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 move 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 for several years, leading its growth and expansion in the precious metals industry. With his extensive experience and knowledge in the field, Roberts has played a crucial role in the company's success.
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 Precious Metals Inc caters to a diverse clientele, including coin and metal dealers, investors, collectors, mines, manufacturers, refiners, jewelers, and financial institutions.
Insider Trading Analysis
Over the past year, Gregory Roberts has sold a total of 69,136 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 20 insider sells and 0 insider buys.
This pattern of insider selling could be an indication that company insiders believe the stock is overvalued or that they are taking profits after a period of growth. Investors should monitor insider trading activity to gain insights into the company's prospects and the insiders' confidence in its future performance.
Stock Price and Valuation
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 $825.984 million. The price-earnings ratio is 5.76, which is lower than the industry median of 17.11 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.
Investors should consider the stock's valuation and insider trading activity when making investment decisions. While A-Mark Precious Metals Inc has shown strong performance in the past, the recent insider selling and the stock's overvaluation may warrant caution for potential investors.
