Need To Know: Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) Insiders Have Been Buying Shares
We haven’t counted the number of times insiders have accumulated stakes in a company that is doing significantly better. The downside of this is that there aren’t just a few examples of insiders dumping stocks before a period of poor performance. As a result, shareholders may want to know whether insiders bought or sold shares of Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI).
What is Insider buying?
Most investors know that it is perfectly acceptable for company directors such as directors to buy and sell shares in the company. However, most countries require the company to disclose such transactions to the market.
We would never suggest that investors base their decisions solely on what a company’s directors have done. But we would also consider it foolish to ignore insider trading altogether. As Peter Lynch said, “Insiders could sell their stocks for a number of reasons, but they are buying them for only one thing: they think the price will go up”.
Check out our latest analysis for Apollo Commercial Real Estate Finance
The last 12 months of insider trading with Apollo Commercial Real Estate Finance
The largest single buy by an insider in the past twelve months was when Director Eric Press bought $ 660,000 of shares at $ 6.85 per share. Although the purchase was made at a significantly lower price than its most recent price ($ 11.18), we still think insider buying is positive. While this suggests that insiders are viewing the stock as undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.
For the past twelve months, Apollo Commercial Real Estate Finance insiders have bought but not sold stocks. The following table shows the insider transactions (by companies and individuals) over the past year. Click on the graphic below to see the exact details of each Insider Transaction!
NYSE: ARI Insider Trading Volume February 1, 2021
There are always plenty of stocks that insiders buy. If that suits your style, you can check or take a look at each inventory individually free List of companies. (Note: Insiders bought them).
Does Apollo Commercial Real Estate Finance have high insider ownership?
Many investors like to examine how much of a company is owned by insiders. We usually like to see a pretty high level of inside ownership. According to our data, insiders own 0.6% of Apollo Commercial Real Estate Finance shares valued at around $ 8.9 million. However, we note that insiders may have an indirect interest through a private company or other corporate structure. We generally prefer a higher level of inside ownership.
What does this data suggest to Apollo Commercial Real Estate Finance Insider?
There has been no insider trading in the past three months – that doesn’t mean much. However, our analysis of transactions over the past year is encouraging. We would like to see larger individual holdings. However, we don’t see anything that leads us to believe that Apollo Commercial Real Estate Finance insiders have doubts about the company. So, these insider deals can help us build a thesis about the stock, but it is also worth knowing the risks this company faces. Every business has risks and we have discovered 4 warning signs for Apollo Commercial Real Estate Finance (2 of which make us uncomfortable!) you should know.
But note: Apollo Commercial Real Estate Finance may not be the best stock to buy. So take a look at it free List of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are persons who report their transactions to the competent supervisory authority. We currently consider open market transactions and private sales, but not derivative transactions.
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This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
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