Apollo Global Management Shores Up Real Estate Assets With Bridge Investment Group Acquisition
Bridge Investment Group (BRDG) stock rocketed higher today after Apollo Global Management (APO) announced it will spend roughly $1.5 billion to acquire the real estate management company. However, it will use stock to fund the transaction instead of cash.
Discover the Best Stocks and Maximize Your Portfolio:
Apollo Global Management is beefing up its real estate investments to better compete with rival equity firms. Acquiring Bridge Investment Group works toward that goal while bringing new talent to the investment company. The deal will see Bridge Investment Group Executive Chairman Bob Morse become a partner of Apollo Global Management and lead its real-estate equity business.
Apollo Global Management’s acquisition also helps with its wider goal of increasing the assets under its management. The company seeks to increase this number to $1.5 trillion by 2029 and is inching closer to that goal with $751 billion in assets at the end of last year.
What This Means for BRDG & APO Stockholders
Investors in Bridge Investment Group welcome the acquisition by Apollo Global Management as it provides them increased value while offloading their troubled BRDG shares. The company went public in July 2021 but failed to perform as well as expected, leaving the shares down 36.74% since their debut.
With today’s news comes a rally for BRDG stock, sending shares 35.35% higher as of this writing. That comes with heavy trading as 1.16 million units changed hands, compared to a three-month daily average of about 142,000 shares. APO stock slid 1.86% today, which is typical for the buyer in an acquisition deal.
Is APO Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Apollo Global Management is Strong Buy based on 13 Buy and three Hold ratings over the last three months. With that comes an average price target of $190.07, a high of $227, and a low of $163. This represents a potential 28.59% upside for APO stock.
Source link
