Alpha Metallurgical Resources, Inc. (NYSE:AMR) Given Consensus Rating of "Reduce" by Analysts

Key Points

• Analysts have a “Reduce” consensus on Alpha Metallurgical Resources, with two sell ratings and five hold ratings. The average 12-month price target is $176, slightly above the reported share price of $174.14.
• Recent quarterly results showed a 10.4% year-over-year revenue decline to $421.29 million, though adjusted earnings of a $0.96-per-share loss narrowly beat estimates. Analysts expect a full-year loss of approximately $2.40 per share.
• Insiders have been buying shares, including a director’s $2.26 million purchase; insiders own 18.2% of the company, while institutional investors control 84.29%.

Alpha Metallurgical Resources, Inc. (NYSE:AMR - Get Free Report) has received a consensus recommendation of "Reduce" from the seven ratings firms that are presently covering the stock, Marketbeat.com reports. Two analysts have rated the stock with a sell rating and five have given a hold rating to the company. The average 12-month price target among brokers that have covered the stock in the last year is $176.00.

AMR has been the topic of several recent analyst reports. Wall Street Zen cut shares of Alpha Metallurgical Resources from a "hold" rating to a "sell" rating in a report on Saturday, August 8th. Zacks Research lowered shares of Alpha Metallurgical Resources from a "hold" rating to a "strong sell" rating in a report on Thursday, August 27th. Weiss Ratings cut shares of Alpha Metallurgical Resources from a "sell (d)" rating to a "sell (e+)" rating in a research report on Tuesday, August 11th. B. Riley Financial cut their target price on shares of Alpha Metallurgical Resources from $189.00 to $185.00 and set a "neutral" rating on the stock in a research note on Thursday, August 20th. Finally, Jefferies Financial Group reiterated a "hold" rating and set a $160.00 price target on shares of Alpha Metallurgical Resources in a research report on Tuesday, July 21st.

Insiders Place Their Bets

In other news, Director Kenneth Courtis bought 10,000 shares of Alpha Metallurgical Resources stock in a transaction on Tuesday, September 8th. The shares were purchased at an average price of $225.83 per share, for a total transaction of $2,258,300.00. Following the acquisition, the director owned 1,035,394 shares of the company's stock, valued at approximately $233,823,027.02. The trade was a 0.98% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Over the last quarter, insiders purchased 35,000 shares of company stock worth $7,388,400. Insiders own 18.20% of the company's stock.

Institutional Investors Weigh In On Alpha Metallurgical Resources

Several hedge funds and other institutional investors have recently added to or reduced their stakes in AMR. Nykredit A S purchased a new position in Alpha Metallurgical Resources during the 2nd quarter valued at about $25,000. Leonteq Securities AG purchased a new stake in Alpha Metallurgical Resources in the first quarter worth about $37,000. Meeder Asset Management Inc. bought a new position in shares of Alpha Metallurgical Resources during the second quarter valued at approximately $49,000. Hantz Financial Services Inc. increased its stake in shares of Alpha Metallurgical Resources by 67.9% during the fourth quarter. Hantz Financial Services Inc. now owns 403 shares of the energy company's stock valued at $81,000 after purchasing an additional 163 shares in the last quarter. Finally, Freestone Grove Partners LP purchased a new position in shares of Alpha Metallurgical Resources during the second quarter valued at approximately $76,000. 84.29% of the stock is owned by hedge funds and other institutional investors.

Alpha Metallurgical Resources Stock Down 5.7%

Shares of NYSE:AMR opened at $174.14 on Friday. The stock's 50-day moving average is $178.19 and its 200 day moving average is $184.72. The company has a market cap of $2.21 billion, a PE ratio of -48.64 and a beta of 0.68. The company has a debt-to-equity ratio of 0.01, a current ratio of 3.41 and a quick ratio of 2.37. Alpha Metallurgical Resources has a 1 year low of $133.64 and a 1 year high of $253.82.

Alpha Metallurgical Resources (NYSE:AMR - Get Free Report) last released its quarterly earnings data on Friday, August 7th. The energy company reported ($0.96) earnings per share for the quarter, topping the consensus estimate of ($0.97) by $0.01. The business had revenue of $421.29 million during the quarter, compared to analysts' expectations of $521.61 million. Alpha Metallurgical Resources had a negative return on equity of 2.99% and a negative net margin of 2.23%.The business's revenue was down 10.4% on a year-over-year basis. During the same quarter last year, the business posted ($0.38) EPS. Sell-side analysts anticipate that Alpha Metallurgical Resources will post -2.4 EPS for the current year.

About Alpha Metallurgical Resources

Alpha Metallurgical Resources, Inc is a mining company that produces and markets metallurgical coal, a key raw material used in steelmaking. Its products include premium and high-volatility metallurgical coal, as well as thermal coal, which is used primarily for electricity generation.

The company operates underground and surface mines and related processing facilities in Central Appalachia, principally in Virginia and West Virginia. Alpha sells its coal to domestic and international steel producers, coke manufacturers, and other industrial customers, serving markets in North America, Asia, Europe, and elsewhere.

Alpha Metallurgical Resources was formed from the restructuring of the former Alpha Natural Resources business and operated as Contura Energy before adopting its current name in 2021.

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