Insider Buying: The Alpha Metallurgical Resources, Inc. (NYSE:AMR) Chairman & CEO Just


Even if it’s not a huge purchase, we think it was good to see that David Stetson, the Chairman & CEO of Alpha Metallurgical Resources, Inc. (NYSE:AMR) recently shelled out US$73k to buy stock, at US$14.52 per share. Although the purchase is not a big one, increasing their shareholding by only 4.4%, it can be interpreted as a good sign.

View our latest analysis for Alpha Metallurgical Resources

The Last 12 Months Of Insider Transactions At Alpha Metallurgical Resources

Over the last year, we can see that the biggest insider purchase was by insider Michael Gorzynski for US$1.4m worth of shares, at about US$8.75 per share. Even though the purchase was made at a significantly lower price than the recent price (US$13.91), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.

In the last twelve months Alpha Metallurgical Resources insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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NYSE:AMR Insider Trading Volume May 16th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 12% of Alpha Metallurgical Resources shares, worth about US$31m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Alpha Metallurgical Resources Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Alpha Metallurgical Resources insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in Alpha Metallurgical Resources, you should check out this free report on analyst forecasts for the company.

Of course Alpha Metallurgical Resources 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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This article by Simply Wall St is general in nature. 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.
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