Is Alpha Metallurgical Resources Stock a Buy After a Director Scoops Up Shares Worth $6.7 Million?

Kenneth S. Courtis, a member of the Board of Directors at Alpha Metallurgical Resources (NYSE:AMR), acquired 37,000 shares in multiple open-market transactions between Dec. 9 and Dec. 12, 2025, for a total consideration of $6,694,202.54, as disclosed in the SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average purchase price ($180.92); post-transaction value based on Dec. 12, 2025 market close ($180.92).

Key questions

• How does the scale of this purchase compare to Kenneth S. Courtis' previous buying activity?
  This transaction of 37,000 shares is more than three times the historical median purchase size for Mr. Courtis, whose median buy over the past three years was 10,621 shares, highlighting an atypically large increase in direct ownership.
• What impact does this transaction have on Mr. Courtis' direct ownership in Alpha Metallurgical Resources?
  The purchase lifted Mr. Courtis' direct holdings by 4.80%, bringing his post-transaction direct stake to 807,537 shares and raising his personal position to the highest level observed in the recent period.
• Were there any derivative instruments or indirect holdings involved in this transaction?
  No; the filing reflects only direct, open-market common stock purchases with no participation from trusts or other entities, and no options or other derivatives exercised.
• How does this insider buying align with the company's recent performance and valuation context?
  Mr. Courtis' accumulation follows a year in which Alpha Metallurgical Resources shares declined by 14.57% (as of Dec. 12, 2025), suggesting the Director is increasing exposure at a relative valuation low compared to recent history.

Company overview

*1-year performance is calculated using Dec. 12, 2025 as the reference date.

Company snapshot

• Alpha Metallurgical Resources produces, processes, and sells metallurgical and thermal coal, with operations concentrated in Virginia and West Virginia.
• It operates a portfolio of active mines and coal preparation facilities, focusing on supplying metallurgical coal to steelmakers and thermal coal to utilities.
• The company serves industrial customers in the steelmaking and power generation sectors, emphasizing operational efficiency and market responsiveness.

Alpha Metallurgical Resources is a leading U.S.-based coal producer with integrated mining operations and a focus on high-quality coal products. The company’s scale and operational footprint provide a competitive advantage in serving key industrial markets.

What this transaction means for investors

The purchase of nearly $7 million in Alpha Metallurgical Resources stock by Board of Directors member Kenneth Courtis is significant not only because it boosted his holdings, but the buy came at a time when shares were up.

Alpha's stock hit a 52-week low of $97.41 back in June, but now it's approaching the high of $213.96 reached in December of 2024. For Mr. Courtis to grab shares when the price is rising suggests he's bullish on the company's future.

That's saying a lot since Alpha is experiencing a downturn in its business. The company reported a net loss of $5.5 million in the third quarter compared to net income of $3.8 million in the prior year.

Contributing to the loss is a decline in revenue. Through the first three quarters of 2025, sales came in at $1.6 billion, down from $2.3 billion in 2024. Alpha is doing so poorly, CEO Andy Eidson noted, "the highlight of our quarterly results is our cost performance."

Cutting costs when sales are down makes sense, but for that to be the highlight indicates Alpha is going through a rough patch. That's what makes Mr. Courtis' purchase of shares worth noting. Perhaps he anticipates brighter days ahead for the company. But for investors, the prudent approach is to see how Alpha's business performs over the next couple of quarters before deciding to buy.

Glossary

Open-market transaction: A purchase or sale of securities on a public exchange, not through private or pre-arranged deals.

SEC Form 4: A required filing disclosing insider trades by company officers, directors, or significant shareholders.

Insider buying: When a company's executive, director, or major shareholder purchases shares of their own company.

Direct holdings: Shares owned personally by an individual, not through trusts, funds, or other entities.

Indirect holdings: Shares owned through another entity, such as a trust or partnership, rather than held personally.

Derivative activity: Transactions involving financial contracts like options or futures, whose value is based on underlying assets.

Weighted average price: The average price paid per share, weighted by the number of shares bought at each price.

Accumulation: The process of steadily increasing ownership of a security over time.

Median purchase size: The middle value of all purchase sizes in a data set, used to show typical transaction size.

Dividend yield: Annual dividends per share divided by the share price, expressed as a percentage.

Metallurgical coal: Coal used primarily in steelmaking, distinct from thermal coal used for power generation.

TTM: The 12-month period ending with the most recent quarterly report.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.