What You Need To Know About Apollo Commercial Real Estate Finance, Inc.’s (NYSE:ARI) Investor Composition
If you want to know who really controls Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI), you need to look at the makeup of the share register. Institutions often own stocks in larger companies, and we expect insiders to own a significant percentage of the smaller companies. Privatized companies tend to have little inside ownership.
Apollo Commercial Real Estate Finance has a market cap of $ 1.5 billion, so we would expect some institutional investors to be aware of the stock. In the graphic below we can see that institutions own shares in the company. Let’s take a closer look at what the different types of shareholders can say about Apollo Commercial Real Estate Finance.
Check out our latest analysis for Apollo Commercial Real Estate Finance
Division of ownership
What does institutional ownership tell us about Apollo Commercial Real Estate Finance?
Institutions usually measure themselves against a benchmark when reporting to their own investors. As a result, they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutes on their register, especially as they grow.
As you can see, institutional investors have a reasonable exposure to Apollo Commercial Real Estate Finance. This suggests some credibility with professional investors. But we cannot rely on this fact alone, as institutions sometimes make bad investments, as everyone does. It’s not uncommon for a large stock price to fall when two large institutional investors are trying to sell a stock at the same time. It is therefore worth checking the earnings trend of Apollo Commercial Real Estate Finance so far (see below). Of course, keep in mind that there are other factors to consider as well.
Profit and sales growth
Since institutional investors own more than half of the shares in issue, the board of directors is likely to need to be mindful of their preferences. Hedge funds don’t have many stakes in Apollo Commercial Real Estate Finance. Our data shows that BlackRock, Inc. is the largest shareholder with 17% of the shares outstanding. The Vanguard Group, Inc. and QH RE Asset Company LLC are the second and third largest shareholders, with 10% and 7.5% of the issued shares, respectively.
The story goes on
We also found that the top 10 shareholders make up more than half of the share register, with some smaller shareholders balancing the interests of the larger to some extent.
Researching institutional ownership is a great way to measure and filter the expected performance of a stock. The same can be achieved by examining the analysts’ feelings. There are a fair number of analysts looking into the stock. Therefore, it can be helpful to find out your overall view for the future.
Inside ownership of Apollo Commercial Real Estate Finance
While the exact definition of an insider can be subjective, almost every board member considers an insider. The top management runs the business, but the CEO responds to the board even if he’s a member.
I generally think that inside ownership is a good thing. In some cases, however, it is more difficult for other shareholders to hold the board of directors accountable for decisions.
Our information suggests that Apollo Commercial Real Estate Finance, Inc. insiders own less than 1% of the company. However, it is possible that insiders have an indirect interest due to a more complex structure. Since this is a large company, even a small proportional stake can bring about a vote between the board of directors and shareholders. In this case, Insider owns $ 7.7 million of shares. It’s always good to see at least some insiders, but it might be worth checking if those insiders have sold.
General public property
At 26%, the general public has some influence on Apollo Commercial Real Estate Finance. While this size of ownership is substantial, it may not be enough to change company policy if the decision is not synchronized with other major shareholders.
We can see that private companies own 7.5% of the shares in issue. Private companies can be affiliated companies. Sometimes insiders have an interest in a public company through an interest in a private company rather than in their own capacity as an individual. While it is difficult to draw broad conclusions, it is worth noting that this is an area for further research.
While it is worth looking at the different groups that own a business, there are other factors that are even more important. Case in point: we have discovered 4 warning signs for Apollo Commercial Real Estate Finance You should be aware of this, and 2 of them matter.
But in the end It is the future, not the past that will determine how well the owners of this business will perform. As such, we think it wise to take a look at this free report, which shows whether analysts are predicting a brighter future.
NB: The figures in this article are calculated using data from the last twelve months, which refers to the twelve month period ending on the last date of the month in which the financial statements are dated. This may not match the fiscal year numbers for the full year.
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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