We wouldn’t blame A-Mark Precious Metals, Inc. (NASDAQ:AMRK) shareholders if they were a little worried about the fact that Michael Wittmeyer, the Director & Consultant recently netted about US$583k selling shares at an average price of US$26.06. However, that sale only accounted for 4.7% of their holding, so arguably it doesn’t say much about their conviction.
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The Last 12 Months Of Insider Transactions At A-Mark Precious Metals
In fact, the recent sale by Michael Wittmeyer was the biggest sale of A-Mark Precious Metals shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$26.55). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. This single sale was just 4.7% of Michael Wittmeyer’s stake.
Insiders in A-Mark Precious Metals didn’t buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. A-Mark Precious Metals insiders own 17% of the company, currently worth about US$103m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The A-Mark Precious Metals Insider Transactions Indicate?
An insider sold stock recently, but they haven’t been buying. And even if we look at the last year, we didn’t see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing A-Mark Precious Metals. For instance, we’ve identified 4 warning signs for A-Mark Precious Metals (1 shouldn’t be ignored) you should be aware of.
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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.