Shares of Alpha Metallurgical Resources, Inc. (NYSE: AMR) experienced a notable surge of 5.7% during mid-day trading on Wednesday, reaching a peak of $199.00 before settling at $197.28. This uptick follows significant insider buying activities, particularly by two company directors.
On December 15, 2023, Kenneth S. Courtis, a director of the company, purchased 9,000 shares at an average price of $188.16 per share, amounting to a total investment of approximately $1.69 million. Post-transaction, his holdings increased to 816,537 shares, valued at around $153.6 million. This transaction represented a 1.11% increase in his position.
In a similar move, director Michael Gorzynski acquired 38,576 shares on the same day, paying an average of $188.50 per share for a total of approximately $7.27 million. Following this purchase, Gorzynski’s holdings rose to 644,025 shares, which are valued at about $121.4 million, reflecting a 6.37% increase in his stake.
Analyst Ratings and Market Performance
Despite the positive movement in stock price, analysts remain cautious. According to a report from Weiss Ratings, the firm reaffirmed a “sell (d)” rating on Alpha Metallurgical Resources. Current ratings include one “Buy,” one “Hold,” and one “Sell,” resulting in an average rating of “Hold” with a consensus target price of $160.50.
As of now, the company’s stock is trading above its 50-day simple moving average of $168.01 and its 200-day simple moving average of $146.02. The market capitalization stands at approximately $2.67 billion, with a price-to-earnings ratio of -58.36 and a beta of 0.91.
Alpha Metallurgical Resources last reported its quarterly earnings on November 6, 2023. The company posted a loss of ($0.42) earnings per share (EPS), which fell short of the consensus estimate of ($0.35) by $0.07. The firm reported revenues of $526.78 million, well below analyst expectations of $543.77 million, marking a significant year-over-year decline of 21.6%. Analysts project the company will report an EPS of 14.31 for the current year.
Institutional Activity and Investor Sentiment
Recent institutional trading has also influenced Alpha Metallurgical Resources’ stock dynamics. Several large investors have adjusted their stakes in the company. For instance, Financial Management Professionals Inc. entered a new position worth approximately $25,000 during the third quarter. Furthermore, Hantz Financial Services Inc. increased its holdings by 361.5%, now owning 240 shares valued at $39,000.
Other notable changes include a 146.0% increase in holdings by CWM LLC and a 48.9% rise by Farther Finance Advisors LLC. Institutional investors and hedge funds now control approximately 84.29% of the stock.
Company Overview
Founded in July 2021 as part of a spin-off from Contura Energy’s metallurgical coal business, Alpha Metallurgical Resources specializes in high-grade metallurgical coal production aimed primarily at the global steelmaking sector. Headquartered in Bristol, Virginia, the company operates multiple mining complexes across the central Appalachian and Illinois basins. Its focus on premium raw and semi-soft coking coal products has positioned it as a significant player in the industry.
As the market continues to react to insider trading and analyst evaluations, investors will be keenly observing Alpha Metallurgical Resources’ performance in the coming weeks.
