Ramaco Resources (NASDAQ:METC) Stock Price Down 12.8% - Time to Sell?

Key Points

• Ramaco Resources shares fell 12.8% to about $12.57, with trading volume well below its average. The company reported a quarterly loss of $0.26 per share, in line with estimates, but revenue of $122.3 million came in below the $133.1 million consensus.
• Analyst sentiment is mixed but leans cautious: the consensus rating is “Hold”, with an average price target of $22.43. Goldman Sachs and Morgan Stanley both cut their targets to $11, while B. Riley maintained a Buy rating and Zacks downgraded the stock to Strong Sell.
• Institutional investors own 74.49% of the stock, while insiders own 46.07%; major shareholder Discovery Capital Management recently sold 500,000 shares, reducing its position by 9.41%.

Ramaco Resources, Inc. (NASDAQ:METC - Get Free Report)'s stock price fell 12.8% on Thursday . The stock traded as low as $12.76 and last traded at $12.5650. 407,568 shares traded hands during mid-day trading, a decline of 80% from the average daily volume of 2,058,698 shares. The stock had previously closed at $14.41.

Wall Street Analysts Forecast Growth

METC has been the subject of several recent analyst reports. Weiss Ratings cut Ramaco Resources from a "sell (d)" rating to a "sell (d-)" rating in a research note on Thursday, August 6th. The Goldman Sachs Group dropped their price target on shares of Ramaco Resources from $13.00 to $11.00 and set a "neutral" rating on the stock in a research report on Thursday, August 6th. Morgan Stanley cut their price target on shares of Ramaco Resources from $13.00 to $11.00 and set an "equal weight" rating for the company in a report on Tuesday, August 18th. Zacks Research lowered shares of Ramaco Resources from a "hold" rating to a "strong sell" rating in a research report on Friday, July 17th. Finally, B. Riley Financial reaffirmed a "buy" rating on shares of Ramaco Resources in a research note on Tuesday, August 18th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, Ramaco Resources currently has a consensus rating of "Hold" and an average price target of $22.43.

Ramaco Resources Price Performance

The stock has a fifty day moving average price of $11.76 and a 200-day moving average price of $13.79. The company has a market cap of $772.15 million, a PE ratio of -11.35 and a beta of 1.39. The company has a debt-to-equity ratio of 1.23, a current ratio of 4.23 and a quick ratio of 3.31.

Ramaco Resources (NASDAQ:METC - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The energy company reported ($0.26) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.26). The business had revenue of $122.32 million for the quarter, compared to the consensus estimate of $133.11 million. Ramaco Resources had a negative return on equity of 13.54% and a negative net margin of 11.98%. On average, equities analysts expect that Ramaco Resources, Inc. will post -1.02 earnings per share for the current year.

Insiders Place Their Bets

In other news, major shareholder Discovery Capital Management, sold 500,000 shares of the company's stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $9.57, for a total value of $4,785,000.00. Following the transaction, the insider owned 4,811,360 shares in the company, valued at $46,044,715.20. This represents a 9.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 46.07% of the stock is currently owned by company insiders.

Institutional Trading of Ramaco Resources

Several institutional investors have recently made changes to their positions in METC. State Street Corp increased its stake in Ramaco Resources by 10.2% in the 4th quarter. State Street Corp now owns 2,489,797 shares of the energy company's stock valued at $44,816,000 after buying an additional 230,197 shares during the period. Renaissance Technologies LLC grew its holdings in shares of Ramaco Resources by 0.7% during the 4th quarter. Renaissance Technologies LLC now owns 1,526,164 shares of the energy company's stock valued at $27,471,000 after acquiring an additional 9,860 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Ramaco Resources by 38.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,435,059 shares of the energy company's stock valued at $22,179,000 after acquiring an additional 398,626 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in shares of Ramaco Resources by 74.6% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,160,898 shares of the energy company's stock worth $20,896,000 after acquiring an additional 496,150 shares during the last quarter. Finally, Geode Capital Management LLC grew its stake in Ramaco Resources by 20.1% in the fourth quarter. Geode Capital Management LLC now owns 978,950 shares of the energy company's stock valued at $17,625,000 after purchasing an additional 163,971 shares in the last quarter. 74.49% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source