Stock Analysis

One Apollo Commercial Real Estate Finance Insider Raised Stake By 41% In Previous Year

NYSE:ARI
Source: Shutterstock

Looking at Apollo Commercial Real Estate Finance, Inc.'s (NYSE:ARI ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Apollo Commercial Real Estate Finance

Apollo Commercial Real Estate Finance Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Robert Kasdin for US$239k worth of shares, at about US$9.54 per share. Even though the purchase was made at a significantly lower price than the recent price (US$11.09), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:ARI Insider Trading Volume December 6th 2023

Apollo Commercial Real Estate Finance is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Apollo Commercial Real Estate Finance

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.6% of Apollo Commercial Real Estate Finance shares, worth about US$9.3m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Apollo Commercial Real Estate Finance Insiders?

The fact that there have been no Apollo Commercial Real Estate Finance insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Apollo Commercial Real Estate Finance insiders are doubting the company. While we like knowing 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. Our analysis shows 2 warning signs for Apollo Commercial Real Estate Finance (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing.

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.