Insider trades can give investors a more complete view of activity within the world’s publicly-listed companies. No one has more information in relation to a company’s prospects than its executives and directors.
In this report, we are going to highlight some interesting insider buying at Apollo Global Management Inc (APO:US). Apollo Global Management is a US-based financial services company that has a focus on alternative investments. One of the world’s largest alternative investment managers, it manages capital for pension funds, sovereign wealth funds, university endowments, charitable foundations, financial institutions, and family offices. The company is listed on the New York Stock Exchange and currently has a market cap of $31.59 billion.
Insider buying at Apollo Global Management
Our data shows that on August 30, Board member Jay Clayton picked up 5,000 shares at a price of $56.07 per share. This trade cost the insider approximately $280,000 and increased his holding to 29,737 shares.
Expertise in the capital markets
Mr. Clayton – who was appointed in March 2021 – has considerable experience in the financial services industry. Previously, he served as Chair of the US Securities and Exchange Commission (SEC) from May 2017 through December 2020. In addition to chairing the SEC, he was a member of the President’s Working Group on Financial Markets, the Financial Stability Oversight Council and the Financial Stability Board. Given his background, and knowledge of private and public capital markets, he is likely to have a good understanding of Apollo’s prospects.
Holding up well in a challenging environment
While 2022 has been challenging for investment management companies due to the fall in asset values globally, Apollo has delivered a solid performance.
In the second quarter of 2022, the company generated record quarterly fee related earnings (FRE) of $341 million, up 7% year on year, supported by inflows into its funds, increased premiums from Athene, and additional fees booked following the completion of its acquisition of Griffin Capital. And at the end of the period, AUM stood at $515 billion, up from $472 billion a year earlier.
“Our second quarter results demonstrate the resilience of our earnings and strength of our integrated model amid challenging markets,” commented CEO Marc Rowan. “We are well positioned to capitalize on dislocation and remain focused on executing our strategic plan across origination, global wealth, and capital solutions to deliver for our shareholders,” he added.
This year, Apollo Global Management shares have experienced a significant pullback. And this had left the stock trading at a low multiple. Currently, the forward-looking P/E ratio here is just 10.
Clearly, Mr. Clayton sees value in the stock right now. We see the insider buying activity as a bullish indicator.