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Viewing insider transactions for Alpha Metallurgical Resources, Inc.'s (NYSE:AMR ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
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 Independent Director Kenneth Courtis for US$2.4m worth of shares, at about US$230 per share. That means that an insider was happy to buy shares at above the current price of US$121. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Kenneth Courtis was the only individual insider to buy shares in the last twelve months.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Alpha Metallurgical Resources
Alpha Metallurgical Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Alpha Metallurgical Resources insiders own 11% of the company, currently worth about US$180m 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.
What Might The Insider Transactions At Alpha Metallurgical Resources Tell Us?
It doesn't really mean much that no insider has traded Alpha Metallurgical Resources shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Alpha Metallurgical Resources insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alpha Metallurgical Resources. You'd be interested to know, that we found 1 warning sign for Alpha Metallurgical Resources and we suggest you have a look.