Alpha Metallurgical Resources (NYSE:AMR) Shares Gap Down - Should You Sell?

Key Points

• Alpha Metallurgical Resources shares fell 5.4%, opening at $177.34 versus the prior close of $184.73 and trading near $176.36.
• Analyst sentiment is negative: five analysts rate the stock Hold and two rate it Sell, resulting in a consensus “Reduce” rating and a $176 price target.
• The company narrowly beat quarterly EPS estimates but reported revenue of $421.3 million, down 10.4% year over year, and analysts expect a full-year loss of approximately $2.40 per share. Insiders bought 35,000 shares in the last quarter, indicating some internal confidence despite the weak outlook.

Shares of Alpha Metallurgical Resources, Inc. (NYSE:AMR - Get Free Report) gapped down prior to trading on Friday . The stock had previously closed at $184.73, but opened at $177.34. Alpha Metallurgical Resources shares last traded at $176.3590, with a volume of 73,145 shares trading hands.

Wall Street Analyst Weigh In

AMR has been the topic of a number of research reports. Weiss Ratings lowered shares of Alpha Metallurgical Resources from a "sell (d)" rating to a "sell (e+)" rating in a research note on Tuesday, August 11th. Jefferies Financial Group restated a "hold" rating and issued a $160.00 price target on shares of Alpha Metallurgical Resources in a research report on Tuesday, July 21st. Wall Street Zen cut Alpha Metallurgical Resources from a "hold" rating to a "sell" rating in a report on Saturday, August 8th. B. Riley Financial reduced their price objective on Alpha Metallurgical Resources from $189.00 to $185.00 and set a "neutral" rating on the stock in a research report on Thursday, August 20th. Finally, Zacks Research lowered Alpha Metallurgical Resources from a "hold" rating to a "strong sell" rating in a research note on Thursday, August 27th. Five equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus target price of $176.00.

Alpha Metallurgical Resources Trading Down 5.4%

The company has a quick ratio of 2.37, a current ratio of 3.41 and a debt-to-equity ratio of 0.01. The company's 50-day moving average is $177.63 and its 200-day moving average is $184.80. The stock has a market capitalization of $2.22 billion, a price-to-earnings ratio of -48.87 and a beta of 0.68.

Alpha Metallurgical Resources (NYSE:AMR - Get Free Report) last posted its earnings results on Friday, August 7th. The energy company reported ($0.96) earnings per share for the quarter, beating the consensus estimate of ($0.97) by $0.01. Alpha Metallurgical Resources had a negative net margin of 2.23% and a negative return on equity of 2.99%. The company had revenue of $421.29 million for the quarter, compared to analyst estimates of $521.61 million. During the same period in the previous year, the business posted ($0.38) EPS. Alpha Metallurgical Resources's revenue was down 10.4% on a year-over-year basis. Research analysts anticipate that Alpha Metallurgical Resources, Inc. will post -2.4 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Alpha Metallurgical Resources news, Director Kenneth Courtis bought 10,000 shares of Alpha Metallurgical Resources stock in a transaction on Tuesday, September 8th. The shares were bought at an average price of $225.83 per share, for a total transaction of $2,258,300.00. Following the completion of the transaction, the director directly owned 1,035,394 shares of the company's stock, valued at $233,823,027.02. This trade represents a 0.98% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this link. Insiders acquired a total of 35,000 shares of company stock valued at $7,388,400 in the last quarter. 18.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Alpha Metallurgical Resources

A number of hedge funds have recently modified their holdings of the business. Nykredit A S purchased a new stake in Alpha Metallurgical Resources in the 2nd quarter valued at about $25,000. Leonteq Securities AG purchased a new position in Alpha Metallurgical Resources during the first quarter worth about $37,000. Meeder Asset Management Inc. purchased a new position in Alpha Metallurgical Resources during the second quarter worth about $49,000. Hantz Financial Services Inc. boosted its stake in Alpha Metallurgical Resources by 67.9% during the fourth quarter. Hantz Financial Services Inc. now owns 403 shares of the energy company's stock worth $81,000 after buying an additional 163 shares during the period. Finally, Freestone Grove Partners LP acquired a new stake in shares of Alpha Metallurgical Resources during the second quarter valued at about $76,000. 84.29% of the stock is currently owned by hedge funds and other institutional investors.

Alpha Metallurgical Resources Company Profile

Alpha Metallurgical Resources, Inc is a mining company that produces and markets metallurgical coal, a key raw material used in steelmaking. Its products include premium and high-volatility metallurgical coal, as well as thermal coal, which is used primarily for electricity generation.

The company operates underground and surface mines and related processing facilities in Central Appalachia, principally in Virginia and West Virginia. Alpha sells its coal to domestic and international steel producers, coke manufacturers, and other industrial customers, serving markets in North America, Asia, Europe, and elsewhere.

Alpha Metallurgical Resources was formed from the restructuring of the former Alpha Natural Resources business and operated as Contura Energy before adopting its current name in 2021.

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