In a recent move that has caught the attention of the market, Gregory N. Roberts, the Chief Executive Officer of A-Mark Precious Metals, Inc. (NASDAQ:AMRK), has sold a significant amount of company stock. The transaction, which took place on September 18, 2024, involved the sale of 7,200 shares at an average price of $43.96, and an additional 480 shares at an average price of $45.0495. The total value of the shares sold amounts to over $338,135.
The sales occurred in multiple transactions with prices for the larger batch ranging from $43.64 to $44.58, and for the smaller batch from $44.945 to $45.11. This information comes from a weighted average sales price as reported in the footnotes of the SEC filing, indicating that the shares were sold at various prices within the specified ranges.
In addition to the sales, Roberts also acquired shares through the exercise of options. A total of 7,680 shares were exercised at a fixed price of $8.4, amounting to a transaction value of $64,512. These transactions have resulted in a change in Roberts' direct ownership in the company's common stock.
Investors often keep a close eye on insider transactions as they can provide insights into the executives' perspectives on the company's future. A-Mark Precious Metals, a wholesaler of jewelry, watches, precious stones, and metals, has not made any official statement regarding the transactions carried out by its CEO.
The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, dated September 20, 2024. Roberts' post-transaction holdings and the details of the transactions, including the exercise of options, are now public record for investors to review.
In other recent news, A-Mark Precious Metals has undergone various developments. The company's fiscal year results, ending June 30, 2024, showed a net income of $66.2 million and diluted earnings per share (EPS) of $2.75. However, after excluding a re-measurement gain from its investment in Silver Gold Bull, the diluted EPS was $2.15. Despite a 19% decrease in fourth-quarter revenues to $2.52 billion, A-Mark ended the fiscal year with over $3 million direct-to-consumer customers and repurchased $22.4 million of its common stock.
On the analyst front, B.Riley revised its forecasts for A-Mark's first quarter of fiscal year 2025, expecting an adjusted EBITDA of $31.6 million and EPS of $0.91. The firm also raised A-Mark's stock price target to $44.00, up from the previous $33.00, while maintaining a Neutral rating on the stock. Similarly, DA Davidson raised its price target for A-Mark to $47 from $42, maintaining a Buy rating on the stock.
In terms of growth, A-Mark is considering expanding its market reach, potentially through a trading hub in Singapore. The company also expanded into Asia with the acquisition of LPM and increased its investment in Silver Gold Bull Canada. Despite facing challenges such as a 25% increase in interest expenses and a 54% decrease in full-year EBITDA, A-Mark remains optimistic about potential merger and acquisition opportunities and maintaining profitability.
InvestingPro Insights
The recent insider selling by A-Mark Precious Metals, Inc.'s CEO Gregory N. Roberts has put the spotlight on the company's financial metrics and market performance. An analysis of real-time data from InvestingPro reveals a mixed financial landscape for AMRK. The company's P/E ratio stands at a moderate 14.65, suggesting that the stock may be reasonably valued compared to earnings. However, the adjusted P/E ratio for the last twelve months as of Q4 2024 is slightly higher at 17.39, indicating a potential increase in valuation expectations.
On the profitability front, AMRK has shown some positive signs. The company's gross profit for the last twelve months as of Q4 2024 was $173.25 million with a gross profit margin of 1.79%. Although the gross profit margins are considered weak, which is a point of concern as per one of the InvestingPro Tips, it is worth noting that the company's liquid assets exceed its short-term obligations, hinting at financial stability.
From a market performance perspective, AMRK has had a strong return over the last month, with a 19.87% increase in its stock price, and an even more impressive three-month price total return of 28.17%. This performance is in line with another InvestingPro Tip that highlights the stock's tendency to move in the opposite direction of the market at times.
For investors seeking further insights, there are additional InvestingPro Tips available for AMRK, which include predictions of profitability for the current year and a historical perspective of a high return over the last decade. To explore these insights in more detail, investors can visit InvestingPro's dedicated section for A-Mark Precious Metals at: https://www.investing.com/pro/AMRK.
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