Ranmore Fund Management Ltd Acquires New Stake in Peabody Energy Corporation (NYSE:BTU)

Key Points

• Ranmore Fund Management Ltd acquired a new position in Peabody Energy Corporation, purchasing 393,873 shares valued at approximately $5.3 million, making it the firm's 14th largest position.
• Peabody Energy's recent earnings report showed a net loss of ($0.06) per share, missing expected estimates and reflecting a 14.6% year-over-year decline in revenue.
• The firm announced a quarterly dividend of $0.075 per share, with a dividend yield of 1.7%, scheduled for payment to shareholders on September 3rd.

Ranmore Fund Management Ltd purchased a new position in Peabody Energy Corporation (NYSE:BTU - Free Report) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund purchased 393,873 shares of the coal producer's stock, valued at approximately $5,337,000. Peabody Energy accounts for about 3.2% of Ranmore Fund Management Ltd's investment portfolio, making the stock its 14th largest position. Ranmore Fund Management Ltd owned about 0.32% of Peabody Energy at the end of the most recent reporting period.

A number of other large investors have also bought and sold shares of BTU. Dimensional Fund Advisors LP boosted its position in shares of Peabody Energy by 1.2% during the fourth quarter. Dimensional Fund Advisors LP now owns 7,346,729 shares of the coal producer's stock valued at $153,841,000 after purchasing an additional 88,466 shares in the last quarter. Progeny 3 Inc. boosted its position in shares of Peabody Energy by 1.1% during the fourth quarter. Progeny 3 Inc. now owns 3,620,014 shares of the coal producer's stock valued at $75,803,000 after purchasing an additional 40,000 shares in the last quarter. Northern Trust Corp boosted its position in shares of Peabody Energy by 2.1% during the fourth quarter. Northern Trust Corp now owns 1,620,897 shares of the coal producer's stock valued at $33,942,000 after purchasing an additional 33,742 shares in the last quarter. Hudson Bay Capital Management LP boosted its position in shares of Peabody Energy by 30.4% during the fourth quarter. Hudson Bay Capital Management LP now owns 1,543,915 shares of the coal producer's stock valued at $32,330,000 after purchasing an additional 360,000 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its position in shares of Peabody Energy by 8.5% during the first quarter. Charles Schwab Investment Management Inc. now owns 1,518,351 shares of the coal producer's stock valued at $20,574,000 after purchasing an additional 118,307 shares in the last quarter. 87.44% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on BTU. Benchmark dropped their price target on Peabody Energy from $26.00 to $23.00 and set a "buy" rating on the stock in a research report on Wednesday, May 7th. UBS Group began coverage on Peabody Energy in a research report on Tuesday, July 15th. They set a "neutral" rating and a $14.00 price target on the stock. Finally, Wall Street Zen lowered Peabody Energy from a "hold" rating to a "sell" rating in a research report on Saturday, August 2nd. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and four have assigned a buy rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $21.60.

Peabody Energy Stock Performance

Shares of NYSE:BTU traded down $0.38 during midday trading on Friday, reaching $17.59. 2,967,257 shares of the company's stock traded hands, compared to its average volume of 5,716,526. The company has a market cap of $2.14 billion, a price-to-earnings ratio of 17.08 and a beta of 0.53. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.64 and a current ratio of 2.21. Peabody Energy Corporation has a one year low of $9.61 and a one year high of $29.94. The stock has a 50 day moving average of $15.20 and a 200 day moving average of $14.37.

Peabody Energy (NYSE:BTU - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The coal producer reported ($0.06) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.02). The business had revenue of $890.10 million for the quarter, compared to the consensus estimate of $944.27 million. Peabody Energy had a net margin of 3.43% and a return on equity of 4.41%. The company's revenue for the quarter was down 14.6% compared to the same quarter last year. During the same period in the previous year, the company earned $1.42 earnings per share. As a group, equities research analysts anticipate that Peabody Energy Corporation will post 2.61 EPS for the current fiscal year.

Peabody Energy Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders of record on Thursday, August 14th will be issued a dividend of $0.075 per share. This represents a $0.30 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend is Thursday, August 14th. Peabody Energy's dividend payout ratio is presently 29.13%.

Peabody Energy Company Profile

Peabody Energy Corporation engages in coal mining business in the United States, Japan, Taiwan, Australia, India, Brazil, Belgium, Chile, France, Indonesia, China, Vietnam, South Korea, Germany, and internationally. The company operates through Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S.