Some Alpha Metallurgical Resources, Inc. (NYSE:AMR) shareholders may be a little concerned to see that the President & COO, Jason Whitehead, recently sold a substantial US$22m worth of stock at a price of US$381 per share. That diminished their holding by a very significant 96%, which arguably implies a strong desire to reallocate capital.
The Last 12 Months Of Insider Transactions At Alpha Metallurgical Resources
In fact, the recent sale by Jason Whitehead was the biggest sale of Alpha Metallurgical Resources shares made by an insider individual in the last twelve months, according to our records. 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$386. So it may not shed much light on insider confidence at current levels.
In the last year Alpha Metallurgical Resources insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Insider Ownership Of Alpha Metallurgical Resources
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 14% of the company, currently worth about US$706m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Alpha Metallurgical Resources Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 3 warning signs for Alpha Metallurgical Resources (1 is a bit concerning) you should be aware of.
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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.