Warrior Met Coal (NYSE:HCC) Stock Price Up 3.5% - Should You Buy?

Key Points

• Warrior Met Coal's stock price increased by 3.5%, reaching $64.55, but trading volume was significantly lower at approximately 55,741 shares compared to an average of 968,379 shares.
• Recent analyst reports have resulted in ratings changes, including a downgrade by Wall Street Zen to "sell" and by B. Riley to a lower target price of $74.00, while two analysts still rate it as a "buy."
• The company reported earnings per share of $0.11, surpassing consensus estimates, but its revenue fell 25% year-over-year, indicating potential challenges ahead.

Warrior Met Coal (NYSE:HCC - Get Free Report)'s share price rose 3.5% during trading on Thursday . The company traded as high as $64.55 and last traded at $64.55. Approximately 55,741 shares changed hands during mid-day trading, a decline of 94% from the average daily volume of 968,379 shares. The stock had previously closed at $62.37.

Analyst Ratings Changes

HCC has been the topic of several analyst reports. Wall Street Zen downgraded Warrior Met Coal from a "hold" rating to a "sell" rating in a research report on Saturday, September 13th. B. Riley dropped their target price on Warrior Met Coal from $76.00 to $74.00 and set a "buy" rating on the stock in a report on Tuesday, July 22nd. UBS Group upped their target price on Warrior Met Coal from $50.00 to $60.00 and gave the company a "neutral" rating in a report on Wednesday, August 20th. BMO Capital Markets set a $55.00 price target on Warrior Met Coal and gave the stock a "market perform" rating in a research note on Thursday, August 7th. Finally, Zacks Research upgraded shares of Warrior Met Coal from a "strong sell" rating to a "hold" rating in a report on Monday. Two analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, Warrior Met Coal currently has a consensus rating of "Hold" and a consensus price target of $63.50.

Warrior Met Coal Stock Performance

The company has a debt-to-equity ratio of 0.12, a current ratio of 4.59 and a quick ratio of 3.44. The stock has a 50 day simple moving average of $58.34 and a two-hundred day simple moving average of $51.01. The company has a market capitalization of $3.41 billion, a price-to-earnings ratio of 84.01 and a beta of 0.74.

Warrior Met Coal (NYSE:HCC - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported $0.11 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.28) by $0.39. The firm had revenue of $297.52 million during the quarter, compared to analysts' expectations of $285.63 million. Warrior Met Coal had a net margin of 3.30% and a return on equity of 2.26%. The firm's revenue for the quarter was down 25.0% on a year-over-year basis. During the same period in the prior year, the company posted $1.35 earnings per share. As a group, analysts anticipate that Warrior Met Coal will post 4.86 earnings per share for the current year.

Warrior Met Coal Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Friday, August 8th were issued a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date was Friday, August 8th. Warrior Met Coal's dividend payout ratio (DPR) is 41.56%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. NWF Advisory Services Inc. raised its position in shares of Warrior Met Coal by 821.7% in the 2nd quarter. NWF Advisory Services Inc. now owns 77,650 shares of the company's stock valued at $3,559,000 after purchasing an additional 69,225 shares in the last quarter. Osaic Holdings Inc. raised its stake in Warrior Met Coal by 2,261.2% during the second quarter. Osaic Holdings Inc. now owns 41,935 shares of the company's stock valued at $1,922,000 after buying an additional 40,159 shares in the last quarter. Squarepoint Ops LLC acquired a new stake in shares of Warrior Met Coal during the 2nd quarter valued at approximately $530,000. L1 Capital Pty Ltd raised its position in shares of Warrior Met Coal by 175.8% during the 2nd quarter. L1 Capital Pty Ltd now owns 1,981,045 shares of the company's stock valued at $90,791,000 after acquiring an additional 1,262,736 shares in the last quarter. Finally, Public Sector Pension Investment Board raised its stake in Warrior Met Coal by 7.6% during the second quarter. Public Sector Pension Investment Board now owns 179,227 shares of the company's stock worth $8,214,000 after acquiring an additional 12,598 shares during the period. Institutional investors and hedge funds own 92.28% of the company's stock.

About Warrior Met Coal

Warrior Met Coal, Inc produces and exports non-thermal metallurgical coal for the steel industry. It operates two underground mines located in Alabama. The company sells its metallurgical coal to a customer base of blast furnace steel producers located primarily in Europe, South America, and Asia. It also sells natural gas, which is extracted as a byproduct from coal production.

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