Ramaco Resources (NASDAQ:METC) Shares Gap Down on Disappointing Earnings

Key Points

• Ramaco Resources, Inc. (NASDAQ:METC) gapped down after reporting a disappointing quarterly earnings per share (EPS) of ($0.29), missing the estimate of ($0.22) by ($0.07).
• The company's revenue for the quarter reached $152.96 million, exceeding forecasts of $131.55 million, despite a 1.5% decline compared to the same quarter last year.
• Ramaco Resources also cut its quarterly dividend to $0.0688 per share, reflecting a significant negative payout ratio of -350.00%.

Ramaco Resources, Inc. (NASDAQ:METC - Get Free Report) gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $20.35, but opened at $18.50. Ramaco Resources shares last traded at $18.61, with a volume of 1,164,659 shares traded.

The energy company reported ($0.29) EPS for the quarter, missing the consensus estimate of ($0.22) by ($0.07). Ramaco Resources had a negative return on equity of 0.08% and a negative net margin of 0.05%. The business had revenue of $152.96 million for the quarter, compared to the consensus estimate of $131.55 million. During the same quarter in the prior year, the firm posted $0.08 earnings per share. The business's revenue was down 1.5% compared to the same quarter last year.

Ramaco Resources Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 13th. Shareholders of record on Friday, May 30th were given a dividend of $0.0688 per share. This represents a $0.28 annualized dividend and a yield of 1.5%. The ex-dividend date was Friday, May 30th. Ramaco Resources's payout ratio is currently -350.00%.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on METC. B. Riley lowered their price target on Ramaco Resources from $18.00 to $14.00 and set a "buy" rating for the company in a report on Friday, April 11th. Benchmark dropped their price target on shares of Ramaco Resources from $18.00 to $14.00 and set a "buy" rating on the stock in a research report on Tuesday, May 13th. Jefferies Financial Group restated a "buy" rating and issued a $27.00 price target (up previously from $15.00) on shares of Ramaco Resources in a research report on Wednesday, July 16th. Finally, Wall Street Zen downgraded shares of Ramaco Resources from a "hold" rating to a "sell" rating in a research report on Thursday, May 22nd.

Hedge Funds Weigh In On Ramaco Resources

A number of institutional investors have recently modified their holdings of METC. Raymond James Financial Inc. bought a new stake in Ramaco Resources during the fourth quarter worth $487,000. American Century Companies Inc. lifted its holdings in Ramaco Resources by 10.8% during the fourth quarter. American Century Companies Inc. now owns 870,957 shares of the energy company's stock worth $8,936,000 after acquiring an additional 84,734 shares during the period. Wells Fargo & Company MN lifted its holdings in Ramaco Resources by 39.0% during the fourth quarter. Wells Fargo & Company MN now owns 797,283 shares of the energy company's stock worth $8,180,000 after acquiring an additional 223,682 shares during the period. Legal & General Group Plc lifted its holdings in Ramaco Resources by 15.3% during the fourth quarter. Legal & General Group Plc now owns 13,752 shares of the energy company's stock worth $141,000 after acquiring an additional 1,822 shares during the period. Finally, Renaissance Technologies LLC increased its holdings in Ramaco Resources by 31.1% in the 4th quarter. Renaissance Technologies LLC now owns 119,800 shares of the energy company's stock worth $1,229,000 after acquiring an additional 28,400 shares during the last quarter. 74.49% of the stock is owned by institutional investors and hedge funds.

Ramaco Resources Trading Down 6.8%

The firm has a fifty day moving average of $13.96 and a two-hundred day moving average of $10.89. The company has a market cap of $1.04 billion, a PE ratio of -236.64 and a beta of 1.30. The company has a current ratio of 1.32, a quick ratio of 0.87 and a debt-to-equity ratio of 0.33.

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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