Ramaco Resources (NASDAQ:METC) Stock Price Up 5.7% - Should You Buy?

Key Points

• Ramaco Resources shares rose 5.7% to about $8.85, although trading volume was 95% below the average daily level.
• Analyst sentiment is mixed: the stock has an average “Hold” rating and a $22.43 average price target, with some firms maintaining buy ratings while others lowered targets or issued sell ratings.
• The company matched quarterly EPS expectations at a loss of $0.26 but missed revenue estimates, reporting $122.32 million; separately, major shareholder Discovery Capital Management sold 500,000 shares.

Ramaco Resources, Inc. (NASDAQ:METC - Get Free Report)'s share price traded up 5.7% during mid-day trading on Wednesday. The stock traded as high as $8.60 and last traded at $8.8540. 105,218 shares changed hands during trading, a decline of 95% from the average daily volume of 2,061,037 shares. The stock had previously closed at $8.38.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Benchmark lowered their target price on shares of Ramaco Resources from $38.00 to $26.00 and set a "buy" rating for the company in a research note on Thursday, August 6th. B. Riley Financial reissued a "buy" rating on shares of Ramaco Resources in a research note on Tuesday, August 18th. The Goldman Sachs Group dropped their price objective on shares of Ramaco Resources from $13.00 to $11.00 and set a "neutral" rating for the company in a report on Thursday, August 6th. Wall Street Zen upgraded shares of Ramaco Resources from a "strong sell" rating to a "sell" rating in a report on Saturday. Finally, Zacks Research downgraded shares of Ramaco Resources from a "hold" rating to a "strong sell" rating in a research note on Friday, July 17th. One 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 issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $22.43.

Ramaco Resources Stock Performance

The stock's 50-day simple moving average is $11.01 and its 200 day simple moving average is $13.07. The company has a market capitalization of $540.26 million, a PE ratio of -7.98 and a beta of 1.39. The company has a debt-to-equity ratio of 1.23, a quick ratio of 3.31 and a current ratio of 4.23.

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

Insider Activity at Ramaco Resources

In other news, major shareholder Discovery Capital Management, sold 500,000 shares of the firm's 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 sale, the insider owned 4,811,360 shares of the company's stock, valued at approximately $46,044,715.20. This trade represents a 9.41% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 46.07% of the company's stock.

Hedge Funds Weigh In On Ramaco Resources

Several hedge funds have recently added to or reduced their stakes in METC. Dimensional Fund Advisors LP increased its holdings in shares of 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 valued at $22,179,000 after purchasing an additional 398,626 shares during the period. State Street Corp lifted its holdings in shares of Ramaco Resources by 6.7% during the second quarter. State Street Corp now owns 3,059,847 shares of the energy company's stock worth $40,482,000 after purchasing an additional 192,663 shares during the period. Gratia Capital LLC purchased a new position in Ramaco Resources in the 2nd quarter valued at $1,826,000. Bank of New York Mellon Corp purchased a new position in Ramaco Resources in the 2nd quarter valued at $1,486,000. Finally, Quantbot Technologies LP grew its position in Ramaco Resources by 54.1% in the 2nd quarter. Quantbot Technologies LP now owns 127,404 shares of the energy company's stock valued at $1,686,000 after buying an additional 44,710 shares during the last quarter. 74.49% of the stock is currently owned by hedge funds and other institutional investors.

About Ramaco Resources

Ramaco Resources, Inc is a metallurgical coal producer headquartered in Lexington, Kentucky. The company develops, operates and sells metallurgical coal used primarily in the production of steel. Its products include various grades of high-quality metallurgical coal, including high-volatility and low-volatility products, as well as coal suitable for pulverized coal injection applications.

Ramaco operates mining complexes in Central Appalachia, including properties in West Virginia and Virginia.

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