Ramaco Resources (NASDAQ:METC) Upgraded by The Goldman Sachs Group to "Hold" Rating

Key Points

• The Goldman Sachs Group upgraded Ramaco Resources (METC) from a "strong sell" to a "hold," reflecting an improved analyst stance on the stock.
• The company's Board authorized a $100 million stock repurchase (up to ~9.7% of outstanding shares), a move management says indicates they view the shares as undervalued.
• Ramaco reported ($0.22) EPS (beating the ($0.24) estimate) but revenue fell 25.1% year-over-year to $108.7 million, leaving the company unprofitable with negative margins and analysts forecasting roughly -$0.04 EPS for the current year.

Ramaco Resources (NASDAQ:METC - Get Free Report) was upgraded by research analysts at The Goldman Sachs Group from a "strong sell" rating to a "hold" rating in a note issued to investors on Monday,Zacks.com reports.

Several other research firms also recently weighed in on METC. Weiss Ratings reiterated a "sell (d+)" rating on shares of Ramaco Resources in a report on Monday, December 29th. Zacks Research upgraded shares of Ramaco Resources from a "strong sell" rating to a "hold" rating in a report on Friday, April 10th. Robert W. Baird dropped their target price 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. Jefferies Financial Group upgraded shares of Ramaco Resources from a "hold" rating to a "buy" rating and dropped their target price for the company from $33.00 to $30.00 in a report on Tuesday, January 20th. Finally, Morgan Stanley dropped their target price on shares of Ramaco Resources from $17.50 to $17.00 and set an "equal weight" rating for the company in a report on Thursday, April 9th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $32.00.

Ramaco Resources Stock Up 6.1%

Ramaco Resources stock opened at $14.93 on Monday. Ramaco Resources has a fifty-two week low of $8.21 and a fifty-two week high of $57.80. 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 firm has a 50 day moving average price of $15.05 and a 200 day moving average price of $20.85. The company has a market capitalization of $1.00 billion, a PE ratio of -15.08 and a beta of 1.43.

Ramaco Resources (NASDAQ:METC - Get Free Report) last posted its earnings results on Wednesday, February 25th. The energy company reported ($0.22) earnings per share for the quarter, beating the consensus estimate of ($0.24) by $0.02. Ramaco Resources had a negative net margin of 9.59% and a negative return on equity of 12.01%. The firm had revenue of $108.72 million during the quarter, compared to the consensus estimate of $143.48 million. During the same quarter last year, the firm earned $0.02 EPS. The firm's revenue for the quarter was down 25.1% on a year-over-year basis. Research analysts expect that Ramaco Resources will post -0.04 earnings per share for the current year.

Ramaco Resources announced that its Board of Directors has authorized a stock repurchase program on Tuesday, December 23rd that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the energy company to purchase up to 9.7% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its shares are undervalued.

Institutional Investors Weigh In On Ramaco Resources

Large investors have recently added to or reduced their stakes in the business. Quarry LP purchased a new stake in Ramaco Resources during the 4th quarter worth approximately $27,000. Caitong International Asset Management Co. Ltd increased its stake in Ramaco Resources by 14,250.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,722 shares of the energy company's stock worth $31,000 after buying an additional 1,710 shares during the period. Archer Investment Corp purchased a new stake in Ramaco Resources during the 3rd quarter worth approximately $33,000. Allworth Financial LP increased its stake in Ramaco Resources by 3,603.6% during the 3rd quarter. Allworth Financial LP now owns 1,037 shares of the energy company's stock worth $34,000 after buying an additional 1,009 shares during the period. Finally, MCF Advisors LLC purchased a new stake in Ramaco Resources during the 3rd quarter worth approximately $35,000. 74.49% of the stock is owned by hedge funds and other institutional investors.

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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