Alpha Metallurgical Resources (NYSE:AMR) Stock Jumps 5.4% – Time to Buy?

Alpha Metallurgical Resources, Inc. (NYSE:AMR) shot up 5.4% on Wednesday. The company traded as high as $175.61 and last traded at $175.0430. Approximately 33,264 shares were traded during mid-day trading, a decline of 89% from the average daily volume of 289,811 shares. The stock had previously closed at $166.00.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. UBS Group started coverage on shares of Alpha Metallurgical Resources in a research note on Friday, July 10th. They set a “neutral” rating and a $165.00 price target on the stock. Weiss Ratings lowered Alpha Metallurgical Resources from a “sell (d)” rating to a “sell (e+)” rating in a research report on Tuesday, August 11th. Zacks Research cut Alpha Metallurgical Resources from a “hold” rating to a “strong sell” rating in a research note on Thursday, August 27th. Wall Street Zen cut Alpha Metallurgical Resources from a “hold” rating to a “sell” rating in a research note on Saturday, August 8th. Finally, Jefferies Financial Group restated a “hold” rating and set a $160.00 target price on shares of Alpha Metallurgical Resources in a research report on Tuesday, July 21st. Five analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average target price of $176.00.

Alpha Metallurgical Resources Stock Performance

The firm’s 50-day moving average price is $182.26 and its 200 day moving average price is $184.83. The company has a debt-to-equity ratio of 0.01, a quick ratio of 2.37 and a current ratio of 3.41. The company has a market cap of $2.21 billion, a price-to-earnings ratio of -48.55 and a beta of 0.68.

Alpha Metallurgical Resources (NYSE:AMR) last posted its quarterly earnings results on Friday, August 7th. The energy company reported ($0.96) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.97) by $0.01. Alpha Metallurgical Resources had a negative net margin of 2.23% and a negative return on equity of 2.99%. The business had revenue of $421.29 million during the quarter, compared to the consensus estimate of $521.61 million. During the same period in the previous year, the firm posted ($0.38) earnings per share. Alpha Metallurgical Resources’s revenue for the quarter was down 10.4% compared to the same quarter last year. On average, sell-side analysts anticipate that Alpha Metallurgical Resources, Inc. will post -2.4 EPS for the current year.

Insider Activity

In related news, Director Kenneth Courtis acquired 15,000 shares of the firm’s stock in a transaction that occurred on Thursday, August 20th. The stock was acquired at an average cost of $193.50 per share, with a total value of $2,902,500.00. Following the completion of the purchase, the director directly owned 1,015,394 shares in the company, valued at approximately $196,478,739. This trade represents a 1.50% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In the last 90 days, insiders acquired 35,000 shares of company stock valued at $7,388,400. 18.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Alpha Metallurgical Resources

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Tidal Investments LLC raised its position in shares of Alpha Metallurgical Resources by 10.2% during the second quarter. Tidal Investments LLC now owns 1,884 shares of the energy company’s stock worth $311,000 after purchasing an additional 174 shares during the period. WINTON GROUP Ltd grew its position in shares of Alpha Metallurgical Resources by 97.4% in the 2nd quarter. WINTON GROUP Ltd now owns 1,940 shares of the energy company’s stock valued at $320,000 after purchasing an additional 957 shares during the period. Squarepoint Ops LLC bought a new stake in Alpha Metallurgical Resources during the 2nd quarter worth approximately $3,728,000. Nykredit A S bought a new stake in Alpha Metallurgical Resources during the 2nd quarter worth approximately $25,000. Finally, NWF Advisory Services Inc. raised its holdings in Alpha Metallurgical Resources by 46.5% during the 2nd quarter. NWF Advisory Services Inc. now owns 57,925 shares of the energy company’s stock worth $9,554,000 after buying an additional 18,390 shares during the period. Institutional investors own 84.29% of the company’s stock.

About Alpha Metallurgical Resources

Alpha Metallurgical Resources, Inc is a mining company that produces and markets metallurgical coal, a key raw material used in steelmaking. Its products include premium and high-volatility metallurgical coal, as well as thermal coal, which is used primarily for electricity generation.

The company operates underground and surface mines and related processing facilities in Central Appalachia, principally in Virginia and West Virginia. Alpha sells its coal to domestic and international steel producers, coke manufacturers, and other industrial customers, serving markets in North America, Asia, Europe, and elsewhere.

Alpha Metallurgical Resources was formed from the restructuring of the former Alpha Natural Resources business and operated as Contura Energy before adopting its current name in 2021.