Possible Bearish Signals With Apollo Commercial Real Estate Finance Insiders Disposing Stock

Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Apollo Commercial Real Estate Finance

Apollo Commercial Real Estate Finance Insider Transactions Over The Last Year

The Independent Director, Scott Prince, made the biggest insider sale in the last 12 months. That single transaction was for US$403k worth of shares at a price of US$10.10 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$8.70. So it may not shed much light on insider confidence at current levels.

Insiders in Apollo Commercial Real Estate Finance didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Apollo Commercial Real Estate Finance insiders own about US$8.0m worth of shares (which is 0.6% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

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

The fact that there have been no Apollo Commercial Real Estate Finance insider transactions recently certainly doesn't bother us. Our analysis of Apollo Commercial Real Estate Finance insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. 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. When we did our research, we found 2 warning signs for Apollo Commercial Real Estate Finance (1 doesn't sit too well with us!) that we believe deserve your full attention.

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.