Stock Traders Buy High Volume of Put Options on Apollo Global Management (NYSE:APO)

Key Points

• Unusual bearish options activity: Investors purchased 36,147 put options on Apollo Global Management, about 470% above its average volume of 6,337 contracts, signaling elevated hedging or bearish speculation.
• Apollo continued expanding its investment activity: Apollo-managed funds completed a €3 billion financing for Bayer and helped provide $585 million to The Executive Centre. Reports also linked Apollo to potential acquisitions of Johnson & Johnson’s DePuy Synthes unit and Ashland, though those discussions remain unconfirmed.
• Analysts remain broadly positive: APO has a “Moderate Buy” consensus rating, with 13 of 17 analysts issuing Strong Buy or Buy ratings and an average price target of $152.15, compared with a recent price of $128.93.

Apollo Global Management Inc. (NYSE:APO - Get Free Report) was the target of some unusual options trading activity on Wednesday. Stock investors acquired 36,147 put options on the stock. This represents an increase of 470% compared to the average volume of 6,337 put options.

Apollo Global Management News Summary

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

• Positive Sentiment: Apollo-managed funds and affiliates completed a €3 billion capital solution for Bayer. The transaction adds a major investment to Apollo’s portfolio and demonstrates its continued ability to execute large, complex financings. Apollo Funds Complete €3 Billion Capital Solution for Bayer
• Positive Sentiment: Apollo and other long-term investors provided $585 million of financing to The Executive Centre, a flexible-office operator with more than 260 locations across Asia-Pacific and the Middle East. The funds will refinance debt and support expansion, highlighting Apollo’s private-credit origination activity and potential fee income. Apollo Provides $585 Million Financing to The Executive Centre
• Positive Sentiment: Apollo-owned Michaels reportedly used a $101 million tariff refund to repurchase debt. Reducing debt at the portfolio company could lower interest expense and improve credit quality, though the benefit accrues primarily to the investment rather than directly to Apollo’s operating results. Michaels Uses $101 Million Tariff Refund to Repurchase Debt
• Neutral Sentiment: Reports say Apollo is in talks to acquire Johnson & Johnson’s DePuy Synthes orthopedics unit for approximately $20 billion. The deal could provide a large investment opportunity, but the reports remain unconfirmed and the scale raises questions about financing, valuation and execution. Apollo in Talks to Buy J&J Orthopedics Unit
• Neutral Sentiment: Apollo was mentioned among private-equity firms reportedly interested in acquiring Ashland, but the sales process and Apollo’s participation have not been confirmed. Apollo Reportedly Interested in Ashland
• Negative Sentiment: Traders purchased 36,147 APO put options, roughly 470% above typical daily put volume. The activity signals elevated near-term hedging or bearish speculation, although options flow alone does not establish a fundamental change in Apollo’s outlook.
• Negative Sentiment: House Oversight recommended holding former Apollo CEO Leon Black in contempt over a subpoena dispute involving Jeffrey Epstein-related records. The issue is primarily tied to Black personally, but could create reputational noise for Apollo. House Oversight Recommends Contempt Resolution for Leon Black

Insiders Place Their Bets

In related 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 owned 396,533 shares of the company's stock, valued at $55,847,707.72. The trade was a 0.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 8.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Apollo Global Management

Institutional investors have recently modified their holdings of the stock. Geode Capital Management LLC boosted its position in Apollo Global Management by 2.0% in the 4th quarter. Geode Capital Management LLC now owns 10,198,837 shares of the financial services provider's stock valued at $1,469,793,000 after buying an additional 200,312 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Apollo Global Management by 4.3% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,657,781 shares of the financial services provider's stock worth $669,372,000 after acquiring an additional 234,517 shares during the last quarter. Legal & General Group Plc lifted its stake in shares of Apollo Global Management by 4.5% during the fourth quarter. Legal & General Group Plc now owns 3,611,839 shares of the financial services provider's stock valued at $522,850,000 after acquiring an additional 155,857 shares during the period. Boston Partners boosted its holdings in 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 valued at $474,384,000 after acquiring an additional 1,692,532 shares during the last quarter. Finally, Bank of New York Mellon Corp boosted its holdings in Apollo Global Management by 10.6% in the fourth quarter. Bank of New York Mellon Corp now owns 2,712,442 shares of the financial services provider's stock valued at $392,653,000 after acquiring an additional 260,905 shares during the last quarter. 77.06% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on APO shares. Piper Sandler lowered their price objective on Apollo Global Management from $157.00 to $156.00 and set an "overweight" rating on the stock in a research note on Monday, July 13th. HSBC began coverage on Apollo Global Management in a research note on Monday, July 20th. They issued a "buy" rating and a $145.00 price target on the stock. Weiss Ratings upgraded Apollo Global Management from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, August 21st. Royal Bank Of Canada increased their price objective on Apollo Global Management from $137.00 to $146.00 and gave the stock a "sector perform" rating in a research note on Wednesday, August 5th. Finally, UBS Group lifted their price objective on Apollo Global Management from $157.00 to $172.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $152.15.

Apollo Global Management Price Performance

APO stock traded up $1.93 during midday trading on Wednesday, reaching $128.93. 670,036 shares of the company's stock traded hands, compared to its average volume of 4,333,904. The company has a 50-day simple moving average of $128.59 and a two-hundred day simple moving average of $123.56. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 0.34. Apollo Global Management has a 1-year low of $99.56 and a 1-year high of $153.29. The company has a market cap of $76.14 billion, a price-to-earnings ratio of 47.21, a PEG ratio of 1.12 and a beta of 1.52.

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

Apollo Global Management Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 31st. Shareholders of record on Wednesday, August 19th were issued a dividend of $0.5625 per share. The ex-dividend date of this dividend was Wednesday, August 19th. This represents a $2.25 dividend on an annualized basis and a yield of 1.7%. Apollo Global Management's dividend payout ratio is currently 82.42%.

Apollo Global Management Company Profile

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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