On June 9, 2023, Mukesh Mehta, the Executive Vice President and Chief Information Officer of AssetMark Financial Holdings Inc (AMK, Financial), sold 4,173 shares of the company. This insider sell comes amidst a year of insider transactions that have seen a total of 10 insider sells and 0 insider buys. In this article, we will take a closer look at the company, its valuation, and the implications of this insider sell.
Who is Mukesh Mehta of AssetMark Financial Holdings Inc?
Mukesh Mehta serves as the Executive Vice President and Chief Information Officer of AssetMark Financial Holdings Inc. He is responsible for overseeing the company's technology strategy, infrastructure, and operations. With over 20 years of experience in the financial services industry, Mehta has held various leadership positions in technology and operations at firms such as Fidelity Investments and Charles Schwab.
AssetMark Financial Holdings Inc's Business Description
AssetMark Financial Holdings Inc is a leading provider of wealth management and technology solutions for financial advisors. The company offers an open-architecture product platform, which includes a wide range of investment solutions and services designed to help advisors build and manage their clients' portfolios. AssetMark's technology platform provides advisors with tools and resources to efficiently manage their practices and deliver a high level of service to their clients.
Analysis of Insider Buy/Sell and the Relationship with the Stock Price
Over the past year, Mukesh Mehta has sold a total of 4,173 shares and purchased 0 shares. This recent sell represents a continuation of the trend seen in the past year, with 10 insider sells and 0 insider buys. The insider transaction history for AssetMark Financial Holdings Inc suggests that insiders may be taking advantage of the stock's current valuation to realize gains.
As seen in the insider trend image above, the stock price of AssetMark Financial Holdings Inc has been on an upward trajectory over the past year. This could be a contributing factor to the insider sells, as insiders may be looking to capitalize on the stock's appreciation.
Valuation
Shares of AssetMark Financial Holdings Inc were trading for $29.95 apiece on the day of Mukesh Mehta’s recent sell. This gives the stock a market cap of $2.079 billion.
The price-earnings ratio is 21.15, which is higher than the industry median of 13.88 and lower than the company’s historical median price-earnings ratio.
With a price of $29.95 and a GuruFocus Value of $30.05, AssetMark Financial Holdings Inc has a price-to-GF-Value ratio of 1. This means the stock is fairly valued 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 sell by Mukesh Mehta, EVP and CIO of AssetMark Financial Holdings Inc, may be indicative of insiders taking advantage of the stock's current valuation. With a price-to-GF-Value ratio of 1, the stock is fairly valued, suggesting that now may be an opportune time for insiders to realize gains. Investors should keep an eye on the company's performance and insider transactions to gauge the stock's future prospects.
