Ramaco Resources (NASDAQ:METC) Stock Price Down 8.9% - Here's Why

Key Points

• Ramaco Resources shares fell 8.9% during intraday trading, dropping from $12.44 to as low as $11.36 as volume came in well below average.
• The decline came amid multiple analyst downgrades and target cuts, including moves from Morgan Stanley, Goldman Sachs, and Zacks Research; the stock now carries a consensus rating of “Hold” with a target price of $26.43.
• Recent fundamentals have also been weak: Ramaco posted a Q1 loss of $0.30 per share on revenue of $101.41 million, both worse than estimates, while revenue fell 9.7% year over year.

Ramaco Resources, Inc. (NASDAQ:METC - Get Free Report)'s stock price fell 8.9% during mid-day trading on Thursday . The stock traded as low as $11.36 and last traded at $11.33. 547,462 shares traded hands during mid-day trading, a decline of 73% from the average daily volume of 2,002,051 shares. The stock had previously closed at $12.44.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Robert W. Baird dropped their price objective on Ramaco Resources from $30.00 to $25.00 and set an "outperform" rating for the company in a report on Wednesday, May 13th. Morgan Stanley lowered their price target on Ramaco Resources from $17.00 to $13.00 and set an "equal weight" rating for the company in a research note on Wednesday, July 8th. The Goldman Sachs Group cut their price target on shares of Ramaco Resources from $16.00 to $13.00 and set a "neutral" rating on the stock in a research report on Thursday, July 9th. Zacks Research cut shares of Ramaco Resources from a "hold" rating to a "strong sell" rating in a report on Friday, July 17th. Finally, B. Riley Financial cut their target price on shares of Ramaco Resources from $24.00 to $22.00 and set a "buy" rating on the stock in a report on Wednesday, May 13th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $26.43.

Ramaco Resources Price Performance

The stock has a market cap of $739.34 million, a price-to-earnings ratio of -10.30 and a beta of 1.35. The company has a debt-to-equity ratio of 1.06, a quick ratio of 3.93 and a current ratio of 4.88. The company has a 50-day simple moving average of $13.84 and a two-hundred day simple moving average of $15.74.

Ramaco Resources (NASDAQ:METC - Get Free Report) last released its quarterly earnings data on Monday, May 11th. The energy company reported ($0.30) EPS for the quarter, missing the consensus estimate of ($0.22) by ($0.08). The company had revenue of $101.41 million during the quarter, compared to analyst estimates of $129.72 million. Ramaco Resources had a negative net margin of 11.52% and a negative return on equity of 13.44%. The company's quarterly revenue was down 9.7% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.20) EPS. As a group, equities research analysts forecast that Ramaco Resources, Inc. will post -0.58 EPS for the current year.

Insider Activity at Ramaco Resources

In other news, major shareholder Discovery Capital Management, sold 200,000 shares of Ramaco Resources stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $14.79, for a total value of $2,958,000.00. Following the completion of the transaction, the insider owned 5,311,360 shares of the company's stock, valued at $78,555,014.40. This trade represents a 3.63% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 46.07% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Ramaco Resources

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

Ramaco Resources Company Profile

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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