Alpha Metallurgical Resources (NYSE:AMR) Shares Gap Down - Time to Sell?

Key Points

• Shares gapped down, opening at $178.93 after a prior close of $193.43, with notable intraday volatility reported.
• Analyst sentiment is weak — MarketBeat shows a consensus rating of "Reduce" (four Holds, two Sells) and an average price target of $195.33.
• Q1 results showed EPS of ($0.86) in line with expectations but revenue missed materially at $447.3M versus $535.2M estimated, and the company reports negative net margin and return on equity.

Alpha Metallurgical Resources, Inc. (NYSE:AMR - Get Free Report)'s share price gapped down prior to trading on Friday . The stock had previously closed at $193.43, but opened at $178.93. Alpha Metallurgical Resources shares last traded at $195.8680, with a volume of 28,184 shares.

Analyst Ratings Changes

AMR has been the subject of several research analyst reports. Weiss Ratings reissued a "sell (d)" rating on shares of Alpha Metallurgical Resources in a research note on Friday, March 27th. Texas Capital downgraded Alpha Metallurgical Resources from a "strong-buy" rating to a "hold" rating in a research note on Thursday, January 29th. B. Riley Financial boosted 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. Zacks Research cut shares of Alpha Metallurgical Resources from a "hold" rating to a "strong sell" rating in a report on Tuesday. Finally, Benchmark restated a "hold" rating on shares of Alpha Metallurgical Resources in a report on Monday, March 2nd. Four investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Alpha Metallurgical Resources currently has a consensus rating of "Reduce" and an average target price of $195.33.

Alpha Metallurgical Resources Stock Performance

The firm's fifty day moving average price is $193.08 and its 200 day moving average price is $191.49. The company has a current ratio of 4.47, a quick ratio of 3.53 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $2.49 billion, a PE ratio of -41.31 and a beta of 0.60.

Alpha Metallurgical Resources (NYSE:AMR - Get Free Report) last posted its quarterly earnings results on Friday, May 8th. The energy company reported ($0.86) EPS for the quarter, meeting the consensus estimate of ($0.86). Alpha Metallurgical Resources had a negative net margin of 2.90% and a negative return on equity of 3.88%. The business had revenue of $447.32 million for the quarter, compared to analysts' expectations of $535.15 million. During the same period in the previous year, the company posted ($2.60) EPS. Alpha Metallurgical Resources's revenue was down 1.3% on a year-over-year basis. On average, research analysts anticipate that Alpha Metallurgical Resources, Inc. will post 11.98 earnings per share for the current year.

Insider Buying and Selling

In other Alpha Metallurgical Resources news, Director Kenneth S. Courtis acquired 8,000 shares of the firm's stock in a transaction that occurred on Thursday, March 12th. The stock was purchased at an average cost of $191.07 per share, for a total transaction of $1,528,560.00. Following the completion of the acquisition, the director owned 874,537 shares of the company's stock, valued at approximately $167,097,784.59. This trade represents a 0.92% increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Joshua Todd Munsey sold 2,523 shares of the company's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $183.24, for a total transaction of $462,314.52. Following the completion of the sale, the chief financial officer owned 4,735 shares of the company's stock, valued at $867,641.40. This represents a 34.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders acquired 58,000 shares of company stock worth $10,530,610. Corporate insiders own 18.20% of the company's stock.

Institutional Investors Weigh In On Alpha Metallurgical Resources

A number of large investors have recently bought and sold shares of the business. First Citizens Bank & Trust Co. boosted its holdings in Alpha Metallurgical Resources by 1.8% in the fourth quarter. First Citizens Bank & Trust Co. now owns 4,058 shares of the energy company's stock worth $811,000 after purchasing an additional 72 shares in the last quarter. ProShare Advisors LLC boosted its holdings in Alpha Metallurgical Resources by 3.3% in the fourth quarter. ProShare Advisors LLC now owns 2,266 shares of the energy company's stock worth $453,000 after purchasing an additional 73 shares in the last quarter. Mainstay Capital Management LLC ADV boosted its holdings in Alpha Metallurgical Resources by 5.9% in the fourth quarter. Mainstay Capital Management LLC ADV now owns 1,326 shares of the energy company's stock worth $265,000 after purchasing an additional 74 shares in the last quarter. The Manufacturers Life Insurance Company boosted its holdings in Alpha Metallurgical Resources by 1.2% in the second quarter. The Manufacturers Life Insurance Company now owns 6,256 shares of the energy company's stock worth $704,000 after purchasing an additional 76 shares in the last quarter. Finally, Envestnet Portfolio Solutions Inc. boosted its holdings in Alpha Metallurgical Resources by 2.0% in the fourth quarter. Envestnet Portfolio Solutions Inc. now owns 3,907 shares of the energy company's stock worth $781,000 after purchasing an additional 78 shares in the last quarter. 84.29% of the stock is currently owned by institutional investors.

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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