Independent Director Of Apollo Commercial Real Estate Finance Sold 49% Of Their Shares

We'd be surprised if Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) shareholders haven't noticed that the Independent Director, Scott Prince, recently sold US$403k worth of stock at US$10.07 per share. That sale was 49% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Apollo Commercial Real Estate Finance

Apollo Commercial Real Estate Finance Insider Transactions Over The Last Year

In fact, the recent sale by Scott Prince was the biggest sale of Apollo Commercial Real Estate Finance shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$10.17). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 49% of Scott Prince's holding.

Apollo Commercial Real Estate Finance insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.6% of Apollo Commercial Real Estate Finance shares, worth about US$8.9m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

So What Do The Apollo Commercial Real Estate Finance Insider Transactions Indicate?

An insider hasn't bought Apollo Commercial Real Estate Finance stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. We'd certainly practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Apollo Commercial Real Estate Finance. To that end, you should learn about the 4 warning signs we've spotted with Apollo Commercial Real Estate Finance (including 1 which is potentially serious).

But note: Apollo Commercial Real Estate Finance may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.