Alliance Resource Partners (NASDAQ:ARLP) Stock Crosses Above 200-Day Moving Average - Should You Sell?

Key Points

• Alliance Resource Partners shares crossed above their 200-day moving average, trading as high as $26.21 and last changing hands at $26.16, compared with the $25.78 average.
• Analyst sentiment is generally positive: three analysts rate the stock Buy and one rates it Hold, producing a “Moderate Buy” consensus and a $30 average price target.
• The company pays a quarterly dividend of $0.60, or $2.40 annualized, implying a 9.2% yield; however, its 117.07% payout ratio exceeds current earnings.

Shares of Alliance Resource Partners, L.P. (NASDAQ:ARLP - Get Free Report) crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $25.78 and traded as high as $26.21. Alliance Resource Partners shares last traded at $26.16, with a volume of 235,562 shares trading hands.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on ARLP shares. Zacks Research cut Alliance Resource Partners from a "strong-buy" rating to a "hold" rating in a report on Monday, August 17th. Wall Street Zen raised Alliance Resource Partners from a "hold" rating to a "buy" rating in a report on Saturday, August 15th. Finally, Weiss Ratings upgraded Alliance Resource Partners from a "hold (c)" rating to a "buy (b-)" rating in a research report on Tuesday, August 25th. Three investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $30.00.

Alliance Resource Partners Price Performance

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 has a market cap of $3.37 billion, a PE ratio of 12.76 and a beta of 0.21. The firm's fifty day simple moving average is $25.68 and its two-hundred day simple moving average is $25.78.

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

Alliance Resource Partners Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Friday, August 7th were paid a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 9.2%. The ex-dividend date was Friday, August 7th. Alliance Resource Partners's dividend payout ratio is presently 117.07%.

Insider Buying and Selling

In other Alliance Resource Partners news, Director Ronna McDaniel acquired 3,000 shares of the stock in a transaction dated Friday, July 31st. The shares were acquired at an average cost of $26.11 per share, for a total transaction of $78,330.00. Following the completion of the transaction, the director directly owned 3,000 shares of the company's stock, valued at approximately $78,330. The trade was a ∞ increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. 16.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Alliance Resource Partners

Large investors have recently made changes to their positions in the company. Tidal Investments LLC lifted its stake in 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 purchasing an additional 18,271 shares during the last quarter. MCF Advisors LLC grew its stake in shares of Alliance Resource Partners by 161.4% during the second quarter. MCF Advisors LLC now owns 2,614 shares of the energy company's stock valued at $63,000 after buying an additional 1,614 shares during the last quarter. Integrated Wealth Concepts LLC bought a new position in shares of Alliance Resource Partners during the second quarter valued at approximately $28,000. Allworth Financial LP bought a new position in shares of Alliance Resource Partners during the second quarter valued at approximately $48,000. Finally, Continuum Advisory LLC purchased a new stake in shares of Alliance Resource Partners in the second quarter worth approximately $58,000. 18.11% of the stock is owned by hedge funds and other institutional investors.

Alliance Resource Partners Company Profile

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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