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The series of transactions began on March 20, 2024, with Arougheti selling 2,300 shares at an average price of $131.81. On the same day, further sales were executed, including 9,349 shares at a weighted average price of $132.70 and 8,100 shares at $133.48 per share. The sales continued on March 21, with 1,071 shares going for an average of $134.84, followed by 1,800 shares at $135.83, and substantial sales of 34,567 shares at $136.75 and 19,119 shares at $137.45 each. The final transactions took place on March 22, with 8,413 shares sold at an average price of $134.05, 6,837 shares at $135.22, and a smaller sale of 100 shares at $136.17.
The sales were conducted under a prearranged 10b5-1 trading plan, which was adopted by Arougheti or a vehicle controlled by him on December 14, 2023. This plan allows corporate insiders to set up a trading schedule for selling stocks they own, in compliance with insider trading laws.
Following these transactions, Arougheti’s directly owned stake in Ares Management has decreased, although he still indirectly controls a significant number of shares through Atticus Enterprises LLC. Additionally, he holds 1,375,000 restricted units granted under an equity incentive plan, which will convert to shares of Class A Common Stock upon vesting.
Investors often monitor insider transactions for insights into how executives perceive the company’s value and prospects. With these recent sales, Arougheti has capitalized on the current market prices, although the reasons behind the sales have not been disclosed.
As investors digest the news of Michael Arougheti’s recent transactions, Ares Management Corp’s (NYSE:ARES) financial metrics provide further context to understand the company’s current valuation and performance. An InvestingPro Tip that stands out in relation to the CEO’s trading activity is the company’s consistent history of dividend payments. ARES has not only raised its dividend for 4 consecutive years but has also maintained these payments for 11 consecutive years, which could be a signal of the company’s commitment to shareholder returns.
From a valuation perspective, Ares Management is trading at a high Price / Book multiple of 21.89 as of the last twelve months ending Q4 2023. Despite this, the company’s PEG Ratio during the same period stands at 0.32, suggesting that the market might be pricing its shares at a discount relative to the near-term earnings growth potential. This is further underscored by the company’s P/E ratio, which, at 54.42, indicates that ARES is trading at a low multiple relative to its expected earnings growth.
On the performance front, Ares Management has demonstrated substantial revenue growth of 18.87% over the last twelve months as of Q4 2023. This is complemented by a robust 3-month price total return of 16.41%, which may have presented an opportune moment for Arougheti’s stock sale.
For investors seeking a deeper dive into Ares Management’s financials and future outlook, InvestingPro offers additional insights. There are 14 more InvestingPro Tips available, which can help investors make more informed decisions. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription and unlock the full potential of the financial data and expert analysis that InvestingPro provides.
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