Peabody Energy Corporation (NYSE: BTU) – Suitable For Long Term Buy?


    T. Rowe Price Associates, Inc. (I.. recently announced the acquisition of new stake in Peabody Energy Corporation (NYSE:BTU). The institutional investor has increased its shareholding in the Energy company by 58.11% to 9.16 million shares with purchase of 3.36 million shares. This fresh investment now brings its stake to 9.37% valued currently at $28.56 million. In addition, Susquehanna Investment Group LLC raised its holdings by 47500.0 to 6.51 million shares. And BlackRock Fund Advisors has lifted its position by 3.39% or 0.15 million shares – to 4.52 million shares.

    With over 2.08 million Peabody Energy Corporation (BTU) shares trading Friday and a closing price of $2.57 on the day, the dollar volume was approximately $5.33 million. The shares have shown a positive weekly performance of 7.53% and its price on 08/28/20 gained nearly 7.53%. Currently, there are 97.90M common shares owned by the public and among those 96.57M 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: 7 analysts who have offered their price forecasts for BTU have a consensus price objective of $3.17. The analysts have set the share’s price value over the next 12 months at a high of $4.00 and a low of $3.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Peabody Energy Corporation stock is 3.00 for the next 12 months. The average price target is 19.69% above its last price level and an upside to the estimated low will see the stock gain 14.33% over that period. But an upside of 35.75% will see the stock hit the forecast high price target while mean target price for the stock is $3.00.

    Insiders at the company have transacted a total of 0 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 0 of these insider trades were purchases, accounting for 0 shares. Insider sales of the common stock occurred on 0 occasions, with total insider shares sold totaling 0 shares.

    The top 3 mutual fund holders in Peabody Energy Corporation are T Rowe Price Mid Cap Value Fund, Vanguard Total Stock Market Index, and DFA US Small Cap Value Portfolio. T Rowe Price Mid Cap Value Fund owns 5.9 million shares of the company’s stock, all valued at over $18.42 million. The company bought an additional 5.9 million shares recently to bring their total holdings to about 6.04% of the shares outstanding. DFA US Small Cap Value Portfolio bought 0.12 million shares to bring its total holdings to over 1.87 million shares at a value of $5.84 million. DFA US Small Cap Value Portfolio now owns shares totaling to 1.92% of the shares outstanding.

    Shares of Peabody Energy Corporation (NYSE: BTU) opened at $2.43, up $0.04 from a prior closing price of $2.39. However, the script later closed the day at $2.57, up 7.53%. The company’s stock has a 5-day price change of 7.53% and -15.46% over the past three months. BTU shares are trading -71.82% year to date (YTD), with the 12-month market performance down to -85.70% lower. It has a 12-month low price of $2.27 and touched a high of $19.29 over the same period. Currently, 2.08 million shares have been traded, compared to an average intraday trading volume of 2.10 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -4.37%, -10.41%, and -50.70% respectively.

    Institutional ownership of Peabody Energy Corporation (NYSE: BTU) shares accounts for 98.00% of the company’s 97.90M shares outstanding. Mutual fund holders own 29.44%, while other institutional holders and individual stakeholders account for 69.28% and 28.39% respectively.

    It has a market capitalization of $233.69M and a beta (3y monthly) value of 1.37. The earnings-per-share (ttm) stands at -$20.96. Price movements for the stock have been influenced by the stock’s volatility, which stands at 7.31% over the week and 8.14% over the month.

    Analysts forecast that Peabody Energy Corporation (BTU) will achieve an EPS of -$0.89 for the current quarter, -$0.53 for the next quarter and -$2.65 for 2021. The lowest estimate earnings-per-share for the quarter is -$1.07 while analysts give the company a high EPS estimate of -$0.62. Comparatively, EPS for the current quarter was -$0.81 a year ago. Earnings per share for the fiscal year are expected to decrease by -147.40%, and 86.20% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 7 brokerage firm advisors rate Peabody Energy Corporation (BTU) as a “Hold” at a consensus score of 3.00. Specifically, 0 Wall Street analysts polled rate the stock as a buy, while 7 of the 7 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the BTU, a number of firms have released research notes about the stock. Vertical Research stated their Hold rating for the stock in a research note on August 07, 2020, with the firm’s price target at $3. Clarksons Platou coverage for the Peabody Energy Corporation (BTU) stock in a research note released on May 07, 2020 offered a Neutral rating with a price target of. Deutsche Bank was of a view on March 20, 2020 that the stock is Hold, while The Benchmark Company gave the stock Hold rating on February 07, 2020, issuing a price target of. B. Riley FBR on their part issued Neutral rating on October 30, 2019.


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