Ramaco Resources (NASDAQ:METC) Shares Down 8.9% - Should You Sell?

Key Points

• Ramaco Resources shares dropped 8.9% to $49.72, significantly lower than its previous close of $54.55, with a trading volume reduced by 52% from its average.
• Analysts have mixed opinions on METC, with ratings ranging from "Strong Buy" to "Hold," and an average price target of $42.25, indicating varied confidence in the stock's future performance.
• Financial performance showed negative earnings per share of ($0.29), missing estimates, despite revenue surpassing expectations at $152.96 million.

Ramaco Resources, Inc. (NASDAQ:METC - Get Free Report) shares fell 8.9% on Wednesday . The company traded as low as $50.00 and last traded at $49.72. 863,493 shares traded hands during trading, a decline of 52% from the average session volume of 1,791,032 shares. The stock had previously closed at $54.55.

Analysts Set New Price Targets

A number of research firms have weighed in on METC. Weiss Ratings reiterated a "hold (c-)" rating on shares of Ramaco Resources in a research note on Wednesday, October 8th. Benchmark reissued a "buy" rating and set a $24.00 price objective (up from $14.00) on shares of Ramaco Resources in a report on Tuesday, August 5th. Northland Capmk raised Ramaco Resources to a "strong-buy" rating in a research note on Wednesday, October 8th. Northland Securities began coverage on Ramaco Resources in a research note on Thursday, October 9th. They issued an "outperform" rating and a $50.00 price target for the company. Finally, B. Riley upped their price target on Ramaco Resources from $14.00 to $50.00 and gave the company a "buy" rating in a research note on Wednesday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Ramaco Resources presently has an average rating of "Moderate Buy" and an average target price of $42.25.

Ramaco Resources Price Performance

The company has a fifty day moving average of $29.46 and a 200-day moving average of $18.08. The firm has a market cap of $2.58 billion, a P/E ratio of -104.49 and a beta of 1.37. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.36 and a quick ratio of 0.84.

Ramaco Resources (NASDAQ:METC - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The energy company reported ($0.29) earnings per share for the quarter, missing the consensus estimate of ($0.22) by ($0.07). The business had revenue of $152.96 million during 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 business's revenue was down 1.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.08 EPS. On average, sell-side analysts anticipate that Ramaco Resources, Inc. will post 0.05 EPS for the current fiscal year.

Insider Activity at Ramaco Resources

In other news, Director Peter A. Leidel sold 1,600,000 shares of the firm's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $18.75, for a total value of $30,000,000.00. Following the completion of the transaction, the director owned 2,502,930 shares in the company, valued at $46,929,937.50. This trade represents a 39.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 36.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

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

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