Massive Insider Trade At AssetMark Financial Hldgs

It was reported on December 7, that Carrie E Hansen, EVP at AssetMark Financial Hldgs AMK executed a significant insider sell, according to an SEC filing.

What Happened: After conducting a thorough analysis, Hansen sold 11,500 shares of AssetMark Financial Hldgs. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total transaction value is $301,070.

AssetMark Financial Hldgs shares are trading down 0.0% at $26.48 at the time of this writing on Friday morning.

Unveiling the Story Behind AssetMark Financial Hldgs

AssetMark Financial Holdings Inc is a provider of extensive wealth management and technology solutions that power independent financial advisers and their clients. It provides an end-to-end experience, spanning nearly all elements of an adviser's engagement with the client, from initial conversations to ongoing financial planning discussions, including performance reporting and billing. In addition, the company's platform provides tools and capabilities for advisers to better manage their day-to-day business activities, giving them more time for meaningful conversations with investors.

Breaking Down AssetMark Financial Hldgs's Financial Performance

Revenue Growth: AssetMark Financial Hldgs's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 23.19%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.

Exploring Profitability:

• Gross Margin: The company shows a low gross margin of 48.46%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): AssetMark Financial Hldgs's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.52.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.1.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: AssetMark Financial Hldgs's P/E ratio of 17.19 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.76 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 9.24, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Essential Transaction Codes Unveiled

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of AssetMark Financial Hldgs's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.