Alpha Metallurgical Resources (NYSE:AMR) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Alpha Metallurgical Resources shares opened significantly higher at $148.58 after reporting earnings of ($0.38) per share, surpassing analyst expectations of ($1.60) EPS.
• Despite the earnings beat, the company experienced a 31.6% decline in revenue compared to the same quarter last year, where it had reported $4.49 EPS.
• Institutional investors now hold approximately 84.29% of the company's stock, indicating strong institutional confidence in Alpha Metallurgical Resources.

Alpha Metallurgical Resources, Inc. (NYSE:AMR - Get Free Report) shares gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $129.45, but opened at $148.58. Alpha Metallurgical Resources shares last traded at $151.82, with a volume of 216,919 shares changing hands.

The energy company reported ($0.38) earnings per share for the quarter, topping analysts' consensus estimates of ($2.38) by $2.00. Alpha Metallurgical Resources had a net margin of 1.01% and a return on equity of 1.62%. The business had revenue of $550.27 million during the quarter, compared to analysts' expectations of $552.15 million. During the same period in the previous year, the company earned $4.49 earnings per share. Alpha Metallurgical Resources's revenue for the quarter was down 31.6% on a year-over-year basis.

Analysts Set New Price Targets

A number of analysts have recently weighed in on AMR shares. B. Riley reduced their price objective on shares of Alpha Metallurgical Resources from $173.00 to $171.00 and set a "buy" rating for the company in a research note on Tuesday. Wall Street Zen cut shares of Alpha Metallurgical Resources from a "hold" rating to a "sell" rating in a research note on Thursday, May 22nd. Finally, Jefferies Financial Group initiated coverage on shares of Alpha Metallurgical Resources in a research note on Tuesday, July 1st. They set a "hold" rating and a $110.00 target price for the company.

Hedge Funds Weigh In On Alpha Metallurgical Resources

Several large investors have recently bought and sold shares of the stock. Signaturefd LLC increased its holdings in Alpha Metallurgical Resources by 306.1% in the 1st quarter. Signaturefd LLC now owns 199 shares of the energy company's stock valued at $25,000 after buying an additional 150 shares during the period. AdvisorNet Financial Inc increased its holdings in Alpha Metallurgical Resources by 214.3% in the 1st quarter. AdvisorNet Financial Inc now owns 220 shares of the energy company's stock valued at $28,000 after buying an additional 150 shares during the period. Summit Securities Group LLC bought a new stake in Alpha Metallurgical Resources in the 1st quarter valued at $38,000. Public Employees Retirement System of Ohio bought a new stake in Alpha Metallurgical Resources in the 4th quarter valued at $60,000. Finally, Opal Wealth Advisors LLC bought a new stake in Alpha Metallurgical Resources in the 1st quarter valued at $64,000. 84.29% of the stock is currently owned by institutional investors and hedge funds.

Alpha Metallurgical Resources Trading Up 16.0%

The stock has a market cap of $1.96 billion, a P/E ratio of -52.67 and a beta of 0.59. The company's fifty day simple moving average is $117.09 and its 200-day simple moving average is $130.71.

About Alpha Metallurgical Resources

Alpha Metallurgical Resources, Inc, a mining company, produces, processes, and sells met and thermal coal in Virginia and West Virginia. The company offers metallurgical coal products. It operates twenty-two active mines and nine coal preparation and load-out facilities. The company was formerly known as Contura Energy, Inc and changed its name to Alpha Metallurgical Resources, Inc in February 2021.