Apollo Global Management
Overview
Business: Apollo is a leading asset management firm specializing in alternative investments like credit, private equity, and real assets.
AUM: As of 2022, it managed $548 billion in assets.
Client Base: Pension funds, sovereign wealth funds, financial endowments, institutional, and individual investors.
Key Financial Highlights (Q3 2024):
Revenue: $7.72B (↑ 285.13% YoY)
Net Income: $811M (↑ 18.91% YoY)
EPS (Diluted): $1.29 (↑ 17.27% YoY)
Net Profit Margin: 10.51% (↓ 69.12% YoY)
Earnings Calls: EPS beat by 7.3%; Revenue beat by 2.9%.
Observation: Strong revenue growth and solid earnings beat indicate operational performance strength, despite a drop in profit margin.
Stock Performance:
52-Week Range: $89.76 – $189.49.
Recent Developments: Added to the S&P 500 index, which may increase institutional investor interest.
Investment Activity: Kovitz Investment Group purchased 31,803 shares worth $3.83M recently.
Insider Trading:
Recent Insider Activity (Last 3 Months):
Shares Bought: 12,093.
Shares Sold: 1,600,414.
Net Activity: (-1,588,321).
Leon Black (Major Shareholder): Sold 1M shares for $173.48M (2.4% of holdings). Retains ~40.6M shares directly and indirectly.
Insider Ownership: Insiders collectively own $21B (~21% of the company).
Observation: High insider ownership aligns management interests with shareholders. Recent selling by Leon Black might raise concerns but is not necessarily a strong negative signal.
Growth Initiatives:
Private Equity Fund: Targeting $25B for their 11th flagship fund, potentially the largest yet. This demonstrates Apollo’s growth ambitions and strong market positioning.
Conclusion: Should You Buy Apollo Stock?
Strengths:
Strong revenue growth and earnings performance.
High insider ownership indicates alignment with shareholder interests.
Inclusion in S&P 500 may attract more investors.
Ambitious fundraising plans signal growth potential.
Risks:
Recent insider sales, especially by major shareholders.
Declining net profit margin despite revenue growth.
High valuation near its 52-week high may limit upside in the short term.
Recommendation: Apollo Global Management shows strong fundamentals and growth potential, making it an attractive option for long-term investors focused on alternative assets.
However, monitor insider trading activity and broader market conditions before purchasing at current levels.
Apollo Global Management shares hit an all-time high soon after trading began Monday on news it will be added to the S&P 500 Index, but reversed course and recently were down 2%.
Shares of Apollo Global Management have been on a tear this year, soaring nearly 90% to an all-time high.
Overview
Business: Apollo is a leading asset management firm specializing in alternative investments like credit, private equity, and real assets.
AUM: As of 2022, it managed $548 billion in assets.
Client Base: Pension funds, sovereign wealth funds, financial endowments, institutional, and individual investors.
Key Financial Highlights (Q3 2024):
Revenue: $7.72B (↑ 285.13% YoY)
Net Income: $811M (↑ 18.91% YoY)
EPS (Diluted): $1.29 (↑ 17.27% YoY)
Net Profit Margin: 10.51% (↓ 69.12% YoY)
Earnings Calls: EPS beat by 7.3%; Revenue beat by 2.9%.
Observation: Strong revenue growth and solid earnings beat indicate operational performance strength, despite a drop in profit margin.
Stock Performance:
52-Week Range: $89.76 – $189.49.
Recent Developments: Added to the S&P 500 index, which may increase institutional investor interest.
Investment Activity: Kovitz Investment Group purchased 31,803 shares worth $3.83M recently.
Insider Trading:
Recent Insider Activity (Last 3 Months):
Shares Bought: 12,093.
Shares Sold: 1,600,414.
Net Activity: (-1,588,321).
Leon Black (Major Shareholder): Sold 1M shares for $173.48M (2.4% of holdings). Retains ~40.6M shares directly and indirectly.
Insider Ownership: Insiders collectively own $21B (~21% of the company).
Observation: High insider ownership aligns management interests with shareholders. Recent selling by Leon Black might raise concerns but is not necessarily a strong negative signal.
Growth Initiatives:
Private Equity Fund: Targeting $25B for their 11th flagship fund, potentially the largest yet. This demonstrates Apollo’s growth ambitions and strong market positioning.
Conclusion: Should You Buy Apollo Stock?
Strengths:
Strong revenue growth and earnings performance.
High insider ownership indicates alignment with shareholder interests.
Inclusion in S&P 500 may attract more investors.
Ambitious fundraising plans signal growth potential.
Risks:
Recent insider sales, especially by major shareholders.
Declining net profit margin despite revenue growth.
High valuation near its 52-week high may limit upside in the short term.
Recommendation: Apollo Global Management shows strong fundamentals and growth potential, making it an attractive option for long-term investors focused on alternative assets.
However, monitor insider trading activity and broader market conditions before purchasing at current levels.
Apollo Global Management shares hit an all-time high soon after trading began Monday on news it will be added to the S&P 500 Index, but reversed course and recently were down 2%.
Shares of Apollo Global Management have been on a tear this year, soaring nearly 90% to an all-time high.