Investors in cash trouble should check out Peabody Energy Corporation (BTU)

Peabody Energy Corporation (NYSE: BTU) stock fell -0.36% on Tuesday to $27.88 against a previous-day closing price of $27.98. With 2.82 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.42 million shares. During the session, the Thermal Coal company that operates in wider Energy sector, reached to the highest price of $28.14 whereas the lowest price it dropped to was $27.25. The 52-week range on BTU shows that it touched its highest point at $33.29 and its lowest point at $9.83 during that stretch. It currently has a 1-year price target of $33.60. Beta for the stock currently stands at 1.06.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BTU was down-trending over the past week, with a drop of -3.19%, but this was down by -3.40% over a month. Three-month performance surged to 16.80% while six-month performance rose 26.67%. The stock gained 159.35% in the past year, while it has gained 5.53% so far this year. A look at the trailing 12-month EPS for BTU yields 7.80 with Next year EPS estimates of 6.44. For the next quarter, that number is 2.08. This implies an EPS growth rate of 115.80% for this year and 4.77% for next year.

Float and Shares Shorts:

At present, 144.10 million BTU shares are outstanding with a float of 142.42 million shares on hand for trading. On Oct 13, 2022, short shares totaled 16.03 million, which was 11.14% higher than short shares on Sep 14, 2022. In addition to Mr. James C. Grech as the firm’s Pres, CEO & Director, Mr. Mark A. Spurbeck serves as its Exec. VP & CFO.


Institutional Ownership:

Through their ownership of 91.63% of BTU’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.74% of BTU, in contrast to 37.99% held by mutual funds. Shares owned by individuals account for 34.98%. As the largest shareholder in BTU with 16.00% of the stake, Elliott Investment Management LP holds 23,025,000 shares worth 23,025,000. A second-largest stockholder of BTU, The Vanguard Group, Inc., holds 11,154,993 shares, controlling over 7.75% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in BTU, holding 11,003,728 shares or 7.65% stake. With a 2.85% stake in BTU, the Fidelity Global Innovators Invest is the largest stakeholder. A total of 4,100,908 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.43% of BTU stock, is the second-largest Mutual Fund holder. It holds 3,500,743 shares valued at 92.49 million. SPDR S&P Metals & Mining ETF holds 2.25% of the stake in BTU, owning 3,235,134 shares worth 85.47 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BTU since 5 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BTU analysts setting a high price target of $39.00 and a low target of $31.00, the average target price over the next 12 months is $33.60. Based on these targets, BTU could surge 39.89% to reach the target high and rise by 11.19% to reach the target low. Reaching the average price target will result in a growth of 20.52% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BTU will report FY 2022 earnings on 02/08/2024. Analysts have provided yearly estimates in a range of $6.54 being high and $6.10 being low. For BTU, this leads to a yearly average estimate of $6.34. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Peabody Energy Corporation surprised analysts by $0.55 when it reported $2.34 EPS against a consensus estimate of $1.79. The surprise factor in the prior quarter was -$0.62. Based on analyst estimates, the high estimate for the next quarter is $2.54 and the low estimate is $1.82. The average estimate for the next quarter is thus $2.08.

Summary of Insider Activity:

Insiders traded BTU stock several times over the past three months with 5 Buys and 21 Sells. In these transactions, 96,114 shares were bought while 2,923,595 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 32 over the past year. The total number of shares bought during that period was 114,393 while 2,988,886 shares were sold.

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