SunCoke Energy (NYSE:SXC) Stock Price Down 9.3% on Disappointing Earnings

Key Points

• Shares fell 9.3% after SunCoke reported quarterly EPS of ($0.05), missing the consensus of $0.08, even as revenue rose about 4.4% year-over-year.
• The company paid a quarterly dividend of $0.12 (annualized $0.48), implying a 7.7% yield, though the reported dividend payout ratio is -92.31%.
• Analysts have turned cautious—Weiss Ratings cut to a "sell" and B. Riley lowered its target to $9—while insiders (CFO and SVP) increased holdings and institutional investors own roughly 90% of the stock.

SunCoke Energy, Inc. (NYSE:SXC - Get Free Report) shares dropped 9.3% during trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $6.14 and last traded at $6.07. Approximately 223,015 shares changed hands during mid-day trading, a decline of 86% from the average daily volume of 1,619,819 shares. The stock had previously closed at $6.69.

The energy company reported ($0.05) earnings per share for the quarter, missing analysts' consensus estimates of $0.08 by ($0.13). SunCoke Energy had a negative net margin of 2.41% and a positive return on equity of 7.43%. During the same period in the previous year, the firm posted $0.20 earnings per share. SunCoke Energy's revenue was up 4.4% on a year-over-year basis.

SunCoke Energy Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, March 2nd. Stockholders of record on Tuesday, February 17th were paid a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a dividend yield of 7.7%. The ex-dividend date was Tuesday, February 17th. SunCoke Energy's dividend payout ratio is -92.31%.

Wall Street Analyst Weigh In

SXC has been the subject of several analyst reports. Weiss Ratings cut SunCoke Energy from a "hold (c-)" rating to a "sell (d)" rating in a research note on Tuesday, March 3rd. B. Riley Financial cut their price target on SunCoke Energy from $10.00 to $9.00 and set a "neutral" rating for the company in a research note on Wednesday, February 18th. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Reduce" and a consensus price target of $9.00.

Insiders Place Their Bets

In other SunCoke Energy news, CFO Mark W. Marinko acquired 10,000 shares of the company's stock in a transaction that occurred on Wednesday, February 25th. The shares were purchased at an average price of $5.84 per share, with a total value of $58,400.00. Following the completion of the acquisition, the chief financial officer directly owned 71,798 shares of the company's stock, valued at approximately $419,300.32. The trade was a 16.18% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, SVP Phillip Michael Hardesty acquired 12,500 shares of the company's stock in a transaction that occurred on Wednesday, February 25th. The shares were acquired at an average cost of $5.83 per share, for a total transaction of $72,875.00. Following the acquisition, the senior vice president directly owned 298,677 shares of the company's stock, valued at $1,741,286.91. This trade represents a 4.37% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 1.66% of the company's stock.

Institutional Trading of SunCoke Energy

Several large investors have recently bought and sold shares of SXC. Royal Bank of Canada grew its holdings in SunCoke Energy by 13.8% in the first quarter. Royal Bank of Canada now owns 35,957 shares of the energy company's stock valued at $330,000 after purchasing an additional 4,358 shares during the last quarter. AQR Capital Management LLC grew its holdings in SunCoke Energy by 86.3% in the first quarter. AQR Capital Management LLC now owns 366,537 shares of the energy company's stock valued at $3,372,000 after purchasing an additional 169,813 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in SunCoke Energy by 4.3% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 49,744 shares of the energy company's stock valued at $458,000 after purchasing an additional 2,064 shares during the last quarter. Dynamic Technology Lab Private Ltd grew its holdings in SunCoke Energy by 70.7% in the first quarter. Dynamic Technology Lab Private Ltd now owns 27,962 shares of the energy company's stock valued at $257,000 after purchasing an additional 11,580 shares during the last quarter. Finally, Hsbc Holdings PLC grew its holdings in SunCoke Energy by 126.3% in the second quarter. Hsbc Holdings PLC now owns 49,633 shares of the energy company's stock valued at $424,000 after purchasing an additional 27,696 shares during the last quarter. Institutional investors and hedge funds own 90.45% of the company's stock.

SunCoke Energy Price Performance

The company has a quick ratio of 1.11, a current ratio of 2.11 and a debt-to-equity ratio of 1.10. The company has a market cap of $528.83 million, a price-to-earnings ratio of -11.95 and a beta of 0.87. The company has a fifty day simple moving average of $6.26 and a two-hundred day simple moving average of $7.04.

SunCoke Energy Company Profile

SunCoke Energy, Inc is a leading independent producer of metallurgical coke and related products for the steel and foundry industries. The company specializes in manufacturing both blast furnace coke and foundry coke, offering high‐quality, low‐sulfur coal products that serve as essential inputs in steelmaking and metal casting processes. In addition to coke production, SunCoke provides comprehensive engineering, maintenance and environmental solutions tailored to the needs of integrated steel mills and foundries.

The company operates a network of coke production facilities across the United States, including plants in Indiana, Ohio, West Virginia and Louisiana.

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