Encompass Capital Advisors LLC Takes $33.13 Million Position in Warrior Met Coal $HCC

Key Points

• Encompass Capital Advisors initiated a large new position in Warrior Met Coal, buying 375,791 shares worth about $33.1 million. The stake represented about 1.4% of its portfolio and 0.71% of the company.
• Warrior Met Coal reported Q1 earnings of $1.37 per share, missing analyst expectations, and revenue of $458.6 million, also below forecasts. Even so, revenue rose 52.9% year over year and analysts still expect $6.89 EPS for the full year.
• The company paid a quarterly dividend of $0.08 per share, and analysts currently have a mixed view: the consensus rating is Hold with an average price target of $103.40. Insider Kelli K. Gant also sold 20,000 shares at $110 each in early June.

Encompass Capital Advisors LLC purchased a new stake in shares of Warrior Met Coal (NYSE:HCC - Free Report) during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 375,791 shares of the company's stock, valued at approximately $33,133,000. Warrior Met Coal makes up approximately 1.4% of Encompass Capital Advisors LLC's investment portfolio, making the stock its 27th biggest position. Encompass Capital Advisors LLC owned 0.71% of Warrior Met Coal as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Meeder Asset Management Inc. bought a new position in shares of Warrior Met Coal during the fourth quarter valued at $31,000. Parallel Advisors LLC lifted its holdings in shares of Warrior Met Coal by 272.1% during the fourth quarter. Parallel Advisors LLC now owns 413 shares of the company's stock valued at $36,000 after purchasing an additional 302 shares in the last quarter. IFP Advisors Inc bought a new position in shares of Warrior Met Coal during the fourth quarter valued at $37,000. EverSource Wealth Advisors LLC lifted its holdings in shares of Warrior Met Coal by 217.2% during the second quarter. EverSource Wealth Advisors LLC now owns 682 shares of the company's stock valued at $31,000 after purchasing an additional 467 shares in the last quarter. Finally, Jones Financial Companies Lllp lifted its holdings in shares of Warrior Met Coal by 4,337.5% during the third quarter. Jones Financial Companies Lllp now owns 710 shares of the company's stock valued at $45,000 after purchasing an additional 694 shares in the last quarter. 92.28% of the stock is owned by institutional investors.

Warrior Met Coal Stock Up 2.0%

Warrior Met Coal stock opened at $95.29 on Thursday. The stock has a market cap of $5.03 billion, a PE ratio of 36.37 and a beta of 0.62. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.42 and a current ratio of 3.48. Warrior Met Coal has a one year low of $40.80 and a one year high of $110.39. The stock has a fifty day moving average of $91.25 and a 200 day moving average of $89.63.

Warrior Met Coal (NYSE:HCC - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported $1.37 EPS for the quarter, missing analysts' consensus estimates of $1.41 by ($0.04). The firm had revenue of $458.59 million for the quarter, compared to analysts' expectations of $467.57 million. Warrior Met Coal had a net margin of 9.36% and a return on equity of 6.44%. The firm's revenue was up 52.9% compared to the same quarter last year. During the same quarter last year, the company posted ($0.16) EPS. As a group, sell-side analysts predict that Warrior Met Coal will post 6.89 EPS for the current year.

Warrior Met Coal Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 7th. Investors of record on Friday, May 1st were given a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date was Friday, May 1st. Warrior Met Coal's dividend payout ratio is 12.21%.

Analysts Set New Price Targets

HCC has been the topic of a number of research analyst reports. UBS Group lowered their price target on Warrior Met Coal from $104.00 to $102.00 and set a "buy" rating on the stock in a report on Friday, May 1st. B. Riley Financial upped their price target on Warrior Met Coal from $117.00 to $123.00 and gave the company a "buy" rating in a report on Wednesday, June 10th. Weiss Ratings raised Warrior Met Coal from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday, June 3rd. Zacks Research cut Warrior Met Coal from a "hold" rating to a "strong sell" rating in a research report on Tuesday, May 5th. Finally, Citigroup reiterated a "buy" rating on shares of Warrior Met Coal in a research report on Wednesday, June 10th. Four investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $103.40.

Insider Buying and Selling

In related news, insider Kelli K. Gant sold 20,000 shares of the company's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $110.00, for a total transaction of $2,200,000.00. Following the completion of the sale, the insider owned 67,775 shares in the company, valued at approximately $7,455,250. This represents a 22.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 2.10% of the company's stock.

Warrior Met Coal Profile

Warrior Met Coal NYSE: HCC is a leading producer of premium metallurgical coal, operating deep underground mining complexes in Central Alabama's Blue Creek and Brookwood mining districts. The company focuses exclusively on the extraction and sale of high-grade hard coking coal, a critical raw material used in steel production. Its mining operations harness longwall mining technology and rigorous safety protocols to deliver consistent coal quality to customers worldwide.

Warrior Met Coal's product portfolio centers on premium hard coking coal, semisoft coking coal, and pulverized coal injection (PCI) products.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.