GMGI

Golden Matrix($GMGI) Executive Accumulates $2 Million in Shares Despite 50% Stock Plunge

03/27/2025 07:38

Despite a more than 50% drop in Golden Matrix Group Inc.'s ($GMGI) stock price over the past nine months, one senior executive has been aggressively purchasing millions of dollars worth of shares, drawing significant investor attention. $GMGI's stock, which started at $5.02 in early June 2024, has steadily declined to hit a low of $1.72 by late January 2025, representing a roughly 65% loss in value. While the stock has recently been trading around $2.15, it remains substantially below its 52-week high of $6.27. In spite of this bearish price action, Golden Matrix officer Aleksandar Milovanovic has consistently executed large share purchases from October 2024 through March 2025. Most notably, in February 2025 alone, he acquired approximately 550,000 shares, representing an investment of about $1 million. His total purchases during this period amount to roughly $2 million. Particularly striking is Milovanovic's pattern of concentrated buying during the stock's lowest points. When shares dropped to the $1.80 range in early February 2025, he executed multiple large purchases over consecutive days. This typically indicates an insider's conviction that the company's fundamental value significantly exceeds its current market price. In contrast, company director Thomas McChesney sold 10,000 shares (approximately $27,250) in November 2024, though this sale is relatively minor compared to Milovanovic's substantial acquisitions. Golden Matrix Group, an online gaming and betting platform provider, has demonstrated solid financial growth in recent reports. The company recorded $151.12 million in revenue for its most recent fiscal year, representing a 63% increase year-over-year. It also reported $14.82 million in net income with a 16.92% net profit margin. Notably, the company maintains a debt-free balance sheet (0% debt ratio), indicating financial stability. Additionally, Golden Matrix has made several noteworthy business expansion moves recently. In June 2024, its subsidiary Meridianbet Group secured a sports betting license in South Africa, and in August 2024, the company entered into an agreement to acquire an 80% stake in Australian-based 'Classics For A Cause' for approximately $8.4 million. The company also authorized a $5 million share repurchase program in July 2024. Analysts expect Golden Matrix to report breakeven results in its March 2025 earnings announcement, with projected revenue of $39.42 million. The current median analyst price target stands at $3.50, approximately 60% above current trading levels. Insider buying, particularly substantial purchases by management, is generally interpreted as a strong signal of confidence in a company's long-term prospects. Milovanovic's persistent and substantial buying may reflect an insider view that the market is undervaluing Golden Matrix. However, investors should also consider challenging factors such as intensifying competition in the online gaming and betting industry, regulatory change risks, and global economic uncertainties. It's also worth noting that insider buying doesn't always translate to immediate stock price appreciation. Currently, $GMGI trades at a P/E ratio of 28.2x, which isn't particularly high for a growth company, especially considering its 63% revenue growth rate. This suggests the current share price may potentially be undervalued. In conclusion, Golden Matrix Group officer Aleksandar Milovanovic's consistent and substantial share purchases, combined with the company's healthy financial state, may signal that the current stock price fails to reflect the company's actual value. Nevertheless, investors should balance this against industry-specific risks and market volatility.

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