Stock Traders Purchase High Volume of Call Options on American Resources (NASDAQ:AREC)

Key Points

• Options activity surged: Investors purchased 2,600 call options in American Resources, 35% above the typical volume of 1,919 contracts.
• Institutional ownership increased: Several major investors—including HITE Hedge Asset Management, Millennium Management, Goldman Sachs and Bank of America—added or initiated positions; institutions and hedge funds now own 9.32% of the stock.
• Shares remain under pressure: AREC fell 2.8% to $2.08, well below its 52-week high of $7.11. Analysts maintain a “Moderate Buy” consensus with an average price target of $6.00, despite some sell ratings.

American Resources Corporation (NASDAQ:AREC - Get Free Report) was the target of unusually large options trading on Monday. Investors purchased 2,600 call options on the stock. This is an increase of 35% compared to the typical volume of 1,919 call options.

Institutional Trading of American Resources

Large investors have recently made changes to their positions in the company. HITE Hedge Asset Management LLC bought a new stake in American Resources in the 4th quarter valued at about $5,750,000. Millennium Management LLC bought a new position in American Resources in the third quarter worth approximately $1,524,000. Goldman Sachs Group Inc. grew its stake in American Resources by 354.6% in the fourth quarter. Goldman Sachs Group Inc. now owns 560,986 shares of the company's stock valued at $1,391,000 after acquiring an additional 437,578 shares during the period. Bank of America Corp DE grew its stake in American Resources by 458.9% in the first quarter. Bank of America Corp DE now owns 410,230 shares of the company's stock valued at $993,000 after acquiring an additional 336,829 shares during the period. Finally, Two Sigma Investments LP bought a new stake in shares of American Resources during the third quarter valued at approximately $790,000. 9.32% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities research analysts have recently commented on the stock. Wall Street Zen raised shares of American Resources from a "strong sell" rating to a "sell" rating in a research note on Saturday, August 15th. Weiss Ratings restated a "sell (d+)" rating on shares of American Resources in a report on Tuesday, September 8th. Four research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $6.00.

American Resources Trading Down 2.8%

Shares of American Resources stock traded down $0.06 on Monday, reaching $2.08. 458,019 shares of the company's stock were exchanged, compared to its average volume of 3,207,132. The company has a market capitalization of $222.60 million, a P/E ratio of -5.08 and a beta of 1.19. American Resources has a 52 week low of $1.48 and a 52 week high of $7.11. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.19 and a current ratio of 2.19. The firm's 50-day moving average is $2.21 and its two-hundred day moving average is $2.35.

American Resources Dividend Announcement

The business also recently disclosed a dividend, which was paid on Tuesday, August 25th. Stockholders of record on Saturday, August 15th were given a dividend of $0.0431 per share. The ex-dividend date of this dividend was Friday, August 14th.

About American Resources

American Resources Corporation NASDAQ: AREC is a diversified energy and critical minerals company focused on reclaiming coal refuse and mining high‐quality steam and metallurgical coal. The firm employs a vertically integrated business model that encompasses raw material extraction, on‐site processing and product delivery, supplying coal to power generators, steel manufacturers and industrial users.

Operating primarily in the Central Appalachian region of the United States, American Resources holds mining leases and reclamation permits across multiple sites in Kentucky, West Virginia and Indiana.

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