Director Of Apollo Global Management Trades $16M In Company Stock

Joshua Harris, Director at Apollo Global Management APO, made a large buy and sell of company shares on September 30, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission states that Joshua Harris exercised options to purchase 274,116 Apollo Global Management shares for $0 on September 30. They then sold their shares on succeeding transactions in the open market. They sold at prices ranging from $61.39 to $62.90 to raise a total of $16,928,687 from the stock sale.

Harris still owns a total of 1,800,000 shares of Apollo Global Management worth, $110,844,000.

Apollo Global Management shares are trading down 0.02% at $61.58 at the time of this writing on Friday morning.

Why Insider Transactions Are Important

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Important Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.

Check Out The Full List Of Apollo Global Management's Insider Trades.