Core Natural Resources (NYSE:CNR) Shares Down 7.3% - Should You Sell?

Key Points

• Shares fell 7.3% intraday to about $92.61 (low $90.32) on Wednesday, with volume (~425,874) roughly 53% below the stock's average, after a prior close of $99.93.
• Earnings missed but analysts remain constructive. CNR reported a Q that missed EPS (‑$1.54 vs. ‑$0.78 expected) despite revenue rising 81.8% year-over-year, yet the consensus is a "Moderate Buy" with a $113.75 price target and UBS recently raised its target to $115 with a buy rating.
• Notable insider selling amid heavy institutional ownership. The CEO and a director recently sold large blocks (insiders sold 51,560 shares worth ~$5.12M in the last 90 days) while institutions hold about 86.5% of the stock.

Core Natural Resources, Inc. (NYSE:CNR - Get Free Report)'s stock price was down 7.3% during trading on Wednesday . The stock traded as low as $90.32 and last traded at $92.6090. Approximately 425,874 shares were traded during trading, a decline of 53% from the average daily volume of 905,957 shares. The stock had previously closed at $99.93.

Analyst Ratings Changes

Several equities research analysts recently commented on CNR shares. UBS Group boosted their target price on Core Natural Resources from $109.00 to $115.00 and gave the stock a "buy" rating in a report on Tuesday, March 24th. Wall Street Zen raised Core Natural Resources from a "sell" rating to a "hold" rating in a report on Saturday, March 21st. Zacks Research cut Core Natural Resources from a "hold" rating to a "strong sell" rating in a report on Thursday, March 5th. Finally, Weiss Ratings raised Core Natural Resources from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, March 19th. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Core Natural Resources has a consensus rating of "Moderate Buy" and a consensus price target of $113.75.

Core Natural Resources Price Performance

The business has a 50-day moving average price of $95.59 and a 200 day moving average price of $90.05. The company has a market cap of $4.75 billion, a price-to-earnings ratio of -31.10 and a beta of 0.25. The company has a current ratio of 1.60, a quick ratio of 1.15 and a debt-to-equity ratio of 0.10.

Core Natural Resources (NYSE:CNR - Get Free Report) last announced its quarterly earnings data on Thursday, February 12th. The energy company reported ($1.54) EPS for the quarter, missing analysts' consensus estimates of ($0.78) by ($0.76). Core Natural Resources had a negative net margin of 3.68% and a negative return on equity of 4.05%. The company had revenue of $1.04 billion for the quarter, compared to analyst estimates of $996.54 million. During the same quarter last year, the company posted $1.04 EPS. Core Natural Resources's revenue was up 81.8% on a year-over-year basis. As a group, research analysts expect that Core Natural Resources, Inc. will post 11.4 earnings per share for the current fiscal year.

Core Natural Resources Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 16th. Stockholders of record on Monday, March 2nd were given a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date was Monday, March 2nd. Core Natural Resources's dividend payout ratio is -13.29%.

Insider Activity

In other news, Director Richard A. Navarre sold 6,000 shares of the stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $91.70, for a total transaction of $550,200.00. Following the completion of the sale, the director owned 18,034 shares in the company, valued at approximately $1,653,717.80. This represents a 24.96% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO James A. Brock sold 40,760 shares of the stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $101.15, for a total value of $4,122,874.00. Following the sale, the chief executive officer owned 100,000 shares of the company's stock, valued at $10,115,000. This trade represents a 28.96% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 51,560 shares of company stock worth $5,118,890. Insiders own 2.49% of the company's stock.

Institutional Trading of Core Natural Resources

Several large investors have recently added to or reduced their stakes in CNR. Royal Bank of Canada acquired a new stake in Core Natural Resources during the 1st quarter valued at $2,037,000. AQR Capital Management LLC acquired a new stake in Core Natural Resources during the 1st quarter valued at $796,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in Core Natural Resources during the 1st quarter valued at $2,413,000. NewEdge Advisors LLC acquired a new stake in Core Natural Resources during the 1st quarter valued at $1,223,000. Finally, United Services Automobile Association acquired a new stake in Core Natural Resources during the 1st quarter valued at $256,000. 86.54% of the stock is owned by institutional investors and hedge funds.

Core Natural Resources Company Profile

Core Natural Resources, Inc, together with its subsidiaries, produces and sells bituminous coal in the United States and internationally. It operates through two segments, Pennsylvania Mining Complex (PAMC) and CONSOL Marine Terminal. The company's PAMC segment engages in the mining, preparing, and marketing of bituminous coal to power generators, industrial end-users, and metallurgical end-users. This segment includes the Bailey Mine, the Enlow Fork Mine, the Harvey Mine, and the central preparation plant.

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