maintains a strong gross profit margin of 48.01%.
Key Tips: Ares Management has a history of dividend payments and is predicted to be profitable this year, balancing concerns over insider selling. Investors can access additional tips for informed decisions through InvestingPro.
In conclusion, while insider transactions provide valuable insights, they should be part of a broader investment strategy. With InvestingPro offering a comprehensive toolset for analysis, investors can make informed decisions about Ares Management and its future prospects.