Apollo Global Management, Inc. (NYSE:APO), a leading global alternative investment manager with a market capitalization of $97.8 billion, has amended its insider trading policy to allow certain senior executives to engage in prepaid variable forward contracts (PVFCs) involving the company's shares.
This amendment, effective as of August 7, 2024, enables these executives to access liquidity while potentially reducing market sales and maintaining their voting rights.
According to InvestingPro data, Apollo has demonstrated remarkable performance with a 96% return over the past year, making it a prominent player in the Financial Services industry.
The amended policy stipulates that transactions must involve at least 50,000 shares and cannot exceed 10% of the executive's beneficial ownership, including vested equity awards.
Additionally, executives entering into PVFCs must agree to a one-year lock-up period, during which they cannot sell or transfer any shares outside of the PVFCs, with certain exceptions.
InvestingPro analysis reveals that Apollo has maintained dividend payments for 14 consecutive years, demonstrating consistent shareholder returns.
On Monday, Marc Rowan, CEO of Apollo, filed with the SEC his intention for affiliated entities to enter into PVFCs for 2,500,000 shares, approximately 7% of his beneficial ownership and less than 0.5% of Apollo's total outstanding shares.
This move comes following the announcement that Apollo's shares will be included in the S&P 500 Index, a factor that Rowan believes offers a unique opportunity due to anticipated higher trading volumes.
Rowan's affiliated entities have pledged the same number of shares in support of the contracts, and he has committed to a one-year lock-up agreement for all his remaining shares. Rowan has conveyed to Apollo that he currently has no plans to sell his other beneficially owned shares.
This strategic decision by Apollo's CEO reflects a method of liquidity management that aligns with the interests of shareholders by potentially reducing the number of shares sold in the open market. The information is based on a press release statement.
In other recent news, Apollo Global Management and Pactiv Evergreen have made significant strides in the investment sector. Apollo Global Management's stock has been upgraded by TD Cowen from $178.00 to $230.00 ahead of its inclusion in the S&P 500 Index. Piper Sandler has also maintained an Overweight rating for Apollo Global Management, reflecting confidence in the company's performance.
Meanwhile, Pactiv Evergreen Inc. is set to be acquired by Novolex, an Apollo Global Management-owned company, in a deal valued at $6.7 billion. This merger is expected to establish a significant presence in the food, beverage, and specialty packaging sector.
Furthermore, Apollo Global Management has reached an agreement with TotalEnergies (EPA:TTEF) to purchase a 50% interest in a portfolio of solar and battery energy storage systems in Texas. This investment aligns with Apollo's Clean Transition strategy and demonstrates the company's commitment to the renewable energy sector.
In addition, AppLovin (NASDAQ:APP), The Trade Desk Inc . (NASDAQ:TTD), and Coinbase (NASDAQ:COIN) experienced declines in their shares after not being included in the latest S&P 500 Index rebalance. This development underscores the influence of S&P 500 inclusion or exclusion on investor perception and stock performance. These are recent developments that investors should consider.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.