Ramaco Resources (NASDAQ:METC) Shares Down 9.8% – Here’s Why

Ramaco Resources, Inc. (NASDAQ:METC)’s share price fell 9.8% during mid-day trading on Thursday . The stock traded as low as $14.25 and last traded at $14.29. 989,507 shares traded hands during trading, a decline of 66% from the average session volume of 2,910,306 shares. The stock had previously closed at $15.84.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the company. Zacks Research cut Ramaco Resources from a “hold” rating to a “strong sell” rating in a research note on Tuesday, February 3rd. Morgan Stanley started coverage on shares of Ramaco Resources in a research report on Friday, December 5th. They issued an “equal weight” rating and a $17.50 target price on the stock. Robert W. Baird reduced their price target on 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 raised Ramaco Resources from a “hold” rating to a “buy” rating and reduced their target price for the stock from $33.00 to $30.00 in a report on Tuesday, January 20th. Finally, The Goldman Sachs Group reduced their price objective on Ramaco Resources from $16.00 to $14.00 and set a “sell” rating for the company in a research report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, one has assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $31.93.

Ramaco Resources Trading Down 7.6%

The company has a market cap of $818.75 million, a PE ratio of -14.78 and a beta of 1.41. The stock’s 50 day moving average is $19.04 and its 200-day moving average is $24.00. The company has a quick ratio of 4.66, a current ratio of 5.46 and a debt-to-equity ratio of 0.95.

Ramaco Resources (NASDAQ:METC) last released its quarterly 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 return on equity of 12.01% and a negative net margin of 9.59%.The company had revenue of $108.72 million for the quarter, compared to analyst estimates of $143.48 million. During the same quarter in the prior year, the firm posted $0.02 EPS. Ramaco Resources’s quarterly revenue was down 25.1% compared to the same quarter last year. As a group, sell-side analysts anticipate that Ramaco Resources, Inc. will post 0.05 EPS for the current year.

Ramaco Resources declared that its board has approved a stock buyback program on Tuesday, December 23rd that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the energy company to reacquire up to 9.7% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Ramaco Resources

Hedge funds have recently added to or reduced their stakes in the stock. Quarry LP purchased a new position in shares of Ramaco Resources during the fourth quarter worth approximately $27,000. Caitong International Asset Management Co. Ltd grew its stake in Ramaco Resources by 14,250.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,722 shares of the energy company’s stock worth $31,000 after purchasing an additional 1,710 shares in the last quarter. Archer Investment Corp purchased a new position in Ramaco Resources during the 3rd quarter worth $33,000. Allworth Financial LP raised its position 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 valued at $34,000 after purchasing an additional 1,009 shares in the last quarter. Finally, MCF Advisors LLC purchased a new stake in shares of Ramaco Resources in the 3rd quarter worth $35,000. 74.49% of the stock is currently owned by 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.