Apollo Global Management Inc. (NYSE:APO) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Apollo Global Management, with 12 buy, 4 hold, and 1 strong-buy ratings among 17 brokerages. The average 12-month price target is approximately $152.15, above the reported share price of $125.95.
• Apollo continues to expand its deal activity, including a $1.25 billion equity investment supporting the BMG-Concord combination and potential increases to its SoftBank Vision Fund II loan. The firm is also exploring an Energos sale valued above $3 billion.
• Despite substantial institutional ownership and a quarterly dividend, risks include warnings over hyperscaler debt tied to the AI buildout, bearish put-option activity, and reputational concerns involving former CEO Leon Black. Apollo also slightly missed quarterly earnings and revenue estimates.

Shares of Apollo Global Management Inc. (NYSE:APO - Get Free Report) have been assigned an average rating of "Moderate Buy" from the seventeen brokerages that are presently covering the company, MarketBeat reports. Four equities research analysts have rated the stock with a hold recommendation, twelve have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $152.1538.

Several analysts have commented on the stock. Wall Street Zen upgraded shares of Apollo Global Management from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 18th. Barclays increased their target price on Apollo Global Management from $132.00 to $157.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 5th. BMO Capital Markets lowered their target price on Apollo Global Management from $140.00 to $126.00 and set a "market perform" rating for the company in a research note on Monday, July 13th. TD Cowen restated a "buy" rating on shares of Apollo Global Management in a research report on Thursday, August 6th. Finally, Morgan Stanley reduced their price target on Apollo Global Management from $165.00 to $164.00 and set an "overweight" rating on the stock in a research note on Tuesday, July 21st.

Key Stories Impacting Apollo Global Management

Here are the key news stories impacting Apollo Global Management this week:

• Positive Sentiment: Apollo-managed funds provided a $1.25 billion equity capital solution to support the combination of BMG and Concord. Apollo will receive a minority interest in part of BMG’s music-rights portfolio, adding another potentially valuable alternative-asset investment. Apollo Provides $1.25 Billion Capital Solution
• Positive Sentiment: Apollo is reportedly considering increasing its loan to SoftBank’s Vision Fund II to as much as $9 billion from $5.4 billion to support SoftBank’s investment in OpenAI. A larger transaction could increase Apollo’s fee-generating credit exposure, although the deal is not final. Apollo Mulls Raising SoftBank Loan
• Positive Sentiment: Apollo is exploring a sale of floating-LNG infrastructure operator Energos at a valuation above $3 billion. A transaction could provide liquidity and demonstrate value realization from Apollo’s infrastructure portfolio. Apollo Considers Energos Infrastructure Sale
• Positive Sentiment: Daiwa House is acquiring a significant minority stake in UK housebuilder Miller Homes from Apollo funds, providing a strategic partner and a potential realization event. Apollo also completed a €3 billion capital solution for Bayer and supplied $585 million of financing to flexible-office provider The Executive Centre, highlighting continued deal activity across credit and private equity. Daiwa House Miller Homes Investment
• Neutral Sentiment: Reports that Abu Dhabi wealth fund L’imad is considering a stake in Apollo’s Atlas Air cargo unit and that Apollo is backing AI-hardware startups point to additional capital-raising and growth opportunities, but the financial impact is unclear. L’imad Eyes Atlas Air Stake
• Negative Sentiment: Apollo warned that rising credit-default-swap spreads for hyperscaler debt signal increasing risk around the debt financing the AI buildout. The warning could raise concerns about Apollo’s exposure to aggressive AI-related lending. Apollo Warns on Hyperscaler Debt
• Negative Sentiment: Unusually heavy put-option activity indicated bearish positioning in APO, while the House vote to hold former Apollo CEO Leon Black in contempt over Epstein-related subpoenas adds reputational and headline risk to the firm. House Holds Leon Black in Contempt

Insider Buying and Selling at Apollo Global Management

In other news, CFO Martin Kelly sold 3,000 shares of the company's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $140.84, for a total value of $422,520.00. Following the sale, the chief financial officer directly owned 396,533 shares of the company's stock, valued at $55,847,707.72. This represents a 0.75% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 8.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of APO. Legal & General Group Plc purchased a new stake in Apollo Global Management during the 2nd quarter valued at $459,987,000. Bank of New York Mellon Corp bought a new stake in shares of Apollo Global Management in the 2nd quarter worth $336,644,000. Boston Partners raised its stake in shares of Apollo Global Management by 106.7% in the fourth quarter. Boston Partners now owns 3,278,862 shares of the financial services provider's stock worth $474,384,000 after purchasing an additional 1,692,532 shares during the last quarter. Temasek Holdings Private Ltd raised its stake in shares of Apollo Global Management by 214.4% in the first quarter. Temasek Holdings Private Ltd now owns 2,368,162 shares of the financial services provider's stock worth $263,861,000 after purchasing an additional 1,614,813 shares during the last quarter. Finally, Deutsche Bank AG bought a new position in shares of Apollo Global Management during the second quarter valued at $172,290,000. 77.06% of the stock is owned by hedge funds and other institutional investors.

Apollo Global Management Stock Up 1.1%

Shares of Apollo Global Management stock opened at $125.95 on Friday. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 0.34. The company's fifty day simple moving average is $128.84 and its two-hundred day simple moving average is $123.79. The company has a market cap of $74.38 billion, a P/E ratio of 46.14, a PEG ratio of 1.09 and a beta of 1.52. Apollo Global Management has a 12-month low of $99.56 and a 12-month high of $153.29.

Apollo Global Management (NYSE:APO - Get Free Report) last posted its earnings results on Tuesday, August 4th. The financial services provider reported $2.11 EPS for the quarter, missing the consensus estimate of $2.16 by ($0.05). The company had revenue of $5.57 billion during the quarter, compared to analysts' expectations of $5.65 billion. Apollo Global Management had a return on equity of 14.01% and a net margin of 5.22%.During the same period in the prior year, the business posted $1.92 earnings per share. Research analysts anticipate that Apollo Global Management will post 8.08 EPS for the current year.

Apollo Global Management Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, August 31st. Stockholders of record on Wednesday, August 19th were issued a dividend of $0.5625 per share. This represents a $2.25 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date was Wednesday, August 19th. Apollo Global Management's payout ratio is 82.42%.

About Apollo Global Management

Apollo Global Management, Inc NYSE: APO is a global alternative asset manager that provides investment management and retirement services. The company serves institutional investors, businesses and individual investors through a range of strategies focused on private equity, credit, real assets and other long-term investments.

Apollo's asset-management business invests across industries and geographies, with activities that include corporate and structured credit, private equity, infrastructure, real estate and hybrid strategies.

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