Insider Sell: Director Beverley Lepine Sells 1000 Shares of A-Mark Precious Metals Inc
On September 13, 2023, Beverley Lepine, a director at A-Mark Precious Metals Inc (NASDAQ:AMRK), sold 1,000 shares of the company. This move is part of a larger trend for the insider, who over the past year has sold a total of 2,500 shares and made no purchases.
A-Mark Precious Metals Inc is a full-service precious metals trading company. The company offers products including gold, silver, platinum and palladium for storage and delivery in the form of coins, bars, wafers and grain. Its services include financing, leasing, consignment, hedging and various customized financial programs.
The insider's recent sell has raised questions about the company's stock performance and its relationship with insider trading activities. Over the past year, there have been 15 insider sells and no insider buys at A-Mark Precious Metals Inc.
The above image shows the trend of insider trading at A-Mark Precious Metals Inc. The lack of insider buys and the consistent insider sells could be a signal for investors to be cautious. However, it's important to note that insider selling doesn't necessarily indicate a lack of confidence in the company. Insiders may sell shares for personal reasons or to diversify their investment portfolio.
On the day of the insider's recent sell, shares of A-Mark Precious Metals Inc were trading at $34.46, giving the company a market cap of $789.502 million. The price-earnings ratio is 5.33, which is lower than the industry median of 18.38 and the companys historical median price-earnings ratio. This suggests that the company is undervalued compared to its peers.
The above image shows the GF Value of A-Mark Precious Metals Inc. With a price of $34.46 and a GuruFocus Value of $31.30, the company has a price-to-GF-Value ratio of 1.1. This indicates that the stock is fairly valued. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, while the insider's recent sell may raise eyebrows, it's important for investors to consider the broader context. The company's stock is fairly valued according to the GF Value, and the price-earnings ratio suggests it's undervalued compared to its industry peers. As always, investors should conduct their own research and consider multiple factors before making investment decisions.
This article first appeared on GuruFocus.
