Peabody Energy (NYSE:BTU) Stock Price Down 6.8% on Disappointing Earnings

Key Points

• Shares fell 6.8% to about $24.71 after Peabody reported Q earnings of ($0.26) per share versus a $0.07 consensus (a $0.33 miss), as revenue rose 3.9% year‑over‑year and trading volume was about 12% above average.
• The company remains unprofitable with a negative ROE and net margin and a negative P/E, but it pays a small quarterly dividend of $0.075 (annualized $0.30) for a ~1.2% yield.
• Wall Street sentiment is mixed—consensus rating is a Hold with a $35.63 average target—while insiders have sold shares and institutional investors own roughly 87% of the stock.

Peabody Energy Corporation (NYSE:BTU - Get Free Report) shares were down 6.8% during mid-day trading on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $24.65 and last traded at $24.7060. Approximately 3,746,981 shares changed hands during mid-day trading, an increase of 12% from the average daily volume of 3,336,683 shares. The stock had previously closed at $26.52.

The coal producer reported ($0.26) earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.33). Peabody Energy had a negative return on equity of 0.93% and a negative net margin of 1.37%.During the same period last year, the firm posted $0.27 EPS. The company's revenue was up 3.9% on a year-over-year basis.

Peabody Energy Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Monday, February 23rd were given a dividend of $0.075 per share. The ex-dividend date was Monday, February 23rd. This represents a $0.30 dividend on an annualized basis and a yield of 1.2%. Peabody Energy's dividend payout ratio is -66.67%.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. UBS Group increased their price target on Peabody Energy from $34.50 to $36.50 and gave the company a "neutral" rating in a research note on Friday, March 27th. B. Riley Financial downgraded Peabody Energy from a "buy" rating to a "neutral" rating and dropped their price objective for the stock from $42.00 to $30.00 in a research note on Thursday, April 30th. Weiss Ratings downgraded Peabody Energy from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, February 20th. Zacks Research upgraded Peabody Energy from a "strong sell" rating to a "hold" rating in a report on Monday, April 6th. Finally, Jefferies Financial Group raised their price objective on Peabody Energy from $42.00 to $44.00 and gave the company a "buy" rating in a report on Tuesday, January 20th. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Peabody Energy has a consensus rating of "Hold" and a consensus price target of $35.63.

Insider Activity

In related news, COO Darren Ronald Yeates sold 13,892 shares of the stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $36.40, for a total value of $505,668.80. Following the completion of the sale, the chief operating officer directly owned 113,440 shares in the company, valued at $4,129,216. This represents a 10.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 0.51% of the company's stock.

Institutional Trading of Peabody Energy

Large investors have recently bought and sold shares of the business. Valued Wealth Advisors LLC bought a new position in shares of Peabody Energy during the 1st quarter worth about $25,000. Smartleaf Asset Management LLC lifted its position in Peabody Energy by 104.3% in the 2nd 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. CoreCap Advisors LLC lifted its position in Peabody Energy by 763.4% in the 3rd quarter. CoreCap Advisors LLC now owns 1,131 shares of the coal producer's stock valued at $30,000 after acquiring an additional 1,000 shares in the last quarter. Caitong International Asset Management Co. Ltd bought a new position in Peabody Energy in the 4th quarter valued at about $37,000. Finally, Hantz Financial Services Inc. lifted its position in Peabody Energy by 258.7% in the 3rd quarter. Hantz Financial Services Inc. now owns 1,607 shares of the coal producer's stock valued at $43,000 after acquiring an additional 1,159 shares in the last quarter. 87.44% of the stock is currently owned by institutional investors and hedge funds.

Peabody Energy Stock Performance

The firm has a market cap of $3.00 billion, a P/E ratio of -54.97 and a beta of 0.35. The company has a current ratio of 1.85, a quick ratio of 1.40 and a debt-to-equity ratio of 0.09. The company's 50-day moving average is $32.13 and its two-hundred day moving average is $31.58.

Peabody Energy Company Profile

Peabody Energy Corporation is one of the world's largest private-sector coal companies, engaged primarily in the production and sale of metallurgical and thermal coal. The company's operations span surface and underground mines, serving utilities, steel mills and other industrial customers that rely on coal as an essential component in power generation and steelmaking. Peabody's product portfolio includes high-energy thermal coal for electricity generation and low-volatile metallurgical coal used in steel production, reflecting its diverse end-market reach.

Founded in 1883, Peabody Energy has grown from a regional mining concern into a global energy supplier.

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