Warrior Met Coal (NYSE:HCC) Shares Gap Down - Here's What Happened

Key Points

• Warrior Met Coal shares gapped lower, opening at $88.53 versus a prior close of $91.80, and last traded near $88.95.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of $103.83, despite some rating and target-price reductions.
• The company exceeded quarterly expectations, reporting $1.65 in earnings per share and $509.69 million in revenue, while revenue rose 71.3% year over year; it also maintains a $0.08 quarterly dividend.

Warrior Met Coal (NYSE:HCC - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $91.80, but opened at $88.53. Warrior Met Coal shares last traded at $88.9450, with a volume of 101,696 shares.

Wall Street Analysts Forecast Growth

Several research firms have commented on HCC. Citigroup reaffirmed a "buy" rating on shares of Warrior Met Coal in a research note on Wednesday, June 10th. Zacks Research downgraded Warrior Met Coal from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 7th. B. Riley Financial boosted their target price on Warrior Met Coal from $117.00 to $123.00 and gave the company a "buy" rating in a report on Wednesday, June 10th. Wall Street Zen upgraded Warrior Met Coal from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. Finally, UBS Group cut their price target on Warrior Met Coal from $100.00 to $98.00 and set a "buy" rating for the company in a research note on Thursday, August 6th. Four research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $103.83.

Warrior Met Coal Stock Performance

The firm has a fifty day moving average of $93.18 and a 200-day moving average of $90.41. The stock has a market capitalization of $4.67 billion, a price-to-earnings ratio of 21.31 and a beta of 0.67. The company has a quick ratio of 2.79, a current ratio of 3.93 and a debt-to-equity ratio of 0.10.

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

Warrior Met Coal Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, August 17th. Shareholders of record on Monday, August 10th were given a dividend of $0.08 per share. 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 payout ratio is presently 7.69%.

Insider Activity

In other news, Director Stephen D. Williams sold 4,800 shares of the firm's stock in a transaction that occurred on Wednesday, August 19th. The shares were 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 of the company's stock, valued at $3,158,481.69. This trade represents a 13.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Walter Scheller sold 50,000 shares of Warrior Met Coal stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $110.00, for a total value of $5,500,000.00. Following the transaction, the chief executive officer owned 267,793 shares of the company's stock, valued at $29,457,230. This represents a 15.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 104,800 shares of company stock worth $11,250,304 in the last ninety days. Insiders own 2.10% of the company's stock.

Institutional Investors Weigh In On Warrior Met Coal

Large investors have recently bought and sold shares of the stock. Quantbot Technologies LP acquired a new position in shares of Warrior Met Coal in the second quarter worth $31,000. IFP Advisors Inc acquired a new stake in shares of Warrior Met Coal during the fourth quarter valued at $37,000. Meeder Asset Management Inc. purchased a new stake in Warrior Met Coal during the 2nd quarter worth about $37,000. Allworth Financial LP purchased a new stake in Warrior Met Coal during the 2nd quarter worth about $39,000. Finally, Nykredit A S acquired a new position in Warrior Met Coal in the 2nd quarter valued at about $50,000. Institutional investors and hedge funds own 92.28% of the company's stock.

Warrior Met Coal Company Profile

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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