Have Insiders Sold Apollo Global Management Shares Recently?

We wouldn't blame Apollo Global Management, Inc. (NYSE:APO) shareholders if they were a little worried about the fact that Leon Black, a company insider, recently netted about US$173m selling shares at an average price of US$173. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.4%.

View our latest analysis for Apollo Global Management

The Last 12 Months Of Insider Transactions At Apollo Global Management

In fact, the recent sale by Leon Black was the biggest sale of Apollo Global Management shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$178, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 2.4% of Leon Black's holding.

Over the last year, we can see that insiders have bought 3.27k shares worth US$347k. On the other hand they divested 4.02m shares, for US$541m. All up, insiders sold more shares in Apollo Global Management than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Apollo Global Management insiders own about US$21b worth of shares (which is 21% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Apollo Global Management Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. But since Apollo Global Management is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Apollo Global Management has 1 warning sign we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.