Ramaco Resources (NASDAQ:METC) Trading Down 7.7% – Time to Sell?

Ramaco Resources, Inc. (NASDAQ:METC) dropped 7.7% on Tuesday . The company traded as low as $20.68 and last traded at $20.3470. Approximately 1,567,975 shares changed hands during mid-day trading, a decline of 30% from the average daily volume of 2,231,533 shares. The stock had previously closed at $22.05.

Analyst Ratings Changes

METC has been the topic of a number of recent analyst reports. Zacks Research raised Ramaco Resources from a “strong sell” rating to a “hold” rating in a report on Monday, December 29th. Northland Capmk upgraded Ramaco Resources to a “strong-buy” rating in a report on Wednesday, October 8th. Weiss Ratings reissued a “sell (d+)” rating on shares of Ramaco Resources in a research note on Monday, December 29th. The Goldman Sachs Group initiated coverage on shares of Ramaco Resources in a research report on Wednesday, November 19th. They set a “sell” rating and a $16.00 price target on the stock. Finally, Robert W. Baird set a $43.00 target price on Ramaco Resources in a research note on Wednesday, October 29th. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Ramaco Resources presently has an average rating of “Moderate Buy” and a consensus price target of $34.50.

Ramaco Resources Price Performance

The company has a quick ratio of 2.24, a current ratio of 2.97 and a debt-to-equity ratio of 0.24. The stock has a market cap of $1.34 billion, a price-to-earnings ratio of -30.36 and a beta of 1.44. The company has a 50 day simple moving average of $18.47 and a 200-day simple moving average of $24.12.

Ramaco Resources (NASDAQ:METC) last released its earnings results on Monday, October 27th. The energy company reported ($0.25) earnings per share for the quarter, beating the consensus estimate of ($0.30) by $0.05. The firm had revenue of $104.87 million during the quarter, compared to analyst estimates of $137.63 million. Ramaco Resources had a negative net margin of 5.67% and a negative return on equity of 8.26%. The firm’s revenue for the quarter was down 27.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.03) earnings per share. As a group, research analysts anticipate that Ramaco Resources, Inc. will post 0.05 EPS for the current fiscal year.

Ramaco Resources announced that its board has authorized a share buyback plan on Tuesday, December 23rd that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the energy company to reacquire up to 9.7% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s management believes its stock is undervalued.

Institutional Trading of Ramaco Resources

Several hedge funds have recently added to or reduced their stakes in the business. Millennium Management LLC acquired a new position in Ramaco Resources during the 3rd quarter valued at about $23,451,000. Vanguard Group Inc. boosted its stake in Ramaco Resources by 40.0% during the third quarter. Vanguard Group Inc. now owns 2,335,257 shares of the energy company’s stock valued at $77,507,000 after buying an additional 667,199 shares in the last quarter. Bamco Inc. NY acquired a new position in Ramaco Resources during the third quarter worth about $20,679,000. Merewether Investment Management LP bought a new position in shares of Ramaco Resources during the 3rd quarter valued at about $18,633,000. Finally, Potrero Capital Research LLC acquired a new stake in Ramaco Resources during the third quarter valued at approximately $11,575,000. Institutional investors own 74.49% of the company’s stock.

Ramaco Resources Company Profile

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.