Warrior Met Coal Inc. (NYSE:HCC): Stock That Needs Special Handling


Contrarius Investment Management … recently announced the acquisition of new stake in Warrior Met Coal Inc. (NYSE:HCC). The institutional investor has increased its shareholding in the Basic Materials company by 615.19% to 2.24 million shares with purchase of 1.93 million shares. This fresh investment now brings its stake to 4.37% valued currently at $31.51 million. In addition, Third Avenue Management LLC raised its holdings by 56386.0 to 1.85 million shares. And Dimensional Fund Advisors LP has lifted its position by 2.86% or 49648.0 shares – to 1.79 million shares.

With over 0.81 million Warrior Met Coal Inc. (HCC) shares trading Monday and a closing price of $15.18 on the day, the dollar volume was approximately $12.33 million. The shares have shown a positive weekly performance of 2.64% and its price on 07/06/20 gained nearly 1.74%. Currently, there are 51.11M common shares owned by the public and among those 50.95M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 9 analysts who have offered their price forecasts for HCC have a consensus price objective of $20.75. The analysts have set the share’s price value over the next 12 months at a high of $26.00 and a low of $13.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Warrior Met Coal Inc. stock is 2.20 for the next 12 months. The average price target is 26.84% above its last price level and an upside to the estimated low will see the stock lose -16.77% over that period. But an upside of 41.62% will see the stock hit the forecast high price target while mean target price for the stock is $20.00.

Insiders at the company have transacted a total of 62 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 35 of these insider trades were purchases, accounting for 131,668 shares. Insider sales of the common stock occurred on 27 occasions, with total insider shares sold totaling 50,221 shares.

The top 3 mutual fund holders in Warrior Met Coal Inc. are iShares Core S&P Small Cap ETF, FFI Strategies Portfolio, and Vanguard Total Stock Market Index. iShares Core S&P Small Cap ETF owns 2.47 million shares of the company’s stock, all valued at over $34.78 million. The company has a total holdings of about 4.83% of the shares outstanding. FFI Strategies Portfolio bought 85397.0 shares to see its total holdings expand to 1.5 million shares valued at over $21.13 million and representing 2.93% of the shares outstanding. Vanguard Total Stock Market Index has total holdings to over 1.46 million shares at a value of $20.59 million. Vanguard Total Stock Market Index now owns shares totaling to 2.86% of the shares outstanding.

Shares of Warrior Met Coal Inc. (NYSE: HCC) opened at $15.27, up $0.35 from a prior closing price of $14.92. However, the script later closed the day at $15.18, up 1.74%. The company’s stock has a 5-day price change of 2.64% and 43.75% over the past three months. HCC shares are trading -28.16% year to date (YTD), with the 12-month market performance down to -40.49% lower. It has a 12-month low price of $9.46 and touched a high of $26.50 over the same period. Currently, 0.81 million shares have been traded, compared to an average intraday trading volume of 946.67K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -3.80%, 6.26%, and -13.10% respectively.

Institutional ownership of Warrior Met Coal Inc. (NYSE: HCC) shares is 51.11M shares outstanding. Mutual fund holders own 49.88%, while other institutional holders and individual stakeholders account for 54.70% and 29.91% respectively.

It has a market capitalization of $756.42M . The stock’s trailing 12-month PE ratio is 3.68, while the earnings-per-share (ttm) stands at $4.13. The company has a Quick Ratio of 3.40 with the debt-to-equity ratio at 0.56. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.84% over the week and 6.59% over the month.

Analysts forecast that Warrior Met Coal Inc. (HCC) will achieve an EPS of -$0.14 for the current quarter, -$0.05 for the next quarter and $2.73 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.41 while analysts give the company a high EPS estimate of $0.47. Comparatively, EPS for the current quarter was $2.16 a year ago. Earnings per share for the fiscal year are expected to decrease by -55.30%, and 124.75% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 9 brokerage firm advisors rate Warrior Met Coal Inc. (HCC) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 3 of the 9 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the HCC, a number of firms have released research notes about the stock. B. Riley FBR stated their Buy rating for the stock in a research note on March 03, 2020, with the firm’s price target at $33. The Benchmark Company coverage for the Warrior Met Coal Inc. (HCC) stock in a research note released on February 21, 2020 offered a Hold rating with a price target of . Jefferies was of a view on August 06, 2019 that the stock is Hold, while Deutsche Bank gave the stock Buy rating on April 01, 2019 $35. Jefferies on their part issued Buy rating on March 13, 2019.


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