Independent Director of Alpha Metallurgical Resources Kenneth Courtis Buys 1.7% More Shares

Those following along with Alpha Metallurgical Resources, Inc. (NYSE:AMR) will no doubt be intrigued by the recent purchase of shares by Kenneth Courtis, Independent Director of the company, who spent a stonking US$2.4m on stock at an average price of US$229. 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 1.7%.

See our latest analysis for Alpha Metallurgical Resources

The Last 12 Months Of Insider Transactions At Alpha Metallurgical Resources

The President & COO, Jason Whitehead, made the biggest insider sale in the last 12 months. That single transaction was for US$22m worth of shares at a price of US$431 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$208. So it may not shed much light on insider confidence at current levels.

Over the last year we saw more insider selling of Alpha Metallurgical Resources shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Alpha Metallurgical Resources better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Alpha Metallurgical Resources

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Alpha Metallurgical Resources insiders own about US$317m worth of shares (which is 11% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Alpha Metallurgical Resources Insider Transactions Indicate?

The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alpha Metallurgical Resources. At Simply Wall St, we found 2 warning signs for Alpha Metallurgical Resources that deserve your attention before buying any shares.

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.