Ramaco Resources Target of Unusually Large Options Trading (NASDAQ:METC)

Key Points

• Ramaco Resources (NASDAQ:METC) saw unusually heavy options activity on Tuesday, with traders buying 25,377 call options — about 665% above its average daily volume.
• Insider selling has been notable, including recent share sales by major shareholder Discovery Capital Management and Director Peter A. Leidel. In total, insiders sold 624,192 shares worth about $9.0 million over the last quarter.
• The stock fell to $13.09 while the company reported weaker-than-expected quarterly results, missing both EPS and revenue estimates. Analysts currently have a Moderate Buy consensus, with a price target of $27.29.

Ramaco Resources, Inc. (NASDAQ:METC - Get Free Report) saw unusually large options trading on Tuesday. Traders acquired 25,377 call options on the stock. This represents an increase of approximately 665% compared to the average daily volume of 3,319 call options.

Insider Buying and Selling at Ramaco Resources

In related news, major shareholder Discovery Capital Management, sold 200,000 shares of Ramaco Resources stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $14.79, for a total value of $2,958,000.00. Following the completion of the sale, the insider owned 5,311,360 shares of the company's stock, valued at approximately $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 can be accessed through this hyperlink. Also, Director Peter A. Leidel sold 200,000 shares of Ramaco Resources stock in a transaction dated Wednesday, March 25th. The stock was sold at an average price of $14.06, for a total value of $2,812,000.00. Following the completion of the sale, the director directly owned 2,070,942 shares of the company's stock, valued at approximately $29,117,444.52. This trade represents a 8.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 624,192 shares of company stock valued at $9,006,956 in the last quarter. 46.07% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Quarry LP purchased a new stake in shares of Ramaco Resources in the fourth quarter worth $27,000. Caitong International Asset Management Co. Ltd increased its stake in Ramaco Resources by 14,250.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,722 shares of the energy company's stock worth $31,000 after acquiring an additional 1,710 shares during the last quarter. Allworth Financial LP increased its stake in Ramaco Resources by 3,603.6% in the 3rd quarter. Allworth Financial LP now owns 1,037 shares of the energy company's stock worth $34,000 after acquiring an additional 1,009 shares during the last quarter. Spirit of America Management Corp NY purchased a new stake in shares of Ramaco Resources in the 4th quarter valued at about $38,000. Finally, Advisory Services Network LLC bought a new stake in shares of Ramaco Resources during the 3rd quarter valued at about $38,000. Institutional investors own 74.49% of the company's stock.

Ramaco Resources Price Performance

Shares of METC traded down $0.33 during midday trading on Tuesday, hitting $13.09. 1,625,383 shares of the company traded hands, compared to its average volume of 2,104,807. Ramaco Resources has a one year low of $9.75 and a one year high of $57.80. The firm has a market cap of $852.81 million, a P/E ratio of -11.91 and a beta of 1.31. The company has a debt-to-equity ratio of 1.06, a current ratio of 4.88 and a quick ratio of 3.93. The stock has a 50-day moving average of $14.74 and a 200-day moving average of $16.37.

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 analysts' consensus estimates of ($0.22) by ($0.08). The firm had revenue of $101.41 million during the quarter, compared to the consensus estimate of $129.72 million. Ramaco Resources had a negative net margin of 11.52% and a negative return on equity of 13.44%. Ramaco Resources's revenue was down 9.7% compared to the same quarter last year. During the same quarter last year, the business posted ($0.20) earnings per share. As a group, sell-side analysts predict that Ramaco Resources will post -0.27 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on METC shares. Weiss Ratings reissued a "sell (d)" rating on shares of Ramaco Resources in a research report on Thursday. Morgan Stanley reduced their price objective on shares of Ramaco Resources from $17.50 to $17.00 and set an "equal weight" rating for the company in a research note on Thursday, April 9th. Zacks Research raised shares of Ramaco Resources from a "strong sell" rating to a "hold" rating in a report on Friday, April 10th. B. Riley Financial dropped 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, The Goldman Sachs Group raised Ramaco Resources from a "sell" rating to a "neutral" rating and raised their price target for the stock from $14.00 to $15.00 in a report on Tuesday, April 21st. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $27.29.

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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