Ramaco Resources (NASDAQ:METC) Shares Down 9.8% - Here's What Happened

Key Points

• Shares fell 9.8% to $14.29 on Thursday, trading about 989,507 shares — roughly 66% below the stock's average daily volume.
• Ramaco reported quarterly EPS of ($0.22), slightly beating estimates, but revenue plunged 25.1% year-over-year to $108.7 million and the company posted negative net margins and return on equity.
• Analyst sentiment is mixed with several recent price-target cuts (consensus target $31.93 and an average rating of "Hold"), while the board authorized a $100 million share buyback (up to 9.7% of shares outstanding).

Ramaco Resources, Inc. (NASDAQ:METC - Get Free Report) was down 9.8% on Thursday . The stock traded as low as $14.25 and last traded at $14.29. Approximately 989,507 shares were traded during trading, a decline of 66% from the average daily volume of 2,910,306 shares. The stock had previously closed at $15.84.

Analysts Set New Price Targets

METC has been the topic of several recent analyst reports. Robert W. Baird dropped their price target on Ramaco Resources from $40.00 to $30.00 and set an "outperform" rating on the stock in a research report on Friday, February 27th. Weiss Ratings reissued a "sell (d+)" rating on shares of Ramaco Resources in a report on Monday, December 29th. The Goldman Sachs Group cut their price target on shares of Ramaco Resources from $16.00 to $14.00 and set a "sell" rating for the company in a report on Monday. Jefferies Financial Group upgraded Ramaco Resources from a "hold" rating to a "buy" rating and lowered their target price for the company from $33.00 to $30.00 in a research note on Tuesday, January 20th. Finally, Zacks Research lowered Ramaco Resources from a "hold" rating to a "strong sell" rating in a research note on Tuesday, February 3rd. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, one has assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, Ramaco Resources presently has an average rating of "Hold" and a consensus target price of $31.93.

Ramaco Resources Price Performance

The company has a 50 day moving average price of $19.04 and a 200 day moving average price of $24.00. The company has a current ratio of 5.46, a quick ratio of 4.66 and a debt-to-equity ratio of 0.95. The company has a market capitalization of $818.75 million, a P/E ratio of -14.78 and a beta of 1.41.

Ramaco Resources (NASDAQ:METC - Get Free Report) last released its quarterly earnings results on Wednesday, February 25th. The energy company reported ($0.22) EPS for the quarter, beating the consensus estimate of ($0.24) by $0.02. Ramaco Resources had a negative net margin of 9.59% and a negative return on equity of 12.01%. The business had revenue of $108.72 million for the quarter, compared to the consensus estimate of $143.48 million. During the same period in the prior year, the company posted $0.02 earnings per share. Ramaco Resources's revenue was down 25.1% compared to the same quarter last year. On average, equities analysts predict that Ramaco Resources, Inc. will post 0.05 EPS for the current fiscal year.

Ramaco Resources announced that its board has authorized a share repurchase program on Tuesday, December 23rd that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the energy company to buy up to 9.7% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's board believes its stock is undervalued.

Institutional Trading of Ramaco Resources

Several institutional investors have recently added to or reduced their stakes in the stock. Quarry LP bought a new stake in Ramaco Resources in the 4th quarter worth about $27,000. Caitong International Asset Management Co. Ltd lifted its holdings in Ramaco Resources by 14,250.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,722 shares of the energy company's stock valued at $31,000 after purchasing an additional 1,710 shares during the last quarter. Archer Investment Corp bought a new position in Ramaco Resources in the 3rd quarter worth approximately $33,000. Allworth Financial LP raised its stake in shares of Ramaco Resources by 3,603.6% during the 3rd quarter. Allworth Financial LP now owns 1,037 shares of the energy company's stock valued at $34,000 after purchasing an additional 1,009 shares during the period. Finally, MCF Advisors LLC purchased a new stake in shares of Ramaco Resources in the third quarter worth about $35,000. 74.49% of the stock is currently owned by institutional investors.

About Ramaco Resources

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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