Ramaco Resources (NASDAQ:METC) Hits New 52-Week Low - Time to Sell?

Key Points

• Ramaco Resources shares fell to a new 52-week low of $10.01, below both their 50-day moving average of $13.68 and 200-day moving average of $15.62.
• Analyst sentiment is mixed but cautious: the consensus rating is “Hold”, with an average price target of $26.43, while several firms recently lowered targets and Zacks Research downgraded the stock to “strong sell.”
• The company reported weaker-than-expected quarterly results, including an EPS loss of $0.30 versus an estimated loss of $0.22 and a 9.7% year-over-year revenue decline; a major shareholder also sold 200,000 shares.

Ramaco Resources, Inc. (NASDAQ:METC - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $10.01 and last traded at $10.09, with a volume of 283427 shares traded. The stock had previously closed at $10.35.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on METC shares. Morgan Stanley cut their price objective on Ramaco Resources from $17.00 to $13.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 8th. Weiss Ratings restated a "sell (d)" rating on shares of Ramaco Resources in a report on Thursday, June 18th. Robert W. Baird cut their price target on shares of Ramaco Resources from $30.00 to $25.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 13th. Zacks Research cut shares of Ramaco Resources from a "hold" rating to a "strong sell" rating in a report on Friday, July 17th. Finally, The Goldman Sachs Group cut their price objective on shares of Ramaco Resources from $16.00 to $13.00 and set a "neutral" rating on the stock in a research report on Thursday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $26.43.

Ramaco Resources Stock Performance

The stock has a fifty day moving average of $13.68 and a 200-day moving average of $15.62. The firm has a market capitalization of $661.25 million, a P/E ratio of -9.22 and a beta of 1.35. The company has a quick ratio of 3.93, a current ratio of 4.88 and a debt-to-equity ratio of 1.06.

Ramaco Resources (NASDAQ:METC - Get Free Report) last released its earnings results on Monday, May 11th. The energy company reported ($0.30) EPS for the quarter, missing the consensus estimate of ($0.22) by ($0.08). Ramaco Resources had a negative net margin of 11.52% and a negative return on equity of 13.44%. The firm had revenue of $101.41 million during the quarter, compared to the consensus estimate of $129.72 million. During the same quarter in the previous year, the firm posted ($0.20) EPS. The company's revenue was down 9.7% on a year-over-year basis. On average, research analysts anticipate that Ramaco Resources, Inc. will post -0.58 EPS for the current year.

Insider Activity at Ramaco Resources

In other news, major shareholder Discovery Capital Management, sold 200,000 shares of the business's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $14.79, for a total value of $2,958,000.00. Following the sale, the insider owned 5,311,360 shares of the company's stock, valued at $78,555,014.40. The trade was a 3.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 46.07% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Ramaco Resources

A number of large investors have recently modified their holdings of METC. Goldman Sachs Group Inc. raised its holdings in Ramaco Resources by 27.0% during the first quarter. Goldman Sachs Group Inc. now owns 274,545 shares of the energy company's stock worth $2,260,000 after acquiring an additional 58,304 shares in the last quarter. Empowered Funds LLC grew its stake in Ramaco Resources by 1.8% in the first quarter. Empowered Funds LLC now owns 123,110 shares of the energy company's stock valued at $1,013,000 after purchasing an additional 2,223 shares in the last quarter. Rhumbline Advisers increased its position in shares of Ramaco Resources by 40.1% during the 2nd quarter. Rhumbline Advisers now owns 49,605 shares of the energy company's stock worth $652,000 after purchasing an additional 14,199 shares during the last quarter. Hsbc Holdings PLC increased its position in shares of Ramaco Resources by 91.4% during the 2nd quarter. Hsbc Holdings PLC now owns 27,338 shares of the energy company's stock worth $358,000 after purchasing an additional 13,053 shares during the last quarter. Finally, New York State Common Retirement Fund raised its stake in shares of Ramaco Resources by 144.8% during the 2nd quarter. New York State Common Retirement Fund now owns 32,039 shares of the energy company's stock worth $421,000 after purchasing an additional 18,951 shares in the last quarter. 74.49% of the stock is currently owned by institutional investors and hedge funds.

Ramaco Resources Company Profile

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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