Ramaco Resources (NASDAQ:METC) Shares Down 5.9% - Time to Sell?

Key Points

• Ramaco Resources shares fell 5.9% to $12.16 in mid-day trading, with volume down 70% from its average session level.
• Analyst sentiment has weakened, including multiple downgrades to “strong sell,” while the overall consensus remains “Hold.” The average price target is $22.43, substantially above the current share price.
• The company reported a quarterly loss of $0.26 per share and revenue of $122.32 million, below expectations, while a major shareholder sold 500,000 shares and reduced its stake by 9.41%.

Ramaco Resources, Inc. (NASDAQ:METC - Get Free Report) dropped 5.9% during mid-day trading on Wednesday . The stock traded as low as $12.05 and last traded at $12.16. 605,838 shares traded hands during trading, a decline of 70% from the average session volume of 2,042,425 shares. The stock had previously closed at $12.92.

Analyst Ratings Changes

METC has been the topic of a number of analyst reports. The Goldman Sachs Group reduced their target price on shares of Ramaco Resources from $13.00 to $11.00 and set a "neutral" rating on the stock in a research note on Thursday, August 6th. Robert W. Baird reaffirmed a "neutral" rating and set a $13.00 price objective on shares of Ramaco Resources in a research report on Tuesday, August 18th. Wall Street Zen downgraded Ramaco Resources from a "sell" rating to a "strong sell" rating in a report on Saturday. Zacks Research downgraded shares of Ramaco Resources from a "hold" rating to a "strong sell" rating in a research report on Friday, July 17th. Finally, Weiss Ratings downgraded Ramaco Resources from a "sell (d)" rating to a "sell (d-)" rating in a research note on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $22.43.

Ramaco Resources Stock Performance

The company has a quick ratio of 3.31, a current ratio of 4.23 and a debt-to-equity ratio of 1.23. The stock has a fifty day moving average price of $11.74 and a two-hundred day moving average price of $13.93. The company has a market capitalization of $764.36 million, a price-to-earnings ratio of -11.27 and a beta of 1.37.

Ramaco Resources (NASDAQ:METC - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The energy company reported ($0.26) EPS for the quarter, hitting analysts' consensus estimates of ($0.26). The firm had revenue of $122.32 million during the quarter, compared to analysts' expectations of $133.11 million. Ramaco Resources had a negative return on equity of 13.54% and a negative net margin of 11.98%. As a group, analysts forecast that Ramaco Resources, Inc. will post -1.02 EPS for the current fiscal year.

Insider Buying and Selling

In related news, major shareholder Discovery Capital Management, sold 500,000 shares of the stock in a transaction dated 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 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 46.07% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of METC. Quarry LP acquired a new position in Ramaco Resources during the fourth quarter worth approximately $27,000. Caitong International Asset Management Co. Ltd increased its holdings in shares of Ramaco Resources by 14,250.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,722 shares of the energy company's stock worth $31,000 after buying an additional 1,710 shares during the last quarter. Allworth Financial LP increased its holdings in shares of Ramaco Resources by 3,603.6% during the 3rd quarter. Allworth Financial LP now owns 1,037 shares of the energy company's stock worth $34,000 after buying an additional 1,009 shares during the last quarter. Advisory Services Network LLC purchased a new position in shares of Ramaco Resources in the 3rd quarter worth $38,000. Finally, MidFirst Bank acquired a new position in Ramaco Resources in the fourth quarter valued at $54,000. Institutional investors and hedge funds own 74.49% of the company's stock.

About Ramaco Resources

Ramaco Resources, Inc NASDAQ: METC is a U.S.-based producer of premium metallurgical coal and industrial minerals, focused on supplying the steel and allied industries. The company’s operations are centered in the Appalachian region of West Virginia, where it develops, mines and processes high-carbon coal products designed to meet the quality requirements of blast‐furnace and electric‐arc furnace steelmakers.

The firm’s flagship asset is the Elk Creek underground mine in Wyoming County, West Virginia, which began commercial production in 2019 and delivers a range of high‐grade metallurgical and anthracite coals.

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