Alpha Metallurgical Resources (NYSE:AMR) Trading Down 5.3% - Here's Why

Key Points

• Alpha Metallurgical Resources shares fell 5.3% to about $220.86, with trading volume down 87% from the average session.
• Analyst sentiment remains cautious: five analysts rate AMR a Hold and two rate it Sell, resulting in a consensus “Reduce” rating and an average price target of $176.
• The company narrowly beat quarterly EPS expectations but reported revenue of $421.3 million, well below the $521.6 million consensus estimate; revenue also declined 10.4% year over year.

Shares of Alpha Metallurgical Resources, Inc. (NYSE:AMR - Get Free Report) dropped 5.3% during mid-day trading on Thursday . The stock traded as low as $220.04 and last traded at $220.8630. 36,716 shares were traded during mid-day trading, a decline of 87% from the average session volume of 286,419 shares. The stock had previously closed at $233.29.

Wall Street Analysts Forecast Growth

AMR has been the subject of a number of recent analyst reports. Weiss Ratings downgraded Alpha Metallurgical Resources from a "sell (d)" rating to a "sell (e+)" rating in a report on Tuesday, August 11th. Jefferies Financial Group reissued a "hold" rating and issued a $160.00 price objective on shares of Alpha Metallurgical Resources in a research note on Tuesday, July 21st. Zacks Research lowered Alpha Metallurgical Resources from a "hold" rating to a "strong sell" rating in a research report on Thursday, August 27th. B. Riley Financial decreased their target price on Alpha Metallurgical Resources from $189.00 to $185.00 and set a "neutral" rating for the company in a research note on Thursday, August 20th. Finally, Wall Street Zen lowered Alpha Metallurgical Resources from a "hold" rating to a "sell" rating in a research note on Saturday, August 8th. Five 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 stock currently has a consensus rating of "Reduce" and a consensus target price of $176.00.

Alpha Metallurgical Resources Trading Down 6.4%

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 stock has a market capitalization of $2.77 billion, a P/E ratio of -61.04 and a beta of 0.68. The firm's 50 day simple moving average is $166.60 and its two-hundred day simple moving average is $182.28.

Alpha Metallurgical Resources (NYSE:AMR - Get Free Report) last released its quarterly earnings data on Friday, August 7th. The energy company reported ($0.96) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.97) by $0.01. The company had revenue of $421.29 million for the quarter, compared to analysts' expectations of $521.61 million. Alpha Metallurgical Resources had a negative net margin of 2.23% and a negative return on equity of 2.99%. The business's revenue was down 10.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.38) EPS. As a group, analysts forecast that Alpha Metallurgical Resources, Inc. will post -2.4 earnings per share for the current fiscal year.

Insider Transactions at Alpha Metallurgical Resources

In other news, Director Kenneth S. Courtis acquired 15,000 shares of Alpha Metallurgical Resources stock in a transaction on Thursday, August 20th. The stock was purchased at an average price of $193.50 per share, with a total value of $2,902,500.00. Following the completion of the purchase, the director owned 1,015,394 shares of the company's stock, valued at approximately $196,478,739. The trade was a 1.50% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders purchased a total of 35,000 shares of company stock valued at $7,137,400 in the last 90 days. 18.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Alpha Metallurgical Resources

A number of large investors have recently modified their holdings of AMR. Nykredit A S acquired a new position in Alpha Metallurgical Resources during the second quarter worth $25,000. Los Angeles Capital Management LLC acquired a new stake in shares of Alpha Metallurgical Resources in the 4th quarter worth about $29,000. Caitong International Asset Management Co. Ltd lifted its position in Alpha Metallurgical Resources by 215.4% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 164 shares of the energy company's stock valued at $33,000 after acquiring an additional 112 shares in the last quarter. Leonteq Securities AG bought a new position in Alpha Metallurgical Resources in the 1st quarter valued at about $37,000. Finally, Aster Capital Management DIFC Ltd acquired a new position in Alpha Metallurgical Resources during the 4th quarter valued at about $45,000. 84.29% of the stock is currently owned by institutional investors.

About Alpha Metallurgical Resources

Alpha Metallurgical Resources, Inc NYSE: AMR is a leading pure-play producer of high-grade metallurgical coal, primarily serving the global steelmaking industry. Headquartered in Bristol, Virginia, the company operates multiple underground and surface mining complexes across the central Appalachian and Illinois basins. Its production portfolio focuses on premium raw and semi-soft coking coal products tailored to meet the specifications of steel producers worldwide.

Formed in July 2021 through the spin-out of Contura Energy's metallurgical coal business, Alpha Metallurgical Resources has built a reputation for operational excellence and cost-efficient mining.

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