Insider transactions can give investors a more complete view of activity within the world’s publicly-listed companies. No one has more information in relation to a company, and its prospects, than its leaders.
In this report, we are going to highlight insider buying at AMG Advanced Metallurgical (AMG:NA). AMG Advanced Metallurgical is a Dutch company that produces highly engineered specialty metals and mineral products. It also provides related vacuum furnace systems and services to a range of markets. The company is listed on the Euronext Amsterdam stock exchange and currently has a market capitalization of €840.8 million.
AMG Advanced Metallurgical: Insider Buying
Our data shows that between November 1 and November 3, two top-level insiders at AMG Advanced Metallurgical purchased stock. Over this period, Chairman and CEO Dr. Heinz Schimmelbusch purchased 20,000 shares at an average price of €25.17 per share, spending €503,300 on stock. Meanwhile, COO Eric Jackson picked up 5,000 shares at a price of €25.74 per share, spending €128,700 on stock.
This buying activity is worth highlighting due to the fact that these two insiders have made well-timed trades in the recent past. The last time these two insiders purchased stock was September 25, 2020, when it was trading near €14. In the six months following their purchases, the stock rose to €30.
It’s worth noting that both of these insiders have extensive company experience. Dr. Schimmelbusch was appointed CEO and Chairman of the Management Board in November 2006, and he was reappointed in 2021 for a term of two years earlier this year. Meanwhile, Mr. Jackson was appointed a member of the AMG Management Board in April 2007 and became COO in 2007. Given their experience, they are likely to have a good understanding of the group's prospects.
Strong Q3 Results
AMG Advanced Metallurgical recently posted a strong set of third-quarter results.
For the period, revenue was up 58% to $311.9 million while EBITDA amounted to $33.1 million – more than double the Q3 2020 EBITDA of $14.1 million – marking the fifth straight quarter of sequential improvement. Cash from operating activities was $17.6 million for the quarter, and $60.6 million for the first nine months of the year – more than triple the total cash from operating activities for the full year 2020.
While all segments performed well during the quarter, the standout was the Clean Energy Materials segment. Here, revenue was up 87% year on year to $105 million while EBITDA was up 452% to $18 million. The strong performance was driven by higher sales volumes of lithium concentrate, as well as higher prices in vanadium, tantalum, and lithium concentrate.
In light of these strong results, we see the insider buying here as a bullish indicator.