Independent Director of Alpha Metallurgical Resources Picks Up 4.9% More Stock
Alpha Metallurgical Resources, Inc. (NYSE:AMR) shareholders (or potential shareholders) will be happy to see that the Independent Director, Kenneth Courtis, recently bought a whopping US$6.3m worth of stock, at a price of US$175. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 4.9%.
Alpha Metallurgical Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Director Kenneth Courtis was not the only time they bought Alpha Metallurgical Resources shares this year. They previously made an even bigger purchase of US$16m worth of shares at a price of US$157 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$185. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Kenneth Courtis purchased 144.00k shares over the year. The average price per share was US$155. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Alpha Metallurgical Resources
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Alpha Metallurgical Resources
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Alpha Metallurgical Resources insiders own 13% of the company, currently worth about US$306m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Alpha Metallurgical Resources Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Alpha Metallurgical Resources. Looks promising! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Alpha Metallurgical Resources 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.