EL SEGUNDO, Calif. - A-Mark Precious Metals, Inc. (NASDAQ: NASDAQ:AMRK), a fully integrated precious metals platform, announced today that its Board of Directors has decided to continue its quarterly cash dividend program by declaring a dividend of $0.20 per share. The dividend is slated for payment on July 31, 2024, to shareholders on record as of July 18, 2024.
A-Mark, established in 1965, operates through three segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending. The company distributes a variety of products including gold, silver, platinum, palladium, and copper bullion, as well as numismatic coins. A-Mark's customer base includes sovereign and private mints, manufacturers, refiners, dealers, financial institutions, industrial users, investors, and collectors.
Among its operations, A-Mark is a U.S. Mint-authorized purchaser of gold, silver, and platinum coins and has distributorships with sovereign mints across the globe. It also operates Silver Towne Mint, which provides proprietary coin and bar offerings.
In addition, its subsidiary LPM Group Limited, based in Hong Kong, is one of Asia's largest precious metals dealers, offering a wide range of products to wholesale customers.
The company's Direct-to-Consumer segment includes JM Bullion, a leading e-commerce retailer, and Goldline, which markets precious metals to investors. A-Mark also offers managed storage options and logistics services through its subsidiary A-M Global Logistics.
A-Mark Precious Metals is headquartered in El Segundo, California, with additional offices and facilities in the United States, Austria, and Hong Kong. This announcement is based on a press release statement from A-Mark Precious Metals, Inc.
In other recent news, A-Mark Precious Metals has reported mixed third-quarter results and faced analyst downgrades. Amid challenging market conditions, the firm reported earnings of $0.21 per diluted share and a 13% increase in revenues to $2.611 billion.
However, removing forward sales, revenues saw a 20% decrease. B.Riley and Northland, both financial services firms, downgraded A-Mark's stock due to these results and the current market environment.
B.Riley shifted its rating from Buy to Neutral, maintaining a price target of $33.00, citing weaker than expected market conditions. The firm projects an adjusted EBITDA of $22.3 million for the fourth quarter of fiscal year 2024, down from $38.4 million, and earnings per share (EPS) at $0.54, a decrease from the previous $1.06.
Northland, on the other hand, downgraded the stock from Outperform to Market Perform with a price target of $40.00, attributing the underperformance to decreased demand, premium compression, and high gold and silver prices.
Despite the challenges, A-Mark Precious Metals has managed to increase its customer base and complete strategic acquisitions. These are among the recent developments for the company, which remains cautious about the near-term outlook but continues to position itself for potential growth.
InvestingPro Insights
A-Mark Precious Metals, Inc. (NASDAQ: AMRK) continues to reward its shareholders with a notable dividend yield of 5.36%, a substantial gesture reflecting its commitment to return value to investors. This generous dividend policy is particularly noteworthy in light of the company's significant debt burden, as indicated by one of the InvestingPro Tips. Moreover, while A-Mark operates with weak gross profit margins of just 2.03%, the company has been able to maintain profitability over the last twelve months, with analysts predicting continued profitability this year.
The company's dedication to shareholder returns is further evidenced by its impressive dividend growth of 125.0% over the last twelve months as of Q3 2024. Additionally, A-Mark's stock price often moves in the opposite direction of the market, which could present a diversification opportunity for investors looking to hedge against broader market movements. These insights are just a few of the 12 additional InvestingPro Tips available, which can provide a deeper analysis of A-Mark's financial health and market position.
InvestingPro Data metrics reveal a market capitalization of $768.58M USD, a reasonable P/E Ratio of 9.83, and a positive one-week price total return of 3.36%, indicating recent investor confidence in the company. A-Mark's revenue growth also remains robust, with a 24.66% increase over the last twelve months as of Q3 2024, signaling strong operational performance despite the challenging gross profit margins.
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