Several Insiders Invested In Apollo Commercial Real Estate Finance Flagging Positive News
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI), that sends out a positive message to the company’s shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Apollo Commercial Real Estate Finance Insider Transactions Over The Last Year
The Independent Director Robert Kasdin made the biggest insider purchase in the last 12 months. That single transaction was for US$239k worth of shares at a price of US$9.54 each. That means that an insider was happy to buy shares at around the current price of US$10.35. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. In this case we’re pleased to report that the insider purchases were made at close to current prices.
Apollo Commercial Real Estate Finance insiders may have bought shares in the last year, but they didn’t sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Apollo Commercial Real Estate Finance insiders own 0.6% of the company, worth about US$8.8m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
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. However, our analysis of transactions over the last year is heartening. The transactions are fine but it’d be more encouraging if Apollo Commercial Real Estate Finance insiders bought more shares in the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Apollo Commercial Real Estate Finance. Be aware that Apollo Commercial Real Estate Finance is showing 4 warning signs in our investment analysis, and 1 of those doesn’t sit too well with us…
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, but not derivative transactions.
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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.