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EL SEGUNDO, Calif. - A-Mark Precious Metals, Inc. (NASDAQ: AMRK), a fully integrated precious metals platform generating over $10.5 billion in annual revenue, has announced a series of acquisitions aimed at bolstering its position in the collectible coin market. According to InvestingPro data, the company maintains strong financial health with liquid assets exceeding short-term obligations and a healthy current ratio of 1.58. The company completed the acquisition of Spectrum Group International, Inc. (SGI), the parent of Stack’s Bowers Galleries (SBG), on February 28, 2025, for a total consideration of $92.0 million, split equally between cash and A-Mark stock. This strategic move comes as A-Mark’s stock has experienced a significant 36% decline over the past six months, though analysts maintain a positive outlook with price targets ranging from $35 to $63 per share.
Following the SGI deal, A-Mark entered into a definitive agreement on Sunday to acquire the remaining 90% of AMS Holding, LLC (AMS) not previously owned by the company. AMS, known for its flagship brand GOVMINT, generated $203.8 million in revenue and $9.3 million in adjusted EBITDA for the year ending December 31, 2024. The transaction, valued at $50.0 million in cash with up to an additional $9.0 million contingent on performance benchmarks, is expected to close within 45 days.
Additionally, A-Mark finalized the acquisition of the majority stake in Pinehurst Coin Exchange, Inc. (Pinehurst) on February 28, 2025, for $6.5 million in cash, with up to $5.3 million in additional consideration based on performance. Pinehurst is a prominent online retailer of modern and numismatic coins on eBay, boasting a customer base of nearly 300,000 since its inception.
These strategic moves are anticipated to enhance A-Mark’s gross margins, especially during periods of low bullion volatility, and introduce a substantial base of new customers to the company. InvestingPro analysis reveals the company’s strong free cash flow yield, suggesting efficient capital management. For detailed insights into A-Mark’s valuation and 8 additional exclusive ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro. The acquisitions are expected to integrate seamlessly into A-Mark’s global sourcing network and logistics platform, leveraging the existing relationships between the companies.
A-Mark CEO Greg Roberts expressed confidence in the expansion, highlighting the luxury market potential and the added customer base. Jim Hilt, CEO of AMS, and Vince Wade, Founder of Pinehurst, both conveyed their enthusiasm for the opportunities presented by the acquisitions.
The transactions were facilitated by a range of financial and legal advisors, including Roth Capital Partners and Kramer Levin Naftalis & Frankel LLP for SGI, D.A. Davidson & Co. for both AMS and Pinehurst, and others.
A-Mark Precious Metals, founded in 1965, serves a diverse global customer base, including sovereign and private mints, financial institutions, and retail customers. The company’s operations span wholesale sales, direct-to-consumer, and secured lending segments. With a market capitalization of $637 million and EBITDA of $71.4 million, A-Mark continues to demonstrate solid financial performance. This expansion into the collectibles market is based on a press release statement and aims to leverage A-Mark’s established platform to enhance its market presence. Visit InvestingPro’s Most Undervalued Stocks list to discover similar investment opportunities with strong fundamentals.
In other recent news, A-Mark Precious Metals reported a 32% increase in revenue for the second quarter of fiscal year 2025, reaching $2.742 billion. Despite the revenue growth, net income declined to $6.6 million, or $0.27 per diluted share, a decrease from the previous year. Gross profit also fell by 3% to $44.8 million. The company completed the acquisition of Spectrum Group International, a transaction structured as a merger, with a total cash consideration of approximately $44.7 million. Concurrently, A-Mark amended its credit facility in collaboration with CIBC Bank USA, increasing its trading credit facility to $457 million. DA Davidson adjusted its price target for A-Mark to $35, down from $43, while maintaining a Buy rating, citing the company’s strategic acquisitions and financial strategies. A-Mark’s recent activities in mergers and acquisitions, including the purchase of Stack’s Bowers Galleries, are seen as steps to enhance market reach and product offerings. The company ended the quarter with a cash position of $37.8 million and total debt of $229 million.
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