Independent Director of Alpha Metallurgical Resources Picks Up 17% More Stock

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$16m on stock at an average price of US$149. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 17%.

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Alpha Metallurgical Resources Insider Transactions Over The Last Year

Notably, that recent purchase by Kenneth Courtis is the biggest insider purchase of Alpha Metallurgical Resources shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$166. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. Kenneth Courtis was the only individual insider to buy shares in the last twelve months.

Kenneth Courtis purchased 118.62k shares over the year. The average price per share was US$156. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View 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

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Alpha Metallurgical Resources insiders own about US$242m worth of shares (which is 11% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Alpha Metallurgical Resources Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give 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! 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. You'd be interested to know, that we found 1 warning sign for Alpha Metallurgical Resources and we suggest you have a look.

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.