Warrior Met Coal (NYSE:HCC) Shares Down 4.6% - Time to Sell?

Key Points

• Warrior Met Coal shares fell 4.6% to $87.49 in low-volume trading, below the 50-day and 200-day moving averages.
• Despite the decline, analysts maintain a generally positive outlook: the stock has a “Moderate Buy” consensus rating and an average price target of $103.83.
• The company reported strong quarterly results, with EPS of $1.65 and revenue up 71.3% year over year, while institutional investors own 92.28% of the shares. However, insiders sold 104,800 shares worth $11.25 million over the past three months.

Warrior Met Coal (NYSE:HCC - Get Free Report) fell 4.6% during trading on Tuesday. The company traded as low as $88.16 and last traded at $87.49. 135,206 shares were traded during trading, a decline of 84% from the average session volume of 823,527 shares. The stock had previously closed at $91.75.

Analyst Ratings Changes

Several equities analysts have recently issued reports on HCC shares. UBS Group lowered their price target on Warrior Met Coal from $100.00 to $98.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. Weiss Ratings raised Warrior Met Coal from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, August 11th. B. Riley Financial lifted their target price on Warrior Met Coal from $117.00 to $123.00 and gave the stock a "buy" rating in a report on Wednesday, June 10th. Royal Bank Of Canada boosted their price objective on Warrior Met Coal from $90.00 to $110.00 and gave the stock a "sector perform" rating in a report on Wednesday, September 16th. Finally, Citigroup reaffirmed a "buy" rating on shares of Warrior Met Coal in a research note on Wednesday, June 10th. Four investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $103.83.

Warrior Met Coal Trading Down 4.7%

The company has a market cap of $4.62 billion, a PE ratio of 21.04 and a beta of 0.67. The company has a debt-to-equity ratio of 0.10, a quick ratio of 2.79 and a current ratio of 3.93. The company has a 50 day simple moving average of $94.45 and a two-hundred day simple moving average of $90.88.

Warrior Met Coal (NYSE:HCC - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $1.65 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.40 by $0.25. Warrior Met Coal had a net margin of 13.05% and a return on equity of 10.02%. The business had revenue of $509.69 million during the quarter, compared to analyst estimates of $488.46 million. During the same period in the prior year, the firm earned $0.11 earnings per share. The firm's revenue was up 71.3% compared to the same quarter last year. Sell-side analysts forecast that Warrior Met Coal will post 5.74 EPS for the current year.

Warrior Met Coal Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, August 17th. Shareholders of record on Monday, August 10th were given a $0.08 dividend. The ex-dividend date was Monday, August 10th. This represents a $0.32 dividend on an annualized basis and a yield of 0.4%. Warrior Met Coal's dividend payout ratio is presently 7.69%.

Insiders Place Their Bets

In other news, CEO Walter J. Scheller sold 50,000 shares of the business's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $110.00, for a total transaction of $5,500,000.00. Following the transaction, the chief executive officer directly owned 267,793 shares in the company, valued at $29,457,230. The trade was a 15.73% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Stephen Williams sold 4,800 shares of the company's stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $104.23, for a total transaction of $500,304.00. Following the completion of the transaction, the director directly owned 30,303 shares in the company, valued at $3,158,481.69. This trade represents a 13.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 104,800 shares of company stock valued at $11,250,304 in the last three months. Company insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. BlackRock Inc. bought a new stake in Warrior Met Coal in the second quarter worth $606,503,000. Goehring & Rozencwajg Associates LLC bought a new position in Warrior Met Coal during the first quarter valued at about $55,714,000. Bank of New York Mellon Corp bought a new position in Warrior Met Coal during the second quarter valued at about $31,201,000. Encompass Capital Advisors LLC acquired a new stake in shares of Warrior Met Coal in the fourth quarter worth about $33,133,000. Finally, Summit Street Capital Management LLC bought a new stake in shares of Warrior Met Coal during the 2nd quarter worth about $25,744,000. 92.28% of the stock is owned by institutional investors and hedge funds.

About Warrior Met Coal

Warrior Met Coal, Inc is a mining company that produces and exports metallurgical coal used primarily in steelmaking. The company operates underground mines and related processing facilities in Alabama's Blue Creek coal seam, producing high-quality, low-volatility metallurgical coal for use in blast-furnace steel production.

The company sells its products to steel producers and coke manufacturers in international markets, serving customers across regions that include Europe, Asia and South America.

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