ASHISH BHUTANI Of Ares Management Shows Optimism, Buys $1.41M In Stock

In a recent SEC filing, it was revealed that ASHISH BHUTANI, Board Member at Ares Management ARES, made a noteworthy insider purchase on March 14,.

What Happened: BHUTANI's recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday, involves purchasing 10,000 shares of Ares Management. The total transaction value is $1,413,300.

Ares Management shares are trading up 2.23% at $143.32 at the time of this writing on Friday morning.

About Ares Management

Ares Management Corp is an asset management company. It offers investors investment-related advice and strategies for capital growth. The company's operating segments include Credit Group, Private Equity Group, Real Assets, Secondaries Group, and Others. Its Credit Group generates maximum revenue and manages credit strategies across the liquid and illiquid spectrum. Private Equity Group manages investment strategies categorized as corporate private equity, infrastructure and power, and special opportunities, Real Estate Group manages comprehensive equity and debt strategies across real estate & infrastructure investments. The Secondaries Group invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate, infrastructure, & credit.

Breaking Down Ares Management's Financial Performance

Revenue Growth: Ares Management displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 7.8%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Evaluating Earnings Performance:

• Gross Margin: The company sets a benchmark with a high gross margin of 71.19%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Ares Management's EPS reflects a decline, falling below the industry average with a current EPS of 0.72.

Debt Management: With a high debt-to-equity ratio of 6.31, Ares Management faces challenges in effectively managing its debt levels, indicating potential financial strain.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 68.72 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 5.35 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 16.99 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Why Insider Activity Matters in Finance

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Breaking Down the Significance of Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Ares Management's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.