We wouldn't blame Apollo Global Management, Inc. (NYSE:APO) shareholders if they were a little worried about the fact that James Zelter, the Co-President recently netted about US$2.5m selling shares at an average price of US$51.02. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.0%.
Apollo Global Management Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Marc Rowan, sold US$29m worth of shares at a price of US$43.64 per share. That means that an insider was selling shares at slightly below the current price (US$50.60). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 8.1% of Marc Rowan's holding.
All up, insiders sold more shares in Apollo Global Management than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Apollo Global Management better if I see some big insider buys. While we wait, check out this free list of growing companies 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. We usually like to see fairly high levels of insider ownership. It's great to see that Apollo Global Management insiders own 4.8% of the company, worth about US$1.1b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Apollo Global Management Tell Us?
An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 6 warning signs for Apollo Global Management (1 is a bit concerning!) that we believe deserve your full attention.
Of course Apollo Global Management may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
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