Peabody Energy (NYSE:BTU) Shares Gap Down on Disappointing Earnings

Peabody Energy Co. (NYSE:BTU)’s share price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $17.98, but opened at $17.22. Peabody Energy shares last traded at $17.01, with a volume of 984,346 shares.

The coal producer reported $0.28 earnings per share for the quarter, missing the consensus estimate of $0.53 by ($0.25). Peabody Energy had a return on equity of 14.74% and a net margin of 12.24%.

Peabody Energy Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 11th. Shareholders of record on Wednesday, February 19th will be issued a $0.075 dividend. This represents a $0.30 annualized dividend and a dividend yield of 1.76%. Peabody Energy’s payout ratio is 7.94%.

Wall Street Analyst Weigh In

Several analysts have issued reports on BTU shares. Benchmark boosted their target price on shares of Peabody Energy from $28.00 to $30.00 and gave the company a “buy” rating in a research note on Friday, November 1st. BMO Capital Markets raised Peabody Energy from a “market perform” rating to an “outperform” rating and set a $26.00 price objective for the company in a research note on Monday, December 16th. Finally, Jefferies Financial Group decreased their price objective on Peabody Energy from $30.00 to $26.00 and set a “buy” rating for the company in a research report on Monday, January 6th.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of BTU. Smartleaf Asset Management LLC raised its holdings in shares of Peabody Energy by 167.2% during the 4th quarter. Smartleaf Asset Management LLC now owns 1,189 shares of the coal producer’s stock valued at $25,000 after purchasing an additional 744 shares in the last quarter. Financial Management Professionals Inc. bought a new position in Peabody Energy during the third quarter valued at about $36,000. Byrne Asset Management LLC raised its holdings in Peabody Energy by 63.3% during the fourth quarter. Byrne Asset Management LLC now owns 1,755 shares of the coal producer’s stock valued at $37,000 after buying an additional 680 shares in the last quarter. Harbor Capital Advisors Inc. acquired a new stake in shares of Peabody Energy in the third quarter worth about $43,000. Finally, GAMMA Investing LLC boosted its stake in shares of Peabody Energy by 292.6% during the 3rd quarter. GAMMA Investing LLC now owns 2,057 shares of the coal producer’s stock worth $55,000 after acquiring an additional 1,533 shares in the last quarter. 87.44% of the stock is owned by institutional investors and hedge funds.

Peabody Energy Stock Performance

The stock has a fifty day moving average price of $20.32 and a 200 day moving average price of $22.89. The company has a current ratio of 2.32, a quick ratio of 1.75 and a debt-to-equity ratio of 0.09. The firm has a market cap of $2.07 billion, a price-to-earnings ratio of 4.50 and a beta of 0.95.

About Peabody Energy

Peabody Energy Corporation engages in coal mining business in the United States, Japan, Taiwan, Australia, India, Brazil, Belgium, Chile, France, Indonesia, China, Vietnam, South Korea, Germany, and internationally. The company operates through Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S.