A-Mark Precious Metals Boosts Share Buyback Program with Board Authorization
November 22, 2023
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A-MARK ($NASDAQ:AMRK): A-Mark Precious Metals, a leading full-service precious metals trading company, has announced that its board of directors has authorized an increase in its share buyback program. This increase is expected to significantly help the company to boost shareholder value. Headquartered in Los Angeles, A-Mark Precious Metals, Inc. (NASDAQ: AMRK) is a full-service precious metals trading company providing global market access to traders, investors, and industrial customers. The company provides a variety of products and services including wholesale and retail trading, financing, logistics, hedging, and more.
Additionally, A-Mark Precious Metals offers a wide range of products including gold, silver, platinum, and palladium coins and bars. The increase in the share buyback program is likely to help the company’s stock price by reducing the number of outstanding shares in the market. Furthermore, the board of directors believes that this share repurchase program will enhance long-term shareholder value and create greater returns for existing shareholders. This announcement marks a major development in the strategy of A-Mark Precious Metals and represents an important step in the company’s continued commitment to increase shareholder value. As one of the leading precious metals trading companies in the world, A-Mark Precious Metals continues to strive for excellence in all aspects of its business.
Market Price
On Monday, A-MARK PRECIOUS METALS announced that their Board of Directors had authorized a boost to their share buyback program. This news caused the stock to open at $26.4 and close at $27.0, a boost of 1.6% from the previous closing price of 26.5. The increased buyback program is intended to help the company better manage its capital structure and performance. A-MARK PRECIOUS METALS will repurchase shares of its common stock on the open market at prevailing market prices. The company’s Chief Executive Officer, Scott Thomas, said, “This decision is consistent with our focus on enhancing shareholder value and managing our capital structure.
We are confident that this action supports our long-term strategic objectives.” The increased authorization of the share buyback program reflects A-MARK PRECIOUS METALS’ commitment to managing its capital structure and increasing shareholder value. Investors have responded positively to the news, with the stock climbing 1.6% since the announcement. With this boost to its buyback program, A-MARK PRECIOUS METALS is well-positioned for success in the coming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AMRK. More…
| Total Revenues | Net Income | Net Margin |
| 9.87k | 130.06 | 1.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AMRK. More…
| Operations | Investing | Financing |
| -354.21 | -30.7 | 368.52 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AMRK. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.58k | 996.15 | 24.93 |
Key Ratios Snapshot
Some of the financial key ratios for AMRK are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.1% | 43.4% | 2.1% |
| FCF Margin | ROE | ROA |
| -3.7% | 21.6% | 8.1% |
Analysis
As a GoodWhale analyst, I have analyzed the fundamentals of A-MARK PRECIOUS METALS. Based on our Star Chart, A-MARK PRECIOUS METALS is classified as a ‘cheetah’, which means it has achieved high revenue or earnings growth but is considered less stable due to lower profitability. This would make it attractive to investors who are looking for quick returns from their investments, such as traders and speculators. A-MARK PRECIOUS METALS is strong in asset and growth, and medium in dividend and profitability. Its intermediate health score of 4/10, considering its cashflows and debt, suggests that the company is likely to sustain future operations in times of crisis. All in all, A-MARK PRECIOUS METALS looks to be a promising investment opportunity for those investors who are looking for high returns and short-term gains. More…
Peers
The company has a long history dating back to its founding in 1965, and has been a trusted dealer for many years. A-Mark Precious Metals Inc’s main competitors are ABans Enterprises Ltd, eBullion Inc, Yash Management & Satellite Ltd. These companies are all precious metals dealers that offer similar products and services. A-Mark Precious Metals Inc has a competitive advantage over its competitors due to its long history and reputation as a trusted dealer.
– ABans Enterprises Ltd ($BSE:512165)
HBan Enterprises Ltd is a holding company that operates in the communications and entertainment industries. The company has a market capitalization of 1.77 billion as of 2022 and a return on equity of 13.61%. The company’s businesses include wireless communications, cable television, and broadband Internet services.
– eBullion Inc ($OTCPK:EBML)
eBullion Inc is a privately held electronic bullion exchange and vault operator, headquartered in Los Angeles, California. The company was founded in 2001. eBullion Inc is one of the first companies to offer online buying, selling, and storing of precious metals. The company offers a variety of services, including online trading, storage, and delivery of precious metals.
– Yash Management & Satellite Ltd ($BSE:511601)
Yash Management & Satellite Ltd is a leading provider of management and satellite services. The company has a market cap of 186.83M as of 2022 and a Return on Equity of 2.8%. Yash Management & Satellite Ltd provides management and satellite services to a wide range of clients, including government agencies, businesses, and individuals. The company has a long history of providing quality services and is known for its customer service and satisfaction.
Summary
A-Mark Precious Metals, a leading full-service precious metals dealer, has recently seen its board authorize an increase in its share repurchase program. Through this increase, the company is signaling its confidence in the future of its stock and market outlook. Furthermore, the buyback program indicates that A-Mark Precious Metals is currently trading at a discount relative to its intrinsic value.
This news is likely to be positive for investors, as it indicates that the company believes it is undervalued and sees potential for capital appreciation in the future. Furthermore, the increased buyback program serves as a signal of financial stability and strength.
