We'd be surprised if AssetMark Financial Holdings, Inc. (NYSE:AMK) shareholders haven't noticed that the Executive VP, Carrie Hansen, recently sold US$301k worth of stock at US$26.18 per share. That sale was 12% of their holding, so it does make us raise an eyebrow.
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AssetMark Financial Holdings Insider Transactions Over The Last Year
In fact, the recent sale by Carrie Hansen was the biggest sale of AssetMark Financial Holdings shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$26.50. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 12%of Carrie Hansen's holding.
In the last year AssetMark Financial Holdings insiders didn't buy any company stock. 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!
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Insider Ownership Of AssetMark Financial Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that AssetMark Financial Holdings insiders own 1.7% of the company, worth about US$34m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The AssetMark Financial Holdings Insider Transactions Indicate?
An insider hasn't bought AssetMark Financial Holdings stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that AssetMark Financial Holdings is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AssetMark Financial Holdings. In terms of investment risks, we've identified 1 warning sign with AssetMark Financial Holdings and understanding it should be part of your investment process.
But note: AssetMark Financial Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.