Alpha Metallurgical Resources (NYSE:AMR) Downgraded to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research downgraded Alpha Metallurgical Resources (AMR) from "hold" to "strong sell", reinforcing a cautious consensus (MarketBeat average rating "Reduce") with a $195.33 price target.
• AMR's latest quarter showed EPS of ($1.34) that matched estimates but revenue of $436.3M missed the $538.5M consensus and fell 15.7% year-over-year, with a negative net margin (-2.9%) and negative ROE (-3.88%), indicating operational pressure.
• The stock opened at $197.06 (52-week range $97.41–$253.82) with a $2.52B market cap and a negative P/E (~-41.6); insiders have both sold shares recently and collectively bought 58,000 shares (~$10.5M) over the past 90 days, owning 18.2% of the company.

Alpha Metallurgical Resources (NYSE:AMR - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

AMR has been the topic of a number of other research reports. Jefferies Financial Group reissued a "hold" rating and set a $185.00 price objective on shares of Alpha Metallurgical Resources in a report on Monday, March 2nd. Texas Capital downgraded shares of Alpha Metallurgical Resources from a "strong-buy" rating to a "hold" rating in a report on Thursday, January 29th. B. Riley Financial upped their price target on shares of Alpha Metallurgical Resources from $203.00 to $207.00 and gave the company a "neutral" rating in a report on Thursday, March 5th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Alpha Metallurgical Resources in a report on Friday, March 27th. Finally, Atlantic Securities set a $194.00 price target on shares of Alpha Metallurgical Resources in a report on Thursday, April 30th. Four analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Alpha Metallurgical Resources has an average rating of "Reduce" and a consensus price target of $195.33.

Alpha Metallurgical Resources Stock Up 4.5%

AMR stock opened at $197.06 on Tuesday. The company has a market cap of $2.52 billion, a P/E ratio of -41.57 and a beta of 0.60. Alpha Metallurgical Resources has a 52 week low of $97.41 and a 52 week high of $253.82. The company's 50-day moving average price is $192.82 and its 200 day moving average price is $191.21. The company has a current ratio of 4.47, a quick ratio of 3.53 and a debt-to-equity ratio of 0.01.

Alpha Metallurgical Resources (NYSE:AMR - Get Free Report) last released its quarterly earnings data on Friday, February 27th. The energy company reported ($1.34) EPS for the quarter, hitting analysts' consensus estimates of ($1.34). The firm had revenue of $436.33 million for the quarter, compared to the consensus estimate of $538.45 million. Alpha Metallurgical Resources had a negative net margin of 2.90% and a negative return on equity of 3.88%. The firm's revenue was down 15.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.16) earnings per share. On average, research analysts expect that Alpha Metallurgical Resources will post 11.98 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Daniel E. Horn sold 971 shares of the business's stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $170.05, for a total value of $165,118.55. Following the completion of the transaction, the insider owned 7,320 shares of the company's stock, valued at $1,244,766. The trade was a 11.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Joshua Todd Munsey sold 2,523 shares of the business's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $183.24, for a total transaction of $462,314.52. Following the completion of the transaction, the chief financial officer directly owned 4,735 shares of the company's stock, valued at approximately $867,641.40. This represents a 34.76% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders bought a total of 58,000 shares of company stock valued at $10,530,610 over the last 90 days. Insiders own 18.20% of the company's stock.

Hedge Funds Weigh In On Alpha Metallurgical Resources

Institutional investors have recently modified their holdings of the company. Los Angeles Capital Management LLC acquired a new position in shares of Alpha Metallurgical Resources in the fourth quarter valued at approximately $29,000. Caitong International Asset Management Co. Ltd increased its position in Alpha Metallurgical Resources by 215.4% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 164 shares of the energy company's stock worth $33,000 after purchasing an additional 112 shares during the last quarter. Leonteq Securities AG acquired a new position in Alpha Metallurgical Resources during the first quarter worth approximately $37,000. Hantz Financial Services Inc. increased its position in Alpha Metallurgical Resources by 361.5% during the third quarter. Hantz Financial Services Inc. now owns 240 shares of the energy company's stock worth $39,000 after purchasing an additional 188 shares during the last quarter. Finally, CWM LLC increased its position in Alpha Metallurgical Resources by 146.0% during the third quarter. CWM LLC now owns 246 shares of the energy company's stock worth $40,000 after purchasing an additional 146 shares during the last quarter. Institutional investors and hedge funds own 84.29% of the company's stock.

About Alpha Metallurgical Resources

Alpha Metallurgical Resources, Inc NYSE: AMR is a leading pure-play producer of high-grade metallurgical coal, primarily serving the global steelmaking industry. Headquartered in Bristol, Virginia, the company operates multiple underground and surface mining complexes across the central Appalachian and Illinois basins. Its production portfolio focuses on premium raw and semi-soft coking coal products tailored to meet the specifications of steel producers worldwide.

Formed in July 2021 through the spin-out of Contura Energy's metallurgical coal business, Alpha Metallurgical Resources has built a reputation for operational excellence and cost-efficient mining.

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