Arch Coal (ARCH) Upgraded to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Arch Coal (NYSE:ARCH) from a hold rating to a buy rating in a research report sent to investors on Tuesday. Zacks Investment Research currently has $104.00 target price on the energy company’s stock.
According to Zacks, “Arch Coal, Inc. is a natural resource company. It produces metallurgical and thermal coal, used to manufacture steel and generate electricity. The company operates primarily in Alabama, Indiana, Washington, Arkansas, California, Utah and Texas. Arch Coal, Inc. is headquartered in St. Louis, Missouri. “
Several other research analysts have also issued reports on ARCH. B. Riley increased their price objective on Arch Coal from $96.00 to $106.00 and gave the stock a buy rating in a research note on Wednesday, September 19th. Seaport Global Securities reiterated a buy rating on shares of Arch Coal in a research note on Tuesday, July 31st. TheStreet upgraded Arch Coal from a c rating to a b- rating in a research note on Thursday, October 4th. ValuEngine lowered Arch Coal from a hold rating to a sell rating in a research note on Saturday, June 16th. Finally, Stifel Nicolaus started coverage on Arch Coal in a research note on Wednesday, June 27th. They set a hold rating and a $83.00 price objective for the company. Two research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. The stock presently has a consensus rating of Buy and a consensus target price of $103.57.
Arch Coal (NYSE:ARCH) last issued its earnings results on Tuesday, July 31st. The energy company reported $2.26 EPS for the quarter, topping the consensus estimate of $1.95 by $0.31. The firm had revenue of $592.30 million during the quarter, compared to analysts’ expectations of $525.37 million. Arch Coal had a return on equity of 39.79% and a net margin of 10.80%. Arch Coal’s quarterly revenue was up 7.8% compared to the same quarter last year. During the same period last year, the business earned $1.85 earnings per share. As a group, sell-side analysts predict that Arch Coal will post 10.8 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Friday, September 14th. Shareholders of record on Friday, August 31st were paid a dividend of $0.40 per share. The ex-dividend date was Thursday, August 30th. This represents a $1.60 annualized dividend and a yield of 1.75%. Arch Coal’s dividend payout ratio is currently 14.08%.
A number of institutional investors have recently added to or reduced their stakes in the business. Tower Research Capital LLC TRC acquired a new stake in shares of Arch Coal in the second quarter valued at $105,000. Trilogy Capital Inc. acquired a new stake in shares of Arch Coal in the second quarter valued at $173,000. Jane Street Group LLC acquired a new stake in shares of Arch Coal in the second quarter valued at $237,000. Sei Investments Co. increased its stake in shares of Arch Coal by 3,230.4% in the first quarter. Sei Investments Co. now owns 2,631 shares of the energy company’s stock valued at $242,000 after buying an additional 2,552 shares in the last quarter. Finally, Dynamic Technology Lab Private Ltd acquired a new stake in shares of Arch Coal in the first quarter valued at $245,000. Hedge funds and other institutional investors own 41.05% of the company’s stock.
About Arch Coal
Arch Coal, Inc produces and sells thermal and metallurgical coal from surface and underground mines. As of December 31, 2017, the company operated 9 active mines located in Wyoming, West Virginia, Kentucky, Virginia, Colorado, and Illinois. It also owned or controlled, primarily through long-term leases, approximately 28,292 acres of coal land in Ohio; 1,060 acres of coal land in Maryland; 10,108 acres of coal land in Virginia; 359,160 acres of coal land in West Virginia; 98,488 acres of coal land in Wyoming; 267,857 acres of coal land in Illinois; 34,446 acres of coal land in Kentucky; 9,840 acres of coal land in Montana; 21,802 acres of coal land in New Mexico; 358 acres of coal land in Pennsylvania; and 20,165 acres of coal land in Colorado, as well as owned or controlled through long-term leases smaller parcels of property in Alabama, Indiana, Washington, Arkansas, California, Utah, and Texas.
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