Ramaco Resources (NASDAQ:METC) Trading Down 6.8% - Here's What Happened

Key Points

• Ramaco Resources shares fell 6.8% to about $14.07 (intraday low $14.12) on Wednesday, with ~891,411 shares traded—down ~65% from its average daily volume.
• Analyst views are mixed: Goldman Sachs cut its target to $14 and rated the stock "sell" while Jefferies upgraded to "buy" but lowered its target; MarketBeat's consensus rating is "Hold" with a consensus target of $31.93.
• In Q4 the company reported EPS of ($0.22) that beat estimates by $0.02, but revenue fell 25.1% year‑over‑year to $108.72M and missed forecasts; the board also authorized a $100 million share buyback (about 9.7% of shares).

Ramaco Resources, Inc. (NASDAQ:METC - Get Free Report)'s share price dropped 6.8% on Wednesday . The company traded as low as $14.12 and last traded at $14.0650. Approximately 891,411 shares were traded during trading, a decline of 65% from the average daily volume of 2,553,623 shares. The stock had previously closed at $15.09.

Wall Street Analyst Weigh In

METC has been the subject of a number of recent analyst reports. The Goldman Sachs Group cut their price target on shares of Ramaco Resources from $16.00 to $14.00 and set a "sell" rating for the company in a report on Monday, March 2nd. Zacks Research downgraded shares of Ramaco Resources from a "hold" rating to a "strong sell" rating in a report on Tuesday, February 3rd. Jefferies Financial Group raised shares of Ramaco Resources from a "hold" rating to a "buy" rating and cut their price target for the stock from $33.00 to $30.00 in a report on Tuesday, January 20th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Ramaco Resources in a report on Monday, December 29th. Finally, Robert W. Baird cut their price target on shares of Ramaco Resources from $40.00 to $30.00 and set an "outperform" rating for the company in a report on Friday, February 27th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, one has assigned a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $31.93.

Ramaco Resources Stock Performance

The firm has a market cap of $953.96 million, a P/E ratio of -14.38 and a beta of 1.43. The company has a debt-to-equity ratio of 0.95, a quick ratio of 4.66 and a current ratio of 5.46. The company's 50 day moving average is $16.09 and its 200 day moving average is $22.21.

Ramaco Resources (NASDAQ:METC - Get Free Report) last issued its quarterly earnings data on Wednesday, February 25th. The energy company reported ($0.22) EPS for the quarter, beating the consensus estimate of ($0.24) by $0.02. The business had revenue of $108.72 million during the quarter, compared to the consensus estimate of $143.48 million. Ramaco Resources had a negative net margin of 9.59% and a negative return on equity of 12.01%. The firm's revenue was down 25.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.02 EPS. As a group, equities analysts predict that Ramaco Resources, Inc. will post 0.05 earnings per share for the current fiscal year.

Ramaco Resources declared that its Board of Directors has approved a stock buyback plan on Tuesday, December 23rd that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the energy company to buy up to 9.7% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Ramaco Resources

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. State Street Corp increased its position in Ramaco Resources by 10.2% in the 4th quarter. State Street Corp now owns 2,489,797 shares of the energy company's stock valued at $44,816,000 after acquiring an additional 230,197 shares during the period. Vanguard Group Inc. increased its position in Ramaco Resources by 40.0% in the 3rd quarter. Vanguard Group Inc. now owns 2,335,257 shares of the energy company's stock valued at $77,507,000 after acquiring an additional 667,199 shares during the period. Renaissance Technologies LLC increased its position in Ramaco Resources by 0.7% in the 4th quarter. Renaissance Technologies LLC now owns 1,526,164 shares of the energy company's stock valued at $27,471,000 after acquiring an additional 9,860 shares during the period. Goldman Sachs Group Inc. increased its position in Ramaco Resources by 74.6% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,160,898 shares of the energy company's stock valued at $20,896,000 after acquiring an additional 496,150 shares during the period. Finally, Dimensional Fund Advisors LP increased its position in Ramaco Resources by 9.8% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,036,433 shares of the energy company's stock valued at $18,652,000 after acquiring an additional 92,649 shares during the period. 74.49% of the stock is currently owned by institutional investors and hedge funds.

About Ramaco Resources

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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