Trade Alert: The Chairman Of Albemarle Corporation (NYSE:ALB), Jerry Masters, Has Just Spent US$1m Buying 49% More Shares

By
Simply Wall St
Published
February 20, 2022
NYSE:ALB
Source: Shutterstock

Albemarle Corporation (NYSE:ALB) shareholders (or potential shareholders) will be happy to see that the Chairman, Jerry Masters, recently bought a whopping US$1m worth of stock, at a price of US$191. Not only is that a big swing, but it increased their holding size by 49%, which is definitely great to see.

See our latest analysis for Albemarle

Albemarle Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive VP, Karen Narwold, sold US$2.2m worth of shares at a price of US$217 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$191). So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$1.2m for 6.30k shares. But insiders sold 32.00k shares worth US$7.2m. All up, insiders sold more shares in Albemarle than they bought, over the last year. 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!

insider-trading-volume
NYSE:ALB Insider Trading Volume February 20th 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Albemarle Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Albemarle insiders own 0.3% of the company, worth about US$69m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Albemarle Insiders?

The recent insider purchases are heartening. However, the longer term transactions are not so encouraging. The more recent transactions are a positive, but Albemarle insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. In short they are likely aligned with shareholders. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Albemarle has 3 warning signs we think you should be aware of.

Of course Albemarle may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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, but not derivative transactions.

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