Encompass Capital Advisors LLC Makes New $13.25 Million Investment in Ramaco Resources, Inc. $METC

Key Points

• Encompass Capital Advisors LLC invested approximately $13.25 million in Ramaco Resources, acquiring 1,609,727 shares, representing a 3.62% stake in the company.
• Recent analyst ratings show optimism for Ramaco Resources, with Benchmark and Jefferies Financial Group raising their price targets to $24.00 and $27.00 respectively, while holding a "buy" rating.
• Ramaco Resources reported a quarterly earnings miss with a loss of ($0.29) per share compared to estimates of ($0.22), while revenue for the period was up 1.5% year-over-year at $152.96 million.

Encompass Capital Advisors LLC purchased a new position in Ramaco Resources, Inc. (NASDAQ:METC - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 1,609,727 shares of the energy company's stock, valued at approximately $13,248,000. Encompass Capital Advisors LLC owned approximately 3.62% of Ramaco Resources as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors also recently modified their holdings of the company. Dimensional Fund Advisors LP lifted its holdings in shares of Ramaco Resources by 8.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,745,409 shares of the energy company's stock worth $17,907,000 after buying an additional 142,423 shares in the last quarter. CenterBook Partners LP boosted its stake in Ramaco Resources by 151.0% during the 1st quarter. CenterBook Partners LP now owns 1,678,594 shares of the energy company's stock valued at $13,815,000 after purchasing an additional 1,009,782 shares during the last quarter. American Century Companies Inc. lifted its holdings in shares of Ramaco Resources by 8.9% during the 1st quarter. American Century Companies Inc. now owns 948,328 shares of the energy company's stock valued at $7,805,000 after buying an additional 77,371 shares during the period. Point72 Asset Management L.P. raised its holdings in Ramaco Resources by 98.9% in the 4th quarter. Point72 Asset Management L.P. now owns 696,531 shares of the energy company's stock worth $7,146,000 after purchasing an additional 346,265 shares during the period. Finally, Graham Capital Management L.P. purchased a new position in Ramaco Resources in the fourth quarter worth about $3,588,000. Institutional investors own 74.49% of the company's stock.

Ramaco Resources Stock Performance

Shares of NASDAQ:METC traded down $0.18 on Tuesday, reaching $25.76. The company's stock had a trading volume of 1,593,630 shares, compared to its average volume of 1,602,038. The stock's 50-day moving average is $21.21 and its two-hundred day moving average is $13.55. Ramaco Resources, Inc. has a 52-week low of $6.30 and a 52-week high of $28.40. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.36 and a quick ratio of 0.84. The stock has a market capitalization of $1.42 billion, a P/E ratio of -57.15 and a beta of 1.26.

Ramaco Resources (NASDAQ:METC - Get Free Report) last issued its earnings results on Thursday, July 31st. The energy company reported ($0.29) earnings per share for the quarter, missing the consensus estimate of ($0.22) by ($0.07). The company had revenue of $152.96 million for the quarter, compared to analyst estimates of $131.55 million. Ramaco Resources had a negative return on equity of 5.55% and a negative net margin of 3.17%.The company's quarterly revenue was down 1.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.08 earnings per share. As a group, sell-side analysts forecast that Ramaco Resources, Inc. will post 0.05 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on METC. Zacks Research upgraded Ramaco Resources from a "strong sell" rating to a "hold" rating in a report on Friday, August 29th. Wall Street Zen lowered shares of Ramaco Resources from a "hold" rating to a "sell" rating in a research note on Thursday, May 22nd. Jefferies Financial Group reissued a "buy" rating and issued a $27.00 target price (up from $15.00) on shares of Ramaco Resources in a research note on Wednesday, July 16th. Finally, Benchmark reaffirmed a "buy" rating and set a $24.00 price target (up previously from $14.00) on shares of Ramaco Resources in a research report on Tuesday, August 5th. Three research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $21.67.

Insider Transactions at Ramaco Resources

In other Ramaco Resources news, Director Peter A. Leidel sold 1,600,000 shares of the stock in a transaction that occurred on Friday, August 8th. The shares were sold at an average price of $18.75, for a total transaction of $30,000,000.00. Following the transaction, the director owned 2,502,930 shares of the company's stock, valued at $46,929,937.50. This trade represents a 39.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 36.20% of the company's stock.

About Ramaco Resources

Ramaco Resources, Inc engages in the development, operation, and sale of metallurgical coal. Its development portfolio includes the Elk Creek project that covers an area of approximately 20,200 acres located in southern West Virginia; the Berwind property covering an area of approximately 62,500 acres situated on the border of West Virginia and Virginia; the Knox Creek property, which covers an area of approximately 64,050 acres is located in Virginia; the Maben property covering an area of approximately 28,000 acres situated in southwestern Pennsylvania southern West Virginia; and the Brook Mine property that covers an area of approximately 16,000 acres located in northeastern Wyoming.