Ramaco Resources (NASDAQ:METC) Shares Down 11.8% – Here’s Why

Shares of Ramaco Resources, Inc. (NASDAQ:METC) dropped 11.8% during mid-day trading on Thursday . The stock traded as low as $17.38 and last traded at $17.4270. Approximately 740,886 shares changed hands during trading, a decline of 78% from the average daily volume of 3,442,495 shares. The stock had previously closed at $19.75.

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. Morgan Stanley started coverage on shares of Ramaco Resources in a research note on Friday, December 5th. They set an “equal weight” rating and a $17.50 price target on the stock. Jefferies Financial Group upgraded 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. Northland Securities set a $44.00 target price on shares of Ramaco Resources in a report on Wednesday, October 29th. Benchmark raised their price target on Ramaco Resources from $24.00 to $38.00 and gave the stock a “buy” rating in a research report on Wednesday, October 29th. Finally, Zacks Research cut shares of Ramaco Resources from a “hold” rating to a “strong sell” rating in a research report on Tuesday. Two equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, one has assigned a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $34.07.

Ramaco Resources Trading Down 11.3%

The company has a debt-to-equity ratio of 0.24, a current ratio of 2.97 and a quick ratio of 2.24. The firm has a market capitalization of $1.16 billion, a price-to-earnings ratio of -26.04 and a beta of 1.44. The firm’s 50-day simple moving average is $18.79 and its 200 day simple moving average is $24.80.

Ramaco Resources declared that its Board of Directors has initiated a share repurchase plan on Tuesday, December 23rd that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the energy company to purchase up to 9.7% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Ramaco Resources

Several institutional investors have recently made changes to their positions in METC. Vanguard Group Inc. grew its position in Ramaco Resources by 40.0% in the 3rd quarter. Vanguard Group Inc. now owns 2,335,257 shares of the energy company’s stock valued at $77,507,000 after purchasing an additional 667,199 shares during the period. American Century Companies Inc. increased its stake in Ramaco Resources by 8.4% in the 2nd quarter. American Century Companies Inc. now owns 1,028,186 shares of the energy company’s stock valued at $13,510,000 after buying an additional 79,858 shares during the last quarter. Millennium Management LLC bought a new stake in Ramaco Resources during the third quarter worth $23,451,000. Geode Capital Management LLC raised its stake in shares of Ramaco Resources by 25.0% during the 2nd quarter. Geode Capital Management LLC now owns 687,343 shares of the energy company’s stock worth $9,033,000 after purchasing an additional 137,635 shares during the period. Finally, Bamco Inc. NY bought a new position in Ramaco Resources during the third quarter valued at about $20,679,000. Institutional investors and hedge funds 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.