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Whilst it may not be a huge deal, we thought it was good to see that the Arch Resources, Inc. (NYSE:ARCH) Independent Director, Patrick Bartels, recently bought US$55k worth of stock, for US$73.53 per share. That purchase might not be huge but it did increase their holding by 25%.
Arch Resources Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Director Patrick Bartels was not their only acquisition of Arch Resources shares this year. Earlier in the year, they paid US$46.23 per share in a US$138k purchase. Even though the purchase was made at a significantly lower price than the recent price (US$74.02), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Patrick Bartels bought 3.75k shares over the last 12 months at an average price of US$51.40. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Arch 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Arch Resources insiders own about US$23m worth of shares. That equates to 2.0% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Arch Resources Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Arch Resources we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Arch Resources. Every company has risks, and we've spotted 1 warning sign for Arch Resources you should know about.
But note: Arch 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, but not derivative transactions.
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.
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