realestate

Apollo Commercial REIT Sees One-Year Returns Boosted by Recent Share Surge

Key Insights: Institutional investors' significant stakes in Apollo Commercial Real Estate Finance suggest confidence in its financial stability and growth prospects.

T
o truly understand who is in control of Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI), it's essential to examine its ownership structure. The top 13 shareholders hold a significant 50% stake, while institutions own an impressive 59%. This means that these groups have substantial influence over the company's share price and can reap the most rewards when the stock performs well.

    Institutional investors often compare their returns to those of a commonly followed index, so they tend to favor larger companies included in benchmark indices. Apollo Commercial Real Estate Finance has institutional investors holding a considerable portion of its stock, suggesting that analysts working for these institutions have positively assessed the company. However, this doesn't guarantee success, as large sales by multiple institutional investors can lead to significant share price drops.

    The top shareholders include BlackRock, Inc., which owns 16% of shares outstanding, and The Vanguard Group, Inc., with an 11% stake. QH RE Asset Company LLC holds around 6.1%. Notably, hedge funds have a minimal investment in the company.

    Insider ownership is another crucial aspect to consider. While insiders own less than 1% of the company's shares, they may still hold significant indirect interests through complex structures. However, it's essential to note that insiders have sold shares recently, which could indicate a lack of confidence in the company's future performance.

    The general public holds around 34% of Apollo Commercial Real Estate Finance's shares, while private companies own approximately 6.1%. To gain a deeper understanding of the company's ownership structure and potential risks, it's essential to consider other factors beyond just institutional ownership.

Real estate investment trust Apollo Commercial REIT experiences surge in one-year returns.