Insider Sellers Might Regret Selling A-Mark Precious Metals Shares at a Lower Price Than Current Market Value

A-Mark Precious Metals, Inc.'s (NASDAQ:AMRK) stock price has dropped 19% in the previous week, but insiders who sold US$16m in stock over the past year have had less luck. The average selling price of US$39.05 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for A-Mark Precious Metals

The Last 12 Months Of Insider Transactions At A-Mark Precious Metals

Over the last year, we can see that the biggest insider sale was by the Independent Chairman, Jeffrey Benjamin, for US$4.2m worth of shares, at about US$44.17 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$31.59. So it is hard to draw any strong conclusion from it.

In total, A-Mark Precious Metals insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

A-Mark Precious Metals Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at A-Mark Precious Metals. Specifically, insiders ditched US$10m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does A-Mark Precious Metals Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. A-Mark Precious Metals insiders own 15% of the company, currently worth about US$134m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About A-Mark Precious Metals Insiders?

Insiders sold A-Mark Precious Metals shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing A-Mark Precious Metals. To that end, you should learn about the 5 warning signs we've spotted with A-Mark Precious Metals (including 1 which doesn't sit too well with us).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.