Alliance Resource Partners (NASDAQ:ARLP) Shares Gap Down on Disappointing Earnings

Key Points

• Alliance Resource Partners' shares fell sharply, opening at $26.45 after closing at $27.98, following a weak earnings report that revealed an EPS of $0.55 against an expected $0.61.
• The company announced a quarterly dividend of $0.60 per share, which equates to an annualized yield of 9.02%, despite a high dividend payout ratio of 132.08%.
• Despite the recent earnings miss, some analysts, including Benchmark and Wall Street Zen, have maintained or upgraded their ratings, with price targets around $29.00.

Alliance Resource Partners, L.P. (NASDAQ:ARLP - Get Free Report)'s share price gapped down prior to trading on Monday following a dissappointing earnings announcement. The stock had previously closed at $27.98, but opened at $26.45. Alliance Resource Partners shares last traded at $26.63, with a volume of 373,184 shares changing hands.

The energy company reported $0.55 earnings per share for the quarter, missing analysts' consensus estimates of $0.61 by ($0.06). Alliance Resource Partners had a net margin of 10.30% and a return on equity of 14.16%. The business had revenue of $547.46 million for the quarter, compared to the consensus estimate of $583.57 million.

Alliance Resource Partners Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 14th. Shareholders of record on Thursday, August 7th will be given a $0.60 dividend. The ex-dividend date is Thursday, August 7th. This represents a $2.40 annualized dividend and a yield of 9.1%. Alliance Resource Partners's dividend payout ratio is 132.08%.

Analyst Ratings Changes

ARLP has been the subject of a number of analyst reports. Benchmark reaffirmed a "buy" rating and set a $29.00 price objective on shares of Alliance Resource Partners in a report on Tuesday, April 29th. Wall Street Zen raised shares of Alliance Resource Partners from a "hold" rating to a "buy" rating in a report on Sunday, May 4th.

Hedge Funds Weigh In On Alliance Resource Partners

Several institutional investors have recently added to or reduced their stakes in ARLP. Kingstone Capital Partners Texas LLC bought a new position in Alliance Resource Partners during the 2nd quarter valued at about $17,847,000. Raymond James Financial Inc. bought a new position in shares of Alliance Resource Partners in the fourth quarter worth about $14,564,000. Huntleigh Advisors Inc. bought a new position in shares of Alliance Resource Partners in the first quarter worth about $14,190,000. MGO One Seven LLC bought a new position in shares of Alliance Resource Partners in the first quarter worth about $6,220,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Alliance Resource Partners by 74.1% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 494,872 shares of the energy company's stock worth $13,500,000 after acquiring an additional 210,644 shares during the last quarter. 18.11% of the stock is owned by institutional investors.

Alliance Resource Partners Stock Performance

The stock's 50 day simple moving average is $26.40 and its two-hundred day simple moving average is $26.57. The company has a debt-to-equity ratio of 0.24, a current ratio of 1.93 and a quick ratio of 1.37. The company has a market capitalization of $3.40 billion, a P/E ratio of 14.63 and a beta of 0.54.

Alliance Resource Partners Company Profile

Alliance Resource Partners, L.P., a diversified natural resource company, produces and markets coal primarily to utilities and industrial users in the United States. The company operates through four segments: Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties, and Coal Royalties.