A look at insider transactions at Apollo Commercial Real Estate Finance, Inc. ( NYSE:ARI ) over the last year shows that insiders were net buyers, meaning they bought more shares than they sold.
While we're by no means saying that investors should base their judgement solely on the actions of a company's directors, we think it's entirely logical to keep an eye on insider behavior.
Check out our latest analysis for Apollo Commercial Real Estate Finance
Apollo Commercial Real Estate Finance insider transactions over the past year
Independent Director Robert Kasdin has made the biggest insider purchase in the last 12 months. In this single transaction, US$239,000 worth of shares was purchased at US$9.54 per share. While we welcome the purchase, this purchase was made at significantly below the current price of US$11.07. While this suggests that insiders believe the stock is undervalued at the low price, this transaction doesn't tell us much about what insiders are thinking about the current price.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below: By clicking on the chart you can see all the individual transactions, including the stock price, individual and date.
Insider Trading Volume
There are plenty of other companies where insiders have been buying up shares, so you won't want to miss this free list of growing companies that insiders are buying shares in.
Does Apollo Commercial Real Estate Finance boast high insider ownership?
For common shareholders, it's worth checking how many shares are held by company insiders. We usually like to see a significantly higher insider ownership. Our data indicates that insiders own 0.6% of Apollo Commercial Real Estate Finance shares, worth about US$9.8m. But they could have an indirect interest through corporate structures that we don't know about. We usually like to see a higher insider ownership.
So what does this data tell us about Apollo Commercial Real Estate Finance insiders?
The fact that there have been no insider transactions for Apollo Commercial Real Estate Finance recently does not, of course, trouble us. However, an analysis of transactions over the past year is encouraging. We would like to see individual holdings increase. However, we have not seen anything that would lead us to think that Apollo Commercial Real Estate Finance insiders are suspicious of the company. While it is important to know what's going on with insider ownership and transactions, we also make sure to consider the risks facing a stock before making any investment decisions. At Simply Wall St, we have discovered that Apollo Commercial Real Estate Finance has 4 warning signs (1 of which is concerning!) that you should be aware of before proceeding with your analysis.
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But note: Apollo Commercial Real Estate Finance may not necessarily be the best stock to buy , so take a peek at this free list of interesting companies that have high ROE and low debt.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. Currently, we count only open market transactions and private dispositions of direct interests, not derivative transactions or indirect interests.
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This article by Simply Wall St is of general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell a stock, and does not take into account your objectives or financial situation. We aim to provide long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned herein.