Ramaco Resources (NASDAQ:METC) Reaches New 1-Year Low - Should You Sell?

Key Points

• Ramaco Resources shares hit a new 52-week low of $7.74, trading below both their 50-day and 200-day moving averages.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $22.43; targets range from $11 to $26 among recent firms.
• The company reported a quarterly loss of $0.26 per share and revenue below expectations, while major shareholder Discovery Capital Management sold 500,000 shares.

Shares of Ramaco Resources, Inc. (NASDAQ:METC - Get Free Report) hit a new 52-week low on Monday. The company traded as low as $7.74 and last traded at $7.9240, with a volume of 628,486 shares changing hands. The stock had previously closed at $7.83.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the stock. Weiss Ratings downgraded shares of Ramaco Resources from a "sell (d)" rating to a "sell (d-)" rating in a research note on Thursday, August 6th. Robert W. Baird reaffirmed a "neutral" rating and set a $13.00 price target on shares of Ramaco Resources in a research report on Tuesday, August 18th. Benchmark lowered their price target on Ramaco Resources from $38.00 to $26.00 and set a "buy" rating for the company in a report on Thursday, August 6th. B. Riley Financial reissued a "buy" rating on shares of Ramaco Resources in a research report on Tuesday, August 18th. Finally, The Goldman Sachs Group reduced their price objective on Ramaco Resources from $13.00 to $11.00 and set a "neutral" rating on the stock in a research note on Thursday, August 6th. Three equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $22.43.

Ramaco Resources Price Performance

The company has a debt-to-equity ratio of 1.23, a quick ratio of 3.31 and a current ratio of 4.23. The business's fifty day simple moving average is $10.58 and its 200 day simple moving average is $12.52. The stock has a market cap of $497.29 million, a price-to-earnings ratio of -7.33 and a beta of 1.64.

Ramaco Resources (NASDAQ:METC - Get Free Report) last announced its earnings results on Tuesday, August 4th. The energy company reported ($0.26) earnings per share for the quarter, meeting the consensus estimate of ($0.26). Ramaco Resources had a negative return on equity of 13.54% and a negative net margin of 11.98%. The company had revenue of $122.32 million during the quarter, compared to the consensus estimate of $133.11 million. Research analysts predict that Ramaco Resources, Inc. will post -0.97 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, major shareholder Discovery Capital Management, sold 500,000 shares of the stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $9.57, for a total transaction of $4,785,000.00. Following the completion of the transaction, the insider directly owned 4,811,360 shares in the company, valued at approximately $46,044,715.20. This represents a 9.41% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 46.07% of the stock is currently owned by company insiders.

Institutional Trading of Ramaco Resources

Several institutional investors have recently added to or reduced their stakes in METC. Assenagon Asset Management S.A. bought a new position in Ramaco Resources during the third quarter worth $3,986,000. Dimensional Fund Advisors LP boosted its holdings in Ramaco Resources by 38.5% in the first quarter. Dimensional Fund Advisors LP now owns 1,435,059 shares of the energy company's stock worth $22,179,000 after purchasing an additional 398,626 shares during the period. State Street Corp increased its stake in Ramaco Resources by 6.7% during the second quarter. State Street Corp now owns 3,059,847 shares of the energy company's stock valued at $40,482,000 after purchasing an additional 192,663 shares during the last quarter. Gratia Capital LLC bought a new stake in Ramaco Resources during the second quarter valued at $1,826,000. Finally, Bank of New York Mellon Corp bought a new stake in Ramaco Resources during the second quarter valued at $1,486,000. 74.49% of the stock is owned by institutional investors and hedge funds.

About Ramaco Resources

Ramaco Resources, Inc is a producer of metallurgical coal, which is used primarily in the manufacture of steel and metallurgical coke. The company develops and operates coal mining properties and sells its products to domestic and international steel, coke and industrial customers.

Ramaco's operations and development properties are located in major U.S. coal-producing regions, including southern West Virginia, southwestern Virginia and Wyoming. Its portfolio has included the Elk Creek and Berwind mining complexes in West Virginia, the RAM No.

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