GMGI

Golden Matrix Group($GMGI) Executive Amasses 1.3M Shares Over Six Months Despite 63% Stock Decline - A Bullish Signal?

05/08/2025 22:41

Online gaming platform company Golden Matrix Group ($GMGI) is drawing investor attention as executive Aleksandar Milovanovic continues his substantial share purchases over recent months. According to a disclosure on May 8, Milovanovic acquired another 100,000 shares at an average price of $1.94, investing a total of $194,000. This purchase extends his long-term pattern of share accumulation. From October 2024 through May 2025, Milovanovic has acquired more than 1.3 million shares, representing a personal investment exceeding $2.5 million in company stock. His purchase prices ranged from $1.80 to $2.92, with particularly significant investments in February 2025 when he acquired 200,000 shares in a single transaction as the stock price fell to the $1.80 range. Golden Matrix Group develops and licenses B2B and B2C gaming technology, headquartered in Las Vegas. Its B2B division develops proprietary gaming platforms for various clients, while its B2C division, Meridianbet, operates regulated online sports betting and gaming sites across multiple international markets. The company reported remarkable growth in fiscal year 2024, with revenue increasing 63% year-over-year to $151 million. Fourth-quarter revenue achieved an impressive 81% increase to $46 million compared to the same period last year. However, net income transitioned from a profit of $13.7 million in 2023 to a loss of $1.5 million in 2024, primarily due to acquisition-related expenses and restructuring costs. Despite these positive financial indicators, the stock price has declined approximately 63% from $5.02 in June 2024 to around $1.85 recently. The continued substantial purchases by executives despite this downward trend suggest strong insider confidence in the company's future value. Notably, these executive stock acquisitions were predominantly made at market prices using personal funds rather than through stock options or compensation packages. Meanwhile, board member Thomas McChesney conducted minor sales during the same period, selling less than 18,000 shares in November 2024 and March 2025, realizing approximately $44,000. This volume is negligible compared to Milovanovic's purchase scale. The company has recently taken several measures to improve its financial structure. On April 14, it eliminated $9.5 million in debt through equity conversion, and on April 29, it repaid and retired the Lind Global convertible note, eliminating an additional $7.2 million in debt. These actions have contributed to enhancing the company's financial flexibility. Golden Matrix is also actively pursuing market expansion and acquisitions as part of its growth strategy. In June 2024, Meridianbet Group obtained a sports betting license in South Africa, and in August, the company entered into an agreement to acquire an 80% stake in Australian company Classics For A Cause for approximately $8.4 million. According to recent performance announcements, the company recorded $42.7 million in revenue for the first quarter of 2025 and anticipates full-year 2025 revenue between $190-195 million. This forecast represents an annual growth rate of approximately 20% over the next two years, significantly outpacing the expected growth rate of 9.8% for the U.S. entertainment industry. CEO Anthony Goodman has outlined strategic priorities for 2025, including expansion into newly regulated markets such as Brazil, optimization of capital structure, enhancement of AI-driven personalization in gaming experiences, and broadening the high-margin product portfolio. Currently, $GMGI's price-to-sales ratio (P/S) is approximately 1.36, calculated based on a stock price of $2.04 and revenue of $151 million, suggesting relative undervaluation. Analysts' median 12-month target price is $3.55, approximately 74% higher than the current stock price. The paradoxical situation of continued insider buying, improved debt structure, and strong revenue growth despite a declining stock price may present an interesting opportunity for investors. In particular, the fact that executives continue to make large purchases with their own funds can be interpreted as a strong signal of internal confidence in the company's long-term value.

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