Peabody Energy (NYSE:BTU) Shares Up 7.8% - Here's Why

Key Points

• Peabody Energy's stock surged by 7.8% to $25.71 in mid-day trading, significantly above its previous close of $23.85.
• Recent analyst ratings have seen Peabody's price target increased, with B. Riley raising it from $18 to $24 and giving a "buy" rating, while Wall Street Zen lowered its rating to "sell."
• The company announced a quarterly dividend of $0.075 per share, translating to an annualized yield of 1.2%, with a payout ratio of 29.13%.

Peabody Energy Corporation (NYSE:BTU - Get Free Report) shares shot up 7.8% during mid-day trading on Wednesday . The company traded as high as $25.71 and last traded at $25.71. 6,601,941 shares traded hands during mid-day trading, an increase of 39% from the average session volume of 4,762,128 shares. The stock had previously closed at $23.85.

Analyst Ratings Changes

BTU has been the topic of several recent analyst reports. B. Riley raised their price objective on Peabody Energy from $18.00 to $24.00 and gave the company a "buy" rating in a research note on Tuesday, September 9th. UBS Group raised their price objective on Peabody Energy from $16.00 to $17.00 and gave the company a "neutral" rating in a research note on Friday, September 19th. Finally, Wall Street Zen cut Peabody Energy from a "hold" rating to a "sell" rating in a research note on Saturday, August 2nd. Four research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $23.20.

Peabody Energy Stock Up 8.8%

The company has a market capitalization of $3.16 billion, a PE ratio of 25.11 and a beta of 0.64. The company has a quick ratio of 1.64, a current ratio of 2.21 and a debt-to-equity ratio of 0.09. The firm has a 50-day moving average of $17.69 and a two-hundred day moving average of $14.91.

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

Peabody Energy Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 3rd. Shareholders of record on Thursday, August 14th were paid a dividend of $0.075 per share. This represents a $0.30 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date was Thursday, August 14th. Peabody Energy's dividend payout ratio is 29.13%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in BTU. Smartleaf Asset Management LLC raised its stake in shares of Peabody Energy by 104.3% in the second quarter. Smartleaf Asset Management LLC now owns 2,006 shares of the coal producer's stock valued at $25,000 after acquiring an additional 1,024 shares in the last quarter. Allworth Financial LP raised its stake in shares of Peabody Energy by 315.0% in the first quarter. Allworth Financial LP now owns 2,125 shares of the coal producer's stock valued at $27,000 after acquiring an additional 1,613 shares in the last quarter. Nisa Investment Advisors LLC raised its stake in shares of Peabody Energy by 57.7% in the second quarter. Nisa Investment Advisors LLC now owns 2,229 shares of the coal producer's stock valued at $30,000 after acquiring an additional 816 shares in the last quarter. Signaturefd LLC raised its stake in shares of Peabody Energy by 48.5% in the second quarter. Signaturefd LLC now owns 2,353 shares of the coal producer's stock valued at $32,000 after acquiring an additional 768 shares in the last quarter. Finally, Elevation Point Wealth Partners LLC acquired a new stake in shares of Peabody Energy in the second quarter valued at $34,000. 87.44% of the stock is currently owned by institutional investors and hedge funds.

About Peabody Energy

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.

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