Ramaco Resources (NASDAQ:METC) Stock Price Down 13% - Should You Sell?

Key Points

• Ramaco Resources stock price dropped by 13%, trading between $41.28 and $41.46, with a significant decline in trading volume.
• Analysts' ratings for Ramaco Resources vary, with a consensus rating of "Moderate Buy" and a target price of $46.40 despite a reduction in ratings from Zacks Research to "strong sell."
• During the latest quarter, Ramaco reported a loss per share of ($0.29), missing expectations and showing a 1.5% year-over-year decrease in revenue.

Shares of Ramaco Resources, Inc. (NASDAQ:METC - Get Free Report) dropped 13% during mid-day trading on Tuesday . The company traded as low as $41.28 and last traded at $41.46. Approximately 869,849 shares changed hands during mid-day trading, a decline of 53% from the average daily volume of 1,836,935 shares. The stock had previously closed at $47.67.

Analyst Upgrades and Downgrades

METC has been the subject of a number of recent analyst reports. Weiss Ratings reissued a "hold (c-)" rating on shares of Ramaco Resources in a report on Wednesday, October 8th. Zacks Research lowered Ramaco Resources from a "hold" rating to a "strong sell" rating in a report on Monday, October 13th. Jefferies Financial Group increased their price objective on Ramaco Resources from $27.00 to $45.00 and gave the stock a "buy" rating in a report on Thursday, September 18th. Northland Securities initiated coverage on Ramaco Resources in a report on Thursday, October 9th. They issued an "outperform" rating and a $50.00 price objective for the company. Finally, Benchmark reissued a "buy" rating and issued a $24.00 price objective (up from $14.00) on shares of Ramaco Resources in a report on Tuesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Ramaco Resources currently has a consensus rating of "Moderate Buy" and a consensus target price of $46.40.

Ramaco Resources Price Performance

The business has a 50-day moving average price of $31.51 and a 200 day moving average price of $19.27. The company has a market cap of $2.24 billion, a price-to-earnings ratio of -89.86 and a beta of 1.37. The company has a current ratio of 1.36, a quick ratio of 0.84 and a debt-to-equity ratio of 0.36.

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

Insider Activity at Ramaco Resources

In other news, Director Peter A. Leidel sold 1,600,000 shares of the stock in a transaction on Friday, August 8th. The stock was sold at an average price of $18.75, for a total transaction of $30,000,000.00. Following the completion of the sale, the director owned 2,502,930 shares in the company, valued at approximately $46,929,937.50. This represents a 39.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 36.20% of the company's stock.

Institutional Trading of Ramaco Resources

A number of hedge funds have recently modified their holdings of the business. CWM LLC lifted its holdings in shares of Ramaco Resources by 6,617.1% in the third quarter. CWM LLC now owns 15,315 shares of the energy company's stock valued at $508,000 after purchasing an additional 15,087 shares in the last quarter. DAVENPORT & Co LLC lifted its holdings in shares of Ramaco Resources by 8.6% in the third quarter. DAVENPORT & Co LLC now owns 23,973 shares of the energy company's stock valued at $796,000 after purchasing an additional 1,900 shares in the last quarter. Shikiar Asset Management Inc. purchased a new stake in shares of Ramaco Resources in the third quarter valued at $1,162,000. Confluence Investment Management LLC acquired a new position in shares of Ramaco Resources in the third quarter worth $406,000. Finally, Exchange Traded Concepts LLC increased its stake in shares of Ramaco Resources by 29.3% in the third quarter. Exchange Traded Concepts LLC now owns 68,230 shares of the energy company's stock worth $2,265,000 after acquiring an additional 15,472 shares during the last quarter. Hedge funds and other institutional investors own 74.49% of the company's stock.

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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