Ramaco Resources (NASDAQ:METC) Trading Down 9.1% - Time to Sell?

Key Points

• Ramaco Resources' stock fell by 9.1% on Tuesday, trading at $23.57, significantly down from the previous close of $25.93, with a trading volume decline of 61% from its average.
• Despite the recent drop, analysts from Jefferies and Benchmark have reiterated a "buy" rating for Ramaco Resources, with price targets of $27.00 and $24.00 respectively.
• The company reported a quarterly loss of ($0.29) earnings per share, missing analysts’ estimates, and a revenue of $152.96 million, which is a 1.5% decrease year-over-year.

Ramaco Resources, Inc. (NASDAQ:METC - Get Free Report) dropped 9.1% during trading on Tuesday . The stock traded as low as $23.76 and last traded at $23.57. Approximately 611,612 shares were traded during mid-day trading, a decline of 61% from the average daily volume of 1,557,069 shares. The stock had previously closed at $25.93.

Analyst Upgrades and Downgrades

METC has been the topic of several recent research reports. Benchmark reaffirmed a "buy" rating and set a $24.00 target price (up from $14.00) on shares of Ramaco Resources in a research note on Tuesday, August 5th. Zacks Research raised shares of Ramaco Resources from a "strong sell" rating to a "hold" rating in a research note on Friday, August 29th. Jefferies Financial Group reaffirmed a "buy" rating and set a $27.00 target price (up from $15.00) on shares of Ramaco Resources in a research note on Wednesday, July 16th. Finally, Wall Street Zen downgraded shares of Ramaco Resources from a "hold" rating to a "sell" rating in a research note on Thursday, May 22nd. Three investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $21.67.

Ramaco Resources Stock Performance

The firm's 50-day moving average is $20.95 and its 200 day moving average is $13.38. The stock has a market cap of $1.56 billion, a PE ratio of -62.62 and a beta of 1.26. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.84 and a current ratio of 1.36.

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

Insider Buying and Selling at Ramaco Resources

In other news, Director Peter A. Leidel sold 1,600,000 shares of the company's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $18.75, for a total transaction of $30,000,000.00. Following the transaction, the director directly owned 2,502,930 shares of the company's stock, valued at $46,929,937.50. This represents a 39.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 36.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Ramaco Resources

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. State of Wyoming grew its stake in Ramaco Resources by 219.9% in the 2nd quarter. State of Wyoming now owns 19,596 shares of the energy company's stock valued at $257,000 after acquiring an additional 13,470 shares during the last quarter. Sender Co & Partners Inc. acquired a new stake in Ramaco Resources in the 2nd quarter valued at about $285,000. Vident Advisory LLC acquired a new stake in Ramaco Resources in the 2nd quarter valued at about $610,000. Quantinno Capital Management LP lifted its holdings in Ramaco Resources by 85.1% in the 2nd quarter. Quantinno Capital Management LP now owns 22,963 shares of the energy company's stock valued at $302,000 after purchasing an additional 10,558 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Ramaco Resources by 23.0% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 19,483 shares of the energy company's stock valued at $256,000 after purchasing an additional 3,638 shares in the last quarter. 74.49% of the stock is owned by institutional investors and hedge funds.

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.