Don't Ignore The Insider Selling In Apollo Global Management

We wouldn't blame Apollo Global Management, Inc. (NYSE:APO) shareholders if they were a little worried about the fact that Martin Kelly, the CFO & Partner recently netted about US$2.2m selling shares at an average price of US$145. That's a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Apollo Global Management

In the last twelve months, the biggest single sale by an insider was when the insider, Leon Black, sold US$173m worth of shares at a price of US$175 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$139. So it is hard to draw any strong conclusion from it.

Over the last year, we can see that insiders have bought 1.47k shares worth US$178k. On the other hand they divested 3.26m shares, for US$505m. Over the last year we saw more insider selling of Apollo Global Management shares, than buying. They sold for an average price of about US$155. We are not joyful about insider selling. However, we do note that the average sale price was significantly higher than the current share price (which is US$139). You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Apollo Global Management

I will like Apollo Global Management better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Apollo Global Management

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Apollo Global Management insiders own 20% of the company, currently worth about US$16b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Apollo Global Management Tell Us?

Insiders sold Apollo Global Management shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for Apollo Global Management you should be aware of.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.