Alpha Metallurgical Resources (NYSE:AMR) Trading Down 6.5% - Time to Sell?

Key Points

• Alpha Metallurgical Resources shares fell 6.5% to about $168.73 on significantly below-average trading volume, bringing the stock below its 50-day and 200-day moving averages.
• Analyst sentiment is cautious: the stock carries an average “Reduce” rating and a $176 price target, with recent downgrades from Zacks Research, Weiss Ratings, and Wall Street Zen.
• The company narrowly beat quarterly EPS estimates but reported revenue well below expectations and down 10.4% year over year; insiders have nonetheless purchased $7.4 million of shares in the past 90 days.

Alpha Metallurgical Resources, Inc. (NYSE:AMR - Get Free Report) dropped 6.5% during mid-day trading on Thursday . The company traded as low as $168.51 and last traded at $168.73. 97,357 shares traded hands during mid-day trading, a decline of 66% from the average daily volume of 289,468 shares. The stock had previously closed at $180.40.

Analysts Set New Price Targets

Several brokerages recently issued reports on AMR. Zacks Research cut Alpha Metallurgical Resources from a "hold" rating to a "strong sell" rating in a research note on Thursday, August 27th. Weiss Ratings cut Alpha Metallurgical Resources from a "sell (d)" rating to a "sell (e+)" rating in a report on Tuesday, August 11th. Wall Street Zen downgraded Alpha Metallurgical Resources from a "hold" rating to a "sell" rating in a research report on Saturday, August 8th. UBS Group assumed coverage on Alpha Metallurgical Resources in a research note on Friday, July 10th. They set a "neutral" rating and a $165.00 price target on the stock. Finally, Jefferies Financial Group restated a "hold" rating and issued a $160.00 price objective on shares of Alpha Metallurgical Resources in a report on Tuesday, July 21st. Five analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Alpha Metallurgical Resources currently has an average rating of "Reduce" and an average price target of $176.00.

Alpha Metallurgical Resources Trading Down 7.4%

The firm has a market capitalization of $2.12 billion, a PE ratio of -46.78 and a beta of 0.68. 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 simple moving average is $180.00 and its 200 day simple moving average is $185.01.

Alpha Metallurgical Resources (NYSE:AMR - Get Free Report) last issued 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 firm had revenue of $421.29 million for the quarter, compared to the consensus estimate 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 company's quarterly revenue was down 10.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.38) EPS. As a group, sell-side analysts expect that Alpha Metallurgical Resources, Inc. will post -2.4 EPS for the current year.

Insider Activity

In other Alpha Metallurgical Resources news, Director Kenneth Courtis acquired 15,000 shares of the firm's stock in a transaction dated Thursday, August 20th. The stock was purchased at an average price of $193.50 per share, for a total transaction of $2,902,500.00. Following the acquisition, the director owned 1,015,394 shares in the company, valued at approximately $196,478,739. This trade represents 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 hyperlink. Insiders acquired 35,000 shares of company stock worth $7,388,400 over the last 90 days. Corporate insiders own 18.20% of the company's stock.

Institutional Investors Weigh In On Alpha Metallurgical Resources

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Tidal Investments LLC lifted its stake in Alpha Metallurgical Resources by 10.2% during the 2nd quarter. Tidal Investments LLC now owns 1,884 shares of the energy company's stock valued at $311,000 after acquiring an additional 174 shares during the period. WINTON GROUP Ltd increased its stake in shares of Alpha Metallurgical Resources by 97.4% in the second quarter. WINTON GROUP Ltd now owns 1,940 shares of the energy company's stock worth $320,000 after acquiring an additional 957 shares during the period. Squarepoint Ops LLC purchased a new position in shares of Alpha Metallurgical Resources during the second quarter worth $3,728,000. Nykredit A S purchased a new position in shares of Alpha Metallurgical Resources during the second quarter worth $25,000. Finally, NWF Advisory Services Inc. lifted its position in Alpha Metallurgical Resources by 46.5% during the second quarter. NWF Advisory Services Inc. now owns 57,925 shares of the energy company's stock valued at $9,554,000 after purchasing an additional 18,390 shares during the period. 84.29% of the stock is currently owned by hedge funds and other institutional investors.

About Alpha Metallurgical Resources

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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