Peabody Energy (NYSE:BTU) Trading 6.3% Higher - Still a Buy?

Key Points

• Peabody Energy shares rose 6.3% to $26.64 in mid-day trading, though volume was 80% below the average session level.
• Analyst sentiment remains mixed: the stock has two Buy, two Hold and two Sell ratings, resulting in an overall “Hold” consensus and an average price target of $33.88.
• The company missed quarterly earnings expectations, reporting an adjusted loss of $0.74 per share versus the expected $0.38 loss, while revenue reached $1 billion and increased 12.7% year over year. Peabody also maintains a $0.075 quarterly dividend, yielding approximately 1.1% annually.

Shares of Peabody Energy Corporation (NYSE:BTU - Get Free Report) shot up 6.3% during mid-day trading on Tuesday . The company traded as high as $26.50 and last traded at $26.64. 628,262 shares changed hands during mid-day trading, a decline of 80% from the average session volume of 3,122,552 shares. The stock had previously closed at $25.07.

Wall Street Analysts Forecast Growth

Several analysts have commented on BTU shares. Zacks Research lowered shares of Peabody Energy from a "hold" rating to a "strong sell" rating in a report on Friday, July 31st. Benchmark reduced their target price on Peabody Energy from $40.00 to $36.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. B. Riley Financial decreased their target price on Peabody Energy from $30.00 to $29.00 and set a "neutral" rating for the company in a research report on Thursday, July 30th. Weiss Ratings restated a "sell (d)" rating on shares of Peabody Energy in a research note on Friday. Finally, UBS Group dropped their price target on Peabody Energy from $27.00 to $26.50 and set a "neutral" rating on the stock in a research report on Tuesday, August 4th. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $33.88.

Peabody Energy Trading Up 7.3%

The company has a market cap of $3.28 billion, a P/E ratio of -17.87 and a beta of 0.34. The stock's 50 day moving average is $25.58 and its 200-day moving average is $27.28. The company has a current ratio of 2.01, a quick ratio of 1.46 and a debt-to-equity ratio of 0.10.

Peabody Energy (NYSE:BTU - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The coal producer reported ($0.74) EPS for the quarter, missing the consensus estimate of ($0.38) by ($0.36). The firm had revenue of $1 billion for the quarter, compared to analysts' expectations of $1.02 billion. Peabody Energy had a negative net margin of 4.56% and a negative return on equity of 5.22%. The business's revenue for the quarter was up 12.7% compared to the same quarter last year. During the same period last year, the company posted ($0.23) earnings per share. Research analysts anticipate that Peabody Energy Corporation will post 0.33 earnings per share for the current fiscal year.

Peabody Energy Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Wednesday, August 12th were issued a dividend of $0.075 per share. The ex-dividend date was Wednesday, August 12th. This represents a $0.30 dividend on an annualized basis and a dividend yield of 1.1%. Peabody Energy's dividend payout ratio is presently -20.00%.

Hedge Funds Weigh In On Peabody Energy

A number of hedge funds have recently added to or reduced their stakes in BTU. Dimensional Fund Advisors LP increased its holdings in shares of Peabody Energy by 0.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 6,233,585 shares of the coal producer's stock worth $205,429,000 after purchasing an additional 54,072 shares in the last quarter. Van ECK Associates Corp boosted its position in shares of Peabody Energy by 387.1% during the second quarter. Van ECK Associates Corp now owns 1,556,305 shares of the coal producer's stock valued at $35,982,000 after buying an additional 1,236,770 shares during the last quarter. Assenagon Asset Management S.A. boosted its position in shares of Peabody Energy by 331.2% during the first quarter. Assenagon Asset Management S.A. now owns 1,211,411 shares of the coal producer's stock valued at $39,916,000 after buying an additional 930,451 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in Peabody Energy in the 2nd quarter worth about $22,393,000. Finally, Bridgeway Capital Management LLC increased its holdings in Peabody Energy by 5.6% in the 4th quarter. Bridgeway Capital Management LLC now owns 847,020 shares of the coal producer's stock worth $25,156,000 after buying an additional 45,218 shares in the last quarter. 87.44% of the stock is currently owned by hedge funds and other institutional investors.

Peabody Energy Company Profile

Peabody Energy Corporation NYSE: BTU is a global coal producer and energy company. It primarily mines and sells thermal coal, which is used for electricity generation, and metallurgical coal, which is used in steelmaking. The company also markets and trades coal and provides related services, including coal transportation and land management.

Peabody operates mining assets in the United States and Australia and serves utility, industrial and steelmaking customers in domestic and international markets.

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