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) shares gapped down before the market opened 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.

The energy company reported ($0.29) earnings per share for the quarter, missing analysts' consensus estimates of ($0.22) by ($0.07). The business had revenue of $152.96 million for the quarter, compared to analyst estimates of $131.55 million. Ramaco Resources had a negative return on equity of 5.50% and a negative net margin of 3.17%. The firm's revenue for the quarter was down 1.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.08 EPS.

Ramaco Resources Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 13th. Stockholders of record on Friday, May 30th were issued a $0.0688 dividend. The ex-dividend date was Friday, May 30th. This represents a $0.28 annualized dividend and a dividend yield of 1.2%. Ramaco Resources's dividend payout ratio (DPR) is -62.22%.

Analysts Set New Price Targets

METC has been the subject of a number of recent analyst reports. Wall Street Zen cut Ramaco Resources from a "hold" rating to a "sell" rating in a research report on Thursday, May 22nd. Jefferies Financial Group reaffirmed a "buy" rating and set a $27.00 target price (up previously from $15.00) on shares of Ramaco Resources in a report on Wednesday, July 16th. Benchmark increased their price objective on Ramaco Resources from $14.00 to $24.00 and gave the stock a "buy" rating in a report on Tuesday. Finally, B. Riley decreased their price objective on shares of Ramaco Resources from $18.00 to $14.00 and set a "buy" rating for the company in a research report on Friday, April 11th.

Institutional Trading of Ramaco Resources

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Brooklyn Investment Group bought a new stake in shares of Ramaco Resources during the 1st quarter valued at $25,000. State of Wyoming bought a new stake in Ramaco Resources during the 1st quarter valued at about $50,000. AlphaQuest LLC increased its position in Ramaco Resources by 30.6% during the 1st 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. Farther Finance Advisors LLC raised its stake in shares of Ramaco Resources by 384.0% during the 2nd quarter. Farther Finance Advisors LLC now owns 3,920 shares of the energy company's stock worth $52,000 after acquiring an additional 3,110 shares in the last quarter. Finally, Quantbot Technologies LP purchased a new stake in Ramaco Resources during the 1st quarter valued at about $73,000. Hedge funds and other institutional investors own 74.49% of the company's stock.

Ramaco Resources Stock Performance

The company has a debt-to-equity ratio of 0.33, a current ratio of 1.32 and a quick ratio of 0.87. The firm has a fifty day moving average of $14.41 and a 200 day moving average of $11.06. The stock has a market capitalization of $1.27 billion, a price-to-earnings ratio of -51.48 and a beta of 1.35.

About Ramaco Resources

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.