Ramaco Resources (NASDAQ:METC) Trading 7.5% Higher - Should You Buy?

Key Points

• Ramaco Resources shares surged 7.5% during mid-day trading, reaching a high of $20.43, after closing at $18.96 previously.
• Analyst ratings have been mixed, with some brokerages lowering their price targets, such as Benchmark and B. Riley, while Jefferies Financial Group increased its target to $27.00.
• The company reported a loss of ($0.29) earnings per share last quarter, missing expectations, though revenue was $152.96 million, exceeding estimates.

Ramaco Resources, Inc. (NASDAQ:METC - Get Free Report)'s share price traded up 7.5% during trading on Monday . The stock traded as high as $20.43 and last traded at $20.39. 770,720 shares changed hands during trading, a decline of 39% from the average session volume of 1,257,696 shares. The stock had previously closed at $18.96.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. Jefferies Financial Group reissued a "buy" rating and set a $27.00 target price (up from $15.00) on shares of Ramaco Resources in a research report on Wednesday, July 16th. B. Riley lowered their price target on Ramaco Resources from $18.00 to $14.00 and set a "buy" rating on the stock in a research report on Friday, April 11th. Wall Street Zen downgraded Ramaco Resources from a "hold" rating to a "sell" rating in a research report on Thursday, May 22nd. Finally, Benchmark reaffirmed a "buy" rating and issued a $24.00 price target (up from $14.00) on shares of Ramaco Resources in a research report on Tuesday.

Ramaco Resources Stock Up 6.3%

The firm has a market capitalization of $1.03 billion, a P/E ratio of -51.49 and a beta of 1.35. The firm's 50-day moving average is $15.16 and its 200 day moving average is $11.29. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.87 and a current ratio of 1.36.

Ramaco Resources (NASDAQ:METC - Get Free Report) last issued its earnings results on Thursday, July 31st. The energy company reported ($0.29) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.22) by ($0.07). The firm had revenue of $152.96 million during the quarter, compared to the consensus estimate of $131.55 million. Ramaco Resources had a negative net margin of 3.17% and a negative return on equity of 5.55%. The firm's revenue for the quarter was down 1.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.08 earnings per share. As a group, equities research analysts predict that Ramaco Resources, Inc. will post 0.05 EPS for the current fiscal year.

Ramaco Resources Cuts Dividend

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

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in Ramaco Resources by 3.5% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 41,656 shares of the energy company's stock worth $427,000 after purchasing an additional 1,425 shares during the last quarter. AlphaQuest LLC lifted its holdings in shares of Ramaco Resources by 30.6% during the first quarter. AlphaQuest LLC now owns 6,332 shares of the energy company's stock worth $52,000 after purchasing an additional 1,482 shares during the period. Legal & General Group Plc raised its stake 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 buying an additional 1,822 shares during the last quarter. MetLife Investment Management LLC raised its stake in Ramaco Resources by 13.9% during the fourth quarter. MetLife Investment Management LLC now owns 16,189 shares of the energy company's stock worth $166,000 after buying an additional 1,970 shares during the last quarter. Finally, Empowered Funds LLC raised its stake in Ramaco Resources by 1.8% during the first quarter. Empowered Funds LLC now owns 123,110 shares of the energy company's stock worth $1,013,000 after buying an additional 2,223 shares during the last quarter. 74.49% of the stock is owned by institutional investors.

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.