AMG Advanced Metallurgical Group NV Insider Invests $1 Million
When top-level insiders buy company stock, it often signals that the outlook for the business and its share price is attractive. This report highlights a recent large trade from a top-level insider at AMG Advanced Metallurgical Group N.V. (AMG:NA).
AMG is a leading global provider of advanced metallurgical solutions and technologies. Its stock is listed on Euronext Amsterdam and has a market cap of approximately €1.12 billion.
Insider Buying at AMG
2iQ data shows that on March 14, 2023, Steve Hanke, the Chairman of the Supervisory Board, purchased 26,200 AMG shares at a price of €35.80 per share. This trade cost the insider €937,960 ($1.01 million) and increased his holding to 92,978 shares.
Increased AMG Holdings
The Chairman’s trade is noteworthy for several reasons. Firstly, the scale of the trade stands out, especially when compared to the Chairman's previous purchases. 2iQ last reported on AMG insider buying in August 2022, when the Chairman was part of a cluster buy where he invested €967,216.
Since that August cluster, AMG's stock price has risen by over 30% and hit a peak of 50.08% increase when the stock hit €39.86 on March 3, 2023. The insider's previous trades were very well-timed, and the fact that he has invested in another large-scale trade suggests he is confident the stock price will rise again.
It's worth noting that Steve Hanke is a decorated businessman and economist, having served as a Professor of Applied Economics at Johns Hopkins University and as a Senior Economist at the Council of Economic Advisers under President Reagan. His extensive background and tenure as Chairman of the Supervisory Board offer him a great understanding of AMG's potential.
Positive Q4 2022 Results
AMG recently posted positive Q4 2022 results prior to Steve Hanke's trades.
The company reported Q4 2022 revenue of $390 million, an 18% increase compared to Q4 2021. AMG also posted an EBITDA of $104 million, more than double the fourth quarter of 2021, and drove AMG to a record-setting full-year EBITDA of $343 million.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, stated, "AMG's full-year 2022 EBITDA, revenue, gross profit, operating cash flows, return on capital employed, and net income were the highest in the company's history by significant margins. This result is due to the AMG Clean Energy Materials segment, specifically AMG Lithium and its Brazil operation with an EBITDA contribution of $215 million, or 63% of the total EBITDA for the year."
In conclusion, given the positive Q4 2022 results and the insider buying by the Chairman, we see the insider buying as a bullish development for AMG Advanced Metallurgical Group N.V.'s stock.
AMG’s recent insider buying was among the most significant cluster buying signals we reported on in 2022. Read our full roundup of cluster buying from the past 12 months here.
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