Alliance Resource Partners (NASDAQ:ARLP) Shares Gap Up - Here's Why

Key Points

• Alliance Resource Partners shares gapped higher, opening at $26.24 versus the prior close of $25.55, before trading near $25.47.
• Analyst sentiment is generally positive: two analysts rate the stock Buy and one rates it Hold, resulting in a consensus “Moderate Buy” rating.
• The company recently paid a quarterly dividend of $0.60 per share, equivalent to an annualized $2.40 and a 9.5% yield, although its payout ratio is elevated at 117.07%.

Alliance Resource Partners, L.P. (NASDAQ:ARLP - Get Free Report)'s share price gapped up before the market opened on Thursday . The stock had previously closed at $25.55, but opened at $26.24. Alliance Resource Partners shares last traded at $25.47, with a volume of 16,503 shares changing hands.

Analyst Upgrades and Downgrades

ARLP has been the subject of several research reports. Weiss Ratings raised Alliance Resource Partners from a "hold (c)" rating to a "buy (b-)" rating in a research report on Tuesday, August 25th. Wall Street Zen raised Alliance Resource Partners from a "hold" rating to a "buy" rating in a research note on Saturday, August 15th. Finally, Zacks Research lowered Alliance Resource Partners from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 17th. Two research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy".

Alliance Resource Partners Price Performance

The firm has a market capitalization of $3.26 billion, a PE ratio of 12.36 and a beta of 0.21. The company has a quick ratio of 1.32, a current ratio of 1.75 and a debt-to-equity ratio of 0.28. The firm's fifty day simple moving average is $25.77 and its 200-day simple moving average is $25.74.

Alliance Resource Partners (NASDAQ:ARLP - Get Free Report) last issued its earnings results on Monday, July 27th. The energy company reported $0.65 EPS for the quarter, missing the consensus estimate of $0.66 by ($0.01). Alliance Resource Partners had a net margin of 12.25% and a return on equity of 17.70%. The business had revenue of $551.56 million for the quarter, compared to analysts' expectations of $554.30 million. On average, research analysts forecast that Alliance Resource Partners, L.P. will post 2.65 earnings per share for the current fiscal year.

Alliance Resource Partners Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, August 7th were issued a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a dividend yield of 9.5%. The ex-dividend date of this dividend was Friday, August 7th. Alliance Resource Partners's dividend payout ratio (DPR) is presently 117.07%.

Insiders Place Their Bets

In related news, Director Ronna McDaniel bought 3,000 shares of the company's stock in a transaction that occurred on Friday, July 31st. The shares were bought at an average price of $26.11 per share, for a total transaction of $78,330.00. Following the completion of the acquisition, the director owned 3,000 shares of the company's stock, valued at $78,330. This trade represents a ∞ increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 16.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Alliance Resource Partners

Hedge funds and other institutional investors have recently modified their holdings of the company. Tidal Investments LLC grew its holdings in shares of Alliance Resource Partners by 47.3% in the second quarter. Tidal Investments LLC now owns 56,864 shares of the energy company's stock worth $1,364,000 after acquiring an additional 18,271 shares during the period. MCF Advisors LLC boosted its position in Alliance Resource Partners by 161.4% in the second quarter. MCF Advisors LLC now owns 2,614 shares of the energy company's stock worth $63,000 after purchasing an additional 1,614 shares during the last quarter. Integrated Wealth Concepts LLC bought a new stake in shares of Alliance Resource Partners during the 2nd quarter valued at about $28,000. Allworth Financial LP bought a new stake in shares of Alliance Resource Partners during the 2nd quarter valued at about $48,000. Finally, Continuum Advisory LLC purchased a new stake in shares of Alliance Resource Partners during the 2nd quarter valued at about $58,000. 18.11% of the stock is owned by institutional investors.

About Alliance Resource Partners

Alliance Resource Partners, L.P. NASDAQ: ARLP is a diversified natural resource company organized as a master limited partnership. The company primarily produces and markets coal through its subsidiary, Alliance Coal, LLC, supplying fuel to electric utilities and industrial customers in the United States.

Alliance operates mining complexes in the Illinois Basin and Appalachia, including properties in Illinois, Kentucky, and West Virginia. Its coal products are used mainly for electricity generation, and the company markets its production through long-term and spot sales agreements with domestic utility customers.

In addition to its coal operations, Alliance owns mineral and royalty interests tied to oil and natural gas production, as well as other mineral assets.

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