Ramaco Resources (NASDAQ:METC) Stock Price Up 9.4% - Should You Buy?

Key Points

• Ramaco Resources shares jumped 9.4% to about $11.52 in mid-day trading, although volume was 83% below its average.
• Analyst sentiment remains mixed: the stock has an overall “Hold” rating and a consensus price target of $22.71, while several firms recently lowered their targets.
• The company met quarterly EPS expectations at a loss of $0.26 but missed revenue estimates, reporting $122.32 million versus $133.11 million expected; a major shareholder also sold 500,000 shares.

Ramaco Resources, Inc. (NASDAQ:METC - Get Free Report)'s share price shot up 9.4% during mid-day trading on Friday . The stock traded as high as $11.53 and last traded at $11.52. Approximately 349,145 shares changed hands during mid-day trading, a decline of 83% from the average daily volume of 2,037,723 shares. The stock had previously closed at $10.53.

Analyst Ratings Changes

Several equities research analysts recently commented on the stock. Wall Street Zen upgraded shares of Ramaco Resources from a "strong sell" rating to a "sell" rating in a research note on Saturday, August 8th. The Goldman Sachs Group decreased their price objective on shares of Ramaco Resources from $13.00 to $11.00 and set a "neutral" rating for the company in a research note on Thursday, August 6th. Benchmark dropped their price objective on Ramaco Resources from $38.00 to $26.00 and set a "buy" rating on the stock in a report on Thursday, August 6th. B. Riley Financial cut their target price on Ramaco Resources from $24.00 to $22.00 and set a "buy" rating on the stock in a research report on Wednesday, May 13th. Finally, Weiss Ratings cut Ramaco Resources from a "sell (d)" rating to a "sell (d-)" rating in a research report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $22.71.

Ramaco Resources Price Performance

The company has a quick ratio of 3.31, a current ratio of 4.23 and a debt-to-equity ratio of 1.23. The firm has a market capitalization of $761.11 million, a price-to-earnings ratio of -10.83 and a beta of 1.37. The company has a fifty day moving average price of $12.18 and a two-hundred day moving average price of $14.43.

Ramaco Resources (NASDAQ:METC - Get Free Report) last announced its earnings results on Tuesday, August 4th. The energy company reported ($0.26) EPS for the quarter, meeting analysts' consensus estimates of ($0.26). The business had revenue of $122.32 million for the quarter, compared to analysts' expectations of $133.11 million. Ramaco Resources had a negative net margin of 11.98% and a negative return on equity of 13.54%. On average, equities research analysts expect that Ramaco Resources, Inc. will post -0.76 EPS for the current fiscal year.

Insiders Place Their Bets

In other Ramaco Resources news, major shareholder Discovery Capital Management, sold 500,000 shares of the stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $9.57, for a total value of $4,785,000.00. Following the completion of the transaction, the insider directly owned 4,811,360 shares of the company's stock, valued at approximately $46,044,715.20. This trade represents a 9.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 46.07% of the company's stock.

Institutional Investors Weigh In On Ramaco Resources

A number of institutional investors and hedge funds have recently modified their holdings of the company. Millennium Management LLC acquired a new position in Ramaco Resources during the third quarter worth $23,451,000. Merewether Investment Management LP acquired a new stake in Ramaco Resources in the third quarter valued at $18,633,000. Goldman Sachs Group Inc. increased its position in shares of Ramaco Resources by 74.6% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,160,898 shares of the energy company's stock valued at $20,896,000 after buying an additional 496,150 shares in the last quarter. Dimensional Fund Advisors LP increased its position in shares of Ramaco Resources by 38.5% in the first quarter. Dimensional Fund Advisors LP now owns 1,435,059 shares of the energy company's stock valued at $22,179,000 after buying an additional 398,626 shares in the last quarter. Finally, Potrero Capital Research LLC acquired a new position in shares of Ramaco Resources during the 3rd quarter worth $11,575,000. Institutional investors and hedge funds 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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