Morgan Stanley Has Lowered Expectations for Ramaco Resources (NASDAQ:METC) Stock Price

Key Points

• Morgan Stanley cut Ramaco Resources’ price target from $13 to $11 while maintaining an “equal weight” rating, implying roughly 10% downside from the stock’s $12.23 opening price.
• Analyst sentiment is mixed but leans cautious: the consensus rating is “Hold” with a $22.43 target, while recent firms have issued ratings ranging from “Strong Buy” to “Strong Sell.”
• Ramaco reported a quarterly loss of $0.26 per share and revenue of $122.32 million, below expectations of $133.11 million; the company also posted negative margins and return on equity, and a major shareholder recently sold 500,000 shares.

Ramaco Resources (NASDAQ:METC - Get Free Report) had its price objective decreased by equities research analysts at Morgan Stanley from $13.00 to $11.00 in a research report issued on Tuesday, Marketbeat.com reports. The brokerage currently has an "equal weight" rating on the energy company's stock. Morgan Stanley's price target indicates a potential downside of 10.06% from the company's current price.

A number of other equities analysts have also recently issued reports on the company. Robert W. Baird restated a "neutral" rating and set a $13.00 target price on shares of Ramaco Resources in a report on Tuesday. Benchmark lowered their price target on Ramaco Resources from $38.00 to $26.00 and set a "buy" rating for the company in a research note on Thursday, August 6th. Weiss Ratings lowered shares of Ramaco Resources from a "sell (d)" rating to a "sell (d-)" rating in a research note on Thursday, August 6th. Zacks Research cut shares of Ramaco Resources from a "hold" rating to a "strong sell" rating in a report on Friday, July 17th. Finally, Wall Street Zen raised shares of Ramaco Resources from a "strong sell" rating to a "sell" rating in a research note on Saturday, August 8th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, Ramaco Resources has an average rating of "Hold" and a consensus target price of $22.43.

Ramaco Resources Trading Down 0.2%

Shares of NASDAQ METC opened at $12.23 on Tuesday. The company's 50 day simple moving average is $12.05 and its 200 day simple moving average is $14.28. Ramaco Resources has a fifty-two week low of $8.56 and a fifty-two week high of $57.80. The firm has a market capitalization of $775.24 million, a P/E ratio of -11.43 and a beta of 1.37. The company has a debt-to-equity ratio of 1.23, a current ratio of 4.23 and a quick ratio of 3.31.

Ramaco Resources (NASDAQ:METC - Get Free Report) last issued its earnings results on Tuesday, August 4th. The energy company reported ($0.26) EPS for the quarter, meeting the consensus estimate of ($0.26). Ramaco Resources had a negative net margin of 11.98% and a negative return on equity of 13.54%. The company had revenue of $122.32 million during the quarter, compared to analysts' expectations of $133.11 million. On average, analysts predict that Ramaco Resources will post -0.76 EPS for the current year.

Insider Activity

In other news, major shareholder Discovery Capital Management, sold 500,000 shares of the business's stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $9.57, for a total value of $4,785,000.00. Following the sale, the insider directly owned 4,811,360 shares in the company, valued at $46,044,715.20. The trade was a 9.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 46.07% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Allworth Financial LP lifted its stake in Ramaco Resources by 3,603.6% in the 3rd quarter. Allworth Financial LP now owns 1,037 shares of the energy company's stock valued at $34,000 after acquiring an additional 1,009 shares in the last quarter. Advisory Services Network LLC bought a new position in shares of Ramaco Resources during the 3rd quarter worth approximately $38,000. Quarry LP bought a new stake in shares of Ramaco Resources in the fourth quarter worth $27,000. Caitong International Asset Management Co. Ltd lifted its position in shares of Ramaco Resources by 14,250.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,722 shares of the energy company's stock worth $31,000 after purchasing an additional 1,710 shares in the last quarter. Finally, Sunbelt Securities Inc. boosted its holdings in Ramaco Resources by 400.0% during the third quarter. Sunbelt Securities Inc. now owns 2,500 shares of the energy company's stock worth $83,000 after purchasing an additional 2,000 shares during the last quarter. 74.49% of the stock is currently owned by institutional investors.

About Ramaco Resources

Ramaco Resources, Inc NASDAQ: METC is a U.S.-based producer of premium metallurgical coal and industrial minerals, focused on supplying the steel and allied industries. The company’s operations are centered in the Appalachian region of West Virginia, where it develops, mines and processes high-carbon coal products designed to meet the quality requirements of blast‐furnace and electric‐arc furnace steelmakers.

The firm’s flagship asset is the Elk Creek underground mine in Wyoming County, West Virginia, which began commercial production in 2019 and delivers a range of high‐grade metallurgical and anthracite coals.

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