Apollo Global Management (NYSE:APO)'s stock soared to an all-time high this week, reaching a remarkable price level of $125.49. This milestone underscores the firm's significant growth trajectory over the past year, which has been marked by a robust 49.63% increase in its stock value. Investors have shown increased confidence in the asset management company's strategy and performance, propelling the stock to new heights and outpacing many of its peers in the financial sector. The company's ability to consistently deliver value amidst a dynamic economic landscape has been a key driver of its impressive stock appreciation.
In other recent news, Apollo Global Management has announced a series of significant developments. The company has agreed to acquire IGT Gaming and Everi for an all-cash transaction valued at approximately $6.3 billion. Under the new ownership structure, IGT Gaming and Everi will operate as privately held entities within a unified company.
On the financial front, Apollo has priced a $750 million senior notes offering with a 5.800% interest rate, due in 2054. The net proceeds, estimated at approximately $743.4 million, will be allocated for general corporate purposes. Additionally, the company has launched another offering of senior notes, which will be fully and unconditionally guaranteed by several of its subsidiaries.
In terms of analyst outlooks, Jefferies has revised Apollo's outlook upward, raising the investment firm's price target to $129.00 from $117.00. Despite a slight decrease in distributable earnings per share estimates for Q2 2024, the firm's year-over-year growth projections remain positive, with estimates for 2024 suggesting a 15% year-over-year increase in fee-related earnings.
Apollo, along with Kyndryl Holdings, is considering a joint acquisition of DXC Technology (NYSE:DXC), which could value DXC Technology's shares between $22 and $25. Lastly, Apollo and Sony (NYSE:SONY) Pictures Entertainment are reportedly in talks to acquire and split Paramount Global for $26 billion. These are the recent developments involving Apollo Global Management.
InvestingPro Insights
Apollo Global Management (APO) has not only hit a new 52-week high but is also trading close to this level, with a price percentage of the high at 97.87%. This reflects the strong investor confidence that has propelled the stock upwards. The company’s market capitalization stands at a solid $70.95 billion, underlining its significant presence in the financial services industry.
Investors may be interested in the performance metrics of Apollo, with a notable revenue growth of 120.25% over the last twelve months as of Q1 2024. This impressive increase is complemented by a robust gross profit margin of 26.29%, showcasing the company's ability to maintain profitability. Additionally, Apollo has demonstrated a commitment to shareholder returns, maintaining dividend payments for 14 consecutive years and showcasing a dividend yield of 1.51%.
Among the two InvestingPro Tips relevant to this article, analysts have predicted a sales decline in the current year, which investors might want to consider in the context of Apollo's recent stock performance. However, the company is still expected to be profitable this year, which could continue to support investor sentiment. For those interested in a deeper dive into Apollo's financials and future outlook, InvestingPro offers additional insights. There are 13 more tips available that can provide a comprehensive analysis for potential investors. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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