Ramaco Resources (NASDAQ:METC) Trading Down 5.3% - Should You Sell?

Key Points

• Ramaco Resources' shares fell by 5.3% to $25.51, with trading volume declining by 22% compared to its average daily volume.
• The company reported a loss of ($0.29) earnings per share, missing analysts' estimates, while revenue was $152.96 million, exceeding expectations.
• Analysts have mixed ratings on Ramaco Resources; Jefferies has a "buy" rating with a target price of $27.00, while Wall Street Zen downgraded it to a "sell" rating.

Shares of Ramaco Resources, Inc. (NASDAQ:METC - Get Free Report) dropped 5.3% during mid-day trading on Friday . The stock traded as low as $25.57 and last traded at $25.51. Approximately 1,132,767 shares changed hands during mid-day trading, a decline of 22% from the average daily volume of 1,457,150 shares. The stock had previously closed at $26.95.

Analyst Upgrades and Downgrades

METC has been the topic of several research analyst reports. Benchmark reiterated a "buy" rating and issued a $24.00 price objective (up from $14.00) on shares of Ramaco Resources in a report on Tuesday, August 5th. Jefferies Financial Group reiterated a "buy" rating and issued a $27.00 price objective (up from $15.00) on shares of Ramaco Resources in a report on Wednesday, July 16th. Finally, Wall Street Zen cut Ramaco Resources from a "hold" rating to a "sell" rating in a report on Thursday, May 22nd. Three investment analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company presently has an average rating of "Buy" and a consensus price target of $21.67.

Ramaco Resources Trading Down 0.2%

The company has a market capitalization of $1.15 billion, a price-to-earnings ratio of -46.24 and a beta of 1.35. The company has a current ratio of 1.36, a quick ratio of 0.84 and a debt-to-equity ratio of 0.36. The company has a fifty day moving average of $17.66 and a 200-day moving average of $12.15.

Ramaco Resources (NASDAQ:METC - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The energy company reported ($0.29) EPS for the quarter, missing the consensus estimate of ($0.22) by ($0.07). The firm had revenue of $152.96 million for the quarter, compared to analysts' expectations of $131.55 million. Ramaco Resources had a negative net margin of 3.17% and a negative return on equity of 5.55%. The firm's quarterly revenue was down 1.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.08 EPS. As a group, equities research analysts anticipate that Ramaco Resources, Inc. will post 0.05 earnings per share for the current fiscal year.

Ramaco Resources Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 13th. Stockholders of record on Friday, May 30th were given a dividend of $0.0688 per share. This represents a $0.28 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend was Friday, May 30th. Ramaco Resources's payout ratio is presently -62.22%.

Insider Activity at Ramaco Resources

In other news, Director Peter A. Leidel sold 1,600,000 shares of Ramaco Resources stock in a transaction that occurred on Friday, August 8th. The shares were sold at an average price of $18.75, for a total transaction of $30,000,000.00. Following the sale, the director owned 2,502,930 shares of the company's stock, valued at approximately $46,929,937.50. The trade was a 39.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 36.20% of the company's stock.

Institutional Trading of Ramaco Resources

A number of institutional investors and hedge funds have recently added to or reduced their stakes in METC. Brooklyn Investment Group purchased a new stake in Ramaco Resources in the first quarter valued at approximately $25,000. Ameritas Investment Partners Inc. raised its position in Ramaco Resources by 63.9% in the second quarter. Ameritas Investment Partners Inc. now owns 3,632 shares of the energy company's stock valued at $48,000 after purchasing an additional 1,416 shares during the period. State of Wyoming purchased a new stake in Ramaco Resources in the first quarter valued at approximately $50,000. AlphaQuest LLC raised its position in Ramaco Resources by 30.6% in the first quarter. AlphaQuest LLC now owns 6,332 shares of the energy company's stock valued at $52,000 after purchasing an additional 1,482 shares during the period. Finally, Farther Finance Advisors LLC raised its position in Ramaco Resources by 384.0% in the second quarter. Farther Finance Advisors LLC now owns 3,920 shares of the energy company's stock valued at $52,000 after purchasing an additional 3,110 shares during the period. Hedge funds and other institutional investors own 74.49% of the company's stock.

Ramaco Resources Company Profile

Ramaco Resources, Inc engages in the development, operation, and sale of metallurgical coal. Its development portfolio includes the Elk Creek project that covers an area of approximately 20,200 acres located in southern West Virginia; the Berwind property covering an area of approximately 62,500 acres situated on the border of West Virginia and Virginia; the Knox Creek property, which covers an area of approximately 64,050 acres is located in Virginia; the Maben property covering an area of approximately 28,000 acres situated in southwestern Pennsylvania southern West Virginia; and the Brook Mine property that covers an area of approximately 16,000 acres located in northeastern Wyoming.