Ramaco Resources (NASDAQ:METC) Shares Gap Down on Analyst Downgrade

Key Points

• Ramaco Resources shares fell 7.5% after Morgan Stanley cut its price target from $13 to $11 and maintained an equal-weight rating; the stock opened at $11.25 versus a prior close of $12.23.
• Analyst sentiment remains mixed but centers on a “Hold” consensus. Goldman Sachs also lowered its target to $11, while the average analyst price target is reported at $22.43.
• The company matched quarterly EPS expectations at a loss of $0.26 but missed revenue estimates, reporting $122.32 million versus the expected $133.11 million; a major shareholder also sold 500,000 shares.

Shares of Ramaco Resources, Inc. (NASDAQ:METC - Get Free Report) gapped down before the market opened on Tuesday after Morgan Stanley lowered their price target on the stock from $13.00 to $11.00. The stock had previously closed at $12.23, but opened at $11.25. Morgan Stanley currently has an equal weight rating on the stock. Ramaco Resources shares last traded at $11.0450, with a volume of 243,913 shares traded.

Other equities analysts have also recently issued reports about the company. The Goldman Sachs Group lowered their price target on Ramaco Resources from $13.00 to $11.00 and set a "neutral" rating on the stock in a research report on Thursday, August 6th. B. Riley Financial decreased their target price on Ramaco Resources from $24.00 to $22.00 and set a "buy" rating for the company in a research note on Wednesday, May 13th. Weiss Ratings lowered Ramaco Resources from a "sell (d)" rating to a "sell (d-)" rating in a report on Thursday, August 6th. Wall Street Zen upgraded shares of Ramaco Resources from a "strong sell" rating to a "sell" rating in a research report on Saturday, August 8th. Finally, Robert W. Baird reissued a "neutral" rating and issued a $13.00 price target on shares of Ramaco Resources in a report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $22.43.

Insider Activity

In other Ramaco Resources news, major shareholder Discovery Capital Management, sold 500,000 shares of the company's stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $9.57, for a total value of $4,785,000.00. Following the transaction, the insider owned 4,811,360 shares of the company's stock, valued at approximately $46,044,715.20. This represents a 9.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 46.07% of the company's stock.

Hedge Funds Weigh In On Ramaco Resources

A number of hedge funds have recently modified their holdings of METC. State Street Corp raised its position in shares of Ramaco Resources by 10.2% during the fourth quarter. State Street Corp now owns 2,489,797 shares of the energy company's stock worth $44,816,000 after purchasing an additional 230,197 shares during the period. Renaissance Technologies LLC boosted its position in shares of Ramaco Resources by 0.7% in the 4th quarter. Renaissance Technologies LLC now owns 1,526,164 shares of the energy company's stock valued at $27,471,000 after purchasing an additional 9,860 shares during the period. Dimensional Fund Advisors LP increased its stake in Ramaco Resources by 38.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,435,059 shares of the energy company's stock worth $22,179,000 after purchasing an additional 398,626 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in Ramaco Resources by 74.6% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,160,898 shares of the energy company's stock worth $20,896,000 after purchasing an additional 496,150 shares in the last quarter. Finally, Geode Capital Management LLC raised its holdings in Ramaco Resources by 20.1% during the 4th quarter. Geode Capital Management LLC now owns 978,950 shares of the energy company's stock worth $17,625,000 after buying an additional 163,971 shares during the period. 74.49% of the stock is currently owned by institutional investors and hedge funds.

Ramaco Resources Trading Down 7.5%

The company has a current ratio of 4.23, a quick ratio of 3.31 and a debt-to-equity ratio of 1.23. The stock has a market cap of $717.17 million, a price-to-earnings ratio of -10.57 and a beta of 1.37. The company has a fifty day simple moving average of $12.05 and a 200-day simple moving average of $14.28.

Ramaco Resources (NASDAQ:METC - Get Free Report) last announced its earnings results on Tuesday, August 4th. The energy company reported ($0.26) EPS for the quarter, hitting the consensus estimate of ($0.26). The company had revenue of $122.32 million during the quarter, compared to analysts' expectations of $133.11 million. Ramaco Resources had a negative net margin of 11.98% and a negative return on equity of 13.54%. On average, research analysts forecast that Ramaco Resources, Inc. will post -0.76 earnings per share for the current fiscal year.

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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