On May 24, 2023, CEO and 10% Owner Gregory Roberts sold 6,587 shares of A-Mark Precious Metals Inc (AMRK, Financial), a full-service precious metals trading company. This sale comes amidst a year of insider selling activity for the company, with no insider buys recorded over the same period.
Who is Gregory Roberts?
Gregory Roberts is the CEO and a 10% owner of A-Mark Precious Metals Inc. He has been with the company since 2005 and has played a significant role in its growth and development. Under his leadership, A-Mark has expanded its product offerings and services, catering to a wide range of clients, including coin and metal dealers, investors, and collectors.
About A-Mark Precious Metals Inc
A-Mark Precious Metals Inc is a full-service precious metals trading company that offers a wide range of products and services. The company deals in gold, silver, platinum, and palladium, providing its clients with various investment options. A-Mark's services include financing, leasing, consignment, hedging, and various customized financial programs. The company caters to a diverse clientele, including mints, manufacturers, refiners, e-commerce companies, financial institutions, and individual investors.
Insider Trading Analysis
Over the past year, Gregory Roberts has sold a total of 79,136 shares and purchased 0 shares. This recent sale of 6,587 shares is part of a broader trend of insider selling for A-Mark Precious Metals Inc. In the past year, there have been 21 insider sells and 0 insider buys.
This pattern of insider selling could be a cause for concern for investors, as it may indicate that insiders believe the stock is overvalued or that they are losing confidence in the company's future prospects. However, it is essential to consider other factors, such as the company's financial performance and market conditions, before drawing any conclusions.
Stock Valuation and Price
On the day of Gregory Roberts's recent sale, shares of A-Mark Precious Metals Inc were trading at $36.33 apiece, giving the stock a market cap of $808.539 million. The price-earnings ratio is 5.63, which is lower than the industry median of 17.23 and lower than the company's historical median price-earnings ratio.
With a price of $36.33 and a GuruFocus Value of $25.65, A-Mark Precious Metals Inc has a price-to-GF-Value ratio of 1.42. This means the stock is significantly overvalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider selling activity by CEO and 10% Owner Gregory Roberts, along with the stock's current valuation, may raise concerns for potential investors. It is crucial to consider these factors in conjunction with the company's financial performance and overall market conditions before making any investment decisions.
