Alpha Metallurgical Resources (NYSE:AMR) Stock Price Down 7.8% – Should You Sell?

Alpha Metallurgical Resources, Inc. (NYSE:AMR)’s share price dropped 7.8% during mid-day trading on Friday . The stock traded as low as $197.76 and last traded at $197.0050. Approximately 259,383 shares traded hands during trading, a decline of 8% from the average daily volume of 280,766 shares. The stock had previously closed at $213.72.

Wall Street Analyst Weigh In

AMR has been the subject of several research reports. Texas Capital lowered shares of Alpha Metallurgical Resources from a “strong-buy” rating to a “hold” rating in a research report on Thursday, January 29th. Zacks Research cut shares of Alpha Metallurgical Resources from a “hold” rating to a “strong sell” rating in a research note on Tuesday, May 5th. Benchmark reaffirmed a “hold” rating on shares of Alpha Metallurgical Resources in a research report on Monday, March 2nd. B. Riley Financial upped their price objective on shares of Alpha Metallurgical Resources from $203.00 to $207.00 and gave the company a “neutral” rating in a report on Thursday, March 5th. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Alpha Metallurgical Resources in a report on Friday, March 27th. Four equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Reduce” and an average target price of $195.33.

Alpha Metallurgical Resources Trading Down 7.0%

The stock’s fifty day moving average price is $195.11 and its two-hundred day moving average price is $193.44. The company has a current ratio of 3.67, a quick ratio of 2.81 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $2.53 billion, a P/E ratio of -65.65 and a beta of 0.60.

Alpha Metallurgical Resources (NYSE:AMR) last posted its quarterly earnings results on Friday, May 8th. The energy company reported ($0.86) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.86). The business had revenue of $447.32 million for the quarter, compared to analyst estimates of $535.15 million. Alpha Metallurgical Resources had a negative return on equity of 2.47% and a negative net margin of 1.83%.Alpha Metallurgical Resources’s revenue for the quarter was down 1.3% compared to the same quarter last year. During the same period last year, the company earned ($2.60) EPS. Equities research analysts forecast that Alpha Metallurgical Resources, Inc. will post 11.98 EPS for the current year.

Insider Activity

In related news, CFO Joshua Todd Munsey sold 2,523 shares of Alpha Metallurgical Resources stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $183.24, for a total value of $462,314.52. Following the sale, the chief financial officer owned 4,735 shares in the company, valued at $867,641.40. The trade was a 34.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Kenneth S. Courtis acquired 25,000 shares of the firm’s stock in a transaction on Monday, March 9th. The stock was bought at an average price of $176.23 per share, with a total value of $4,405,750.00. Following the completion of the acquisition, the director directly owned 841,537 shares in the company, valued at approximately $148,304,065.51. This represents a 3.06% increase in their position. The SEC filing for this purchase provides additional information. Over the last three months, insiders have acquired 73,000 shares of company stock valued at $13,368,910. Company insiders own 18.20% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Systrade AG purchased a new stake in Alpha Metallurgical Resources in the fourth quarter worth about $55,966,000. Crocodile Capital Partners GmbH bought a new stake in shares of Alpha Metallurgical Resources in the 4th quarter worth approximately $40,999,000. State Street Corp grew its stake in shares of Alpha Metallurgical Resources by 27.2% in the 2nd quarter. State Street Corp now owns 865,934 shares of the energy company’s stock worth $97,400,000 after buying an additional 185,281 shares during the last quarter. Goehring & Rozencwajg Associates LLC increased its position in Alpha Metallurgical Resources by 206.8% during the 1st quarter. Goehring & Rozencwajg Associates LLC now owns 242,039 shares of the energy company’s stock valued at $49,683,000 after buying an additional 163,144 shares in the last quarter. Finally, Contrarius Group Holdings Ltd purchased a new position in Alpha Metallurgical Resources during the third quarter valued at $12,146,000. 84.29% of the stock is currently owned by institutional investors.

About Alpha Metallurgical Resources

Alpha Metallurgical Resources, Inc (NYSE: AMR) is a leading pure-play producer of high-grade metallurgical coal, primarily serving the global steelmaking industry. Headquartered in Bristol, Virginia, the company operates multiple underground and surface mining complexes across the central Appalachian and Illinois basins. Its production portfolio focuses on premium raw and semi-soft coking coal products tailored to meet the specifications of steel producers worldwide.

Formed in July 2021 through the spin-out of Contura Energy’s metallurgical coal business, Alpha Metallurgical Resources has built a reputation for operational excellence and cost-efficient mining.