Forest Avenue Capital Management LP Acquires 106,461 Shares of Warrior Met Coal $HCC

Key Points

• Forest Avenue Capital Management LP increased its stake in Warrior Met Coal by 19.5%, owning 651,650 shares worth approximately $31 million.
• Warrior Met Coal reported earnings of $0.11 EPS, surpassing expectations and showing a 25% decline in revenue year-over-year.
• The company declared a quarterly dividend of $0.08 per share, representing an annualized yield of 0.5%.

Forest Avenue Capital Management LP raised its holdings in Warrior Met Coal (NYSE:HCC - Free Report) by 19.5% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 651,650 shares of the company's stock after acquiring an additional 106,461 shares during the quarter. Warrior Met Coal comprises approximately 4.2% of Forest Avenue Capital Management LP's holdings, making the stock its 12th largest position. Forest Avenue Capital Management LP owned about 1.24% of Warrior Met Coal worth $31,097,000 at the end of the most recent quarter.

A number of other institutional investors have also recently added to or reduced their stakes in HCC. LPL Financial LLC lifted its stake in Warrior Met Coal by 22.5% in the fourth quarter. LPL Financial LLC now owns 6,654 shares of the company's stock valued at $361,000 after acquiring an additional 1,221 shares during the last quarter. Wells Fargo & Company MN raised its position in shares of Warrior Met Coal by 25.5% in the fourth quarter. Wells Fargo & Company MN now owns 32,919 shares of the company's stock valued at $1,786,000 after purchasing an additional 6,688 shares during the period. Raymond James Financial Inc. bought a new position in shares of Warrior Met Coal in the fourth quarter valued at approximately $4,554,000. First Trust Advisors LP raised its position in shares of Warrior Met Coal by 38.4% in the fourth quarter. First Trust Advisors LP now owns 108,441 shares of the company's stock valued at $5,882,000 after purchasing an additional 30,107 shares during the period. Finally, Natixis bought a new position in shares of Warrior Met Coal in the fourth quarter valued at approximately $539,000. 92.28% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. BMO Capital Markets set a $55.00 price target on shares of Warrior Met Coal and gave the company a "market perform" rating in a research report on Thursday, August 7th. B. Riley dropped their price target on shares of Warrior Met Coal from $76.00 to $74.00 and set a "buy" rating on the stock in a research report on Tuesday, July 22nd. Finally, UBS Group lifted their price target on shares of Warrior Met Coal from $50.00 to $60.00 and gave the company a "neutral" rating in a research report on Wednesday, August 20th. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $63.50.

Warrior Met Coal Stock Performance

HCC stock traded down $0.42 on Wednesday, reaching $59.06. 437,899 shares of the company were exchanged, compared to its average volume of 991,499. Warrior Met Coal has a 12 month low of $38.00 and a 12 month high of $75.15. The stock's fifty day moving average price is $52.98 and its 200 day moving average price is $49.53. The firm has a market capitalization of $3.10 billion, a PE ratio of 76.70 and a beta of 0.69. The company has a debt-to-equity ratio of 0.12, a current ratio of 4.59 and a quick ratio of 3.44.

Warrior Met Coal (NYSE:HCC - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported $0.11 earnings per share for the quarter, topping analysts' consensus estimates of ($0.28) by $0.39. Warrior Met Coal had a net margin of 3.30% and a return on equity of 2.26%. The firm had revenue of $297.52 million for the quarter, compared to the consensus estimate of $285.63 million. During the same quarter in the previous year, the company earned $1.35 earnings per share. The business's revenue was down 25.0% compared to the same quarter last year. On average, research analysts anticipate that Warrior Met Coal will post 4.86 EPS for the current fiscal year.

Warrior Met Coal Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Friday, August 8th were issued a dividend of $0.08 per share. This represents a $0.32 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend was Friday, August 8th. Warrior Met Coal's payout ratio is currently 41.56%.

Warrior Met Coal Profile

Warrior Met Coal, Inc produces and exports non-thermal metallurgical coal for the steel industry. It operates two underground mines located in Alabama. The company sells its metallurgical coal to a customer base of blast furnace steel producers located primarily in Europe, South America, and Asia. It also sells natural gas, which is extracted as a byproduct from coal production.