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. While that only increased their holding size by 1.7%, it is still a big swing by our standards.

The Last 12 Months Of Insider Transactions At Alpha Metallurgical Resources

Over the last year, we can see that the biggest insider sale was by the President & COO, Jason Whitehead, for US$22m worth of shares, at about US$431 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$208. So it may not tell us anything about how insiders feel about the current share price.

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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of Alpha Metallurgical Resources

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Alpha Metallurgical Resources insiders own 11% of the company, worth about US$317m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

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

It is good to see the recent insider purchase. However, the longer term transactions are not so encouraging. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Alpha Metallurgical Resources insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alpha Metallurgical Resources. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Alpha Metallurgical Resources.

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.