Warrior Met Coal (NYSE:HCC) Stock Falls 5.2% – Should You Sell?

Warrior Met Coal (NYSE:HCC) shares dropped 5.2% on Monday. The company traded as low as $84.76 and last traded at $85.3080. 365,773 shares changed hands during mid-day trading, a decline of 55% from the average session volume of 806,677 shares. The stock had previously closed at $89.94.

Analyst Ratings Changes

HCC has been the subject of a number of research analyst reports. Zacks Research cut shares of Warrior Met Coal from a “strong-buy” rating to a “hold” rating in a research report on Friday, August 7th. Weiss Ratings upgraded shares of Warrior Met Coal from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, August 11th. UBS Group increased their price objective on shares of Warrior Met Coal from $98.00 to $102.00 and gave the company a “buy” rating in a research report on Thursday, October 8th. Wall Street Zen upgraded shares of Warrior Met Coal from a “buy” rating to a “strong-buy” rating in a research note on Saturday, October 10th. Finally, Royal Bank Of Canada raised their target price on shares of Warrior Met Coal from $90.00 to $110.00 and gave the stock a “sector perform” rating in a research note on Wednesday, September 16th. Four analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Warrior Met Coal has a consensus rating of “Moderate Buy” and an average target price of $104.50.

Warrior Met Coal Stock Performance

The stock has a market cap of $4.43 billion, a P/E ratio of 20.19 and a beta of 0.72. The stock has a 50 day simple moving average of $96.35 and a 200 day simple moving average of $90.82. The company has a current ratio of 3.93, a quick ratio of 2.79 and a debt-to-equity ratio of 0.10.

Warrior Met Coal (NYSE:HCC) last issued its earnings results on Wednesday, August 5th. The company reported $1.65 EPS for the quarter, topping the consensus estimate of $1.40 by $0.25. The firm had revenue of $509.69 million during the quarter, compared to the consensus estimate of $488.46 million. Warrior Met Coal had a return on equity of 10.02% and a net margin of 13.05%. The business’s quarterly revenue was up 71.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.11 earnings per share. On average, equities analysts expect that Warrior Met Coal will post 6.71 earnings per share for the current year.

Warrior Met Coal Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, August 17th. Investors of record on Monday, August 10th were issued a dividend of $0.08 per share. The ex-dividend date of this dividend was Monday, August 10th. This represents a $0.32 annualized dividend and a dividend yield of 0.4%. Warrior Met Coal’s dividend payout ratio (DPR) is 7.69%.

Insider Buying and Selling at Warrior Met Coal

In other Warrior Met Coal news, CEO Walter Scheller sold 50,000 shares of the company’s stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $110.00, for a total value of $5,500,000.00. Following the completion of the transaction, the chief executive officer owned 267,793 shares of the company’s stock, valued at $29,457,230. This represents a 15.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Stephen D. Williams sold 4,800 shares of the stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $104.23, for a total value of $500,304.00. Following the completion of the transaction, the director owned 30,303 shares of the company’s stock, valued at $3,158,481.69. This represents a 13.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 104,800 shares of company stock worth $11,250,304. 2.10% of the stock is currently owned by company insiders.

Institutional Trading of Warrior Met Coal

Hedge funds and other institutional investors have recently made changes to their positions in the company. Quantbot Technologies LP bought a new position in shares of Warrior Met Coal during the second quarter worth about $31,000. Meeder Asset Management Inc. acquired a new position in shares of Warrior Met Coal in the second quarter worth approximately $37,000. Allworth Financial LP acquired a new position in shares of Warrior Met Coal in the second quarter worth approximately $39,000. Nykredit A S acquired a new position in shares of Warrior Met Coal in the second quarter worth approximately $50,000. Finally, Global Retirement Partners LLC acquired a new position in shares of Warrior Met Coal in the second quarter worth approximately $68,000. 92.28% of the stock is currently owned by institutional investors.

About Warrior Met Coal

Warrior Met Coal, Inc is a mining company focused on the production and export of high-quality metallurgical coal, also known as met coal. Its products are used primarily by steelmakers in the blast-furnace steelmaking process, where metallurgical coal is converted into coke to support the production of iron and steel.

The company operates underground coal mines and related processing facilities in the Brookwood coal-producing region of Alabama. Warrior Met Coal primarily produces premium hard coking coal and sells its products to customers in international steel markets, serving regions that include Europe, Asia, and the Americas.

Warrior Met Coal was formed from the assets of Walter Energy after Walter Energy’s bankruptcy and began operating as an independent public company in 2016.