Alliance Resource Partners L.P. (ARLP) looking to reclaim success with recent performance

Alliance Resource Partners L.P. (NASDAQ: ARLP) stock jumped 0.88% on Thursday to $20.58 against a previous-day closing price of $20.40. With 0.64 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.45 million shares. During the session, the Thermal Coal company that operates in wider Energy sector, reached to the highest price of $20.86 whereas the lowest price it dropped to was $20.50. The 52-week range on ARLP shows that it touched its highest point at $26.10 and its lowest point at $17.05 during that stretch. It currently has a 1-year price target of $28.67. With its current market cap of 2.58 billion, ARLP has annualized dividend of $2.80 while the current yield stands at 13.61%. Beta for the stock currently stands at 1.38.

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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 ARLP was up-trending over the past week, with a rise of 5.92%, but this was up by 4.63% over a month. Three-month performance surged to 17.73% while six-month performance rose 12.89%. The stock lost -17.68% in the past year, while it has gained 1.28% so far this year. A look at the trailing 12-month EPS for ARLP yields 5.63 with Next year EPS estimates of 5.17. For the next quarter, that number is 1.28. This implies an EPS growth rate of 221.80% for this year and -3.80% for next year. EPS is expected to decline by -6.83% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 9.00%.

Float and Shares Shorts:

At present, 127.18 million ARLP shares are outstanding with a float of 89.98 million shares on hand for trading. On Aug 30, 2023, short shares totaled 1.48 million, which was 1.17% higher than short shares on Jul 30, 2023. In addition to Mr. Joseph W. Craft III as the firm’s Chairman, Pres & CEO of Alliance Resource Management GP, LLC, Mr. Thomas M. Wynne serves as its Sr. VP & COO of Alliance Resource Management GP, LLC.

Institutional Ownership:

Through their ownership of 22.99% of ARLP’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 15.30% of ARLP, in contrast to 100.91% held by mutual funds. Shares owned by individuals account for 1.98%. As the largest shareholder in ARLP with 2.24% of the stake, The Magnolia Group LLC holds 2,849,578 shares worth 2,849,578. A second-largest stockholder of ARLP, Bank of America, NA, holds 2,393,415 shares, controlling over 1.88% of the firm’s shares. Progeny 3, Inc. is the third largest shareholder in ARLP, holding 2,293,906 shares or 1.80% stake. With a 0.52% stake in ARLP, the Recurrent MLP & Infrastructure Fu is the largest stakeholder. A total of 666,080 shares are owned by the mutual fund manager. The Invesco Markets Plc – Morningstar, which owns about 0.52% of ARLP stock, is the second-largest Mutual Fund holder. It holds 658,226 shares valued at 13.11 million. Invesco SteelPath MLP Select 40 F holds 0.30% of the stake in ARLP, owning 386,938 shares worth 7.71 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, ARLP reported revenue of $616.50M and operating income of $175.27M. The EBITDA in the recently reported quarter was $177.53M and diluted EPS was $1.23.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ARLP since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With ARLP analysts setting a high price target of $32.00 and a low target of $26.00, the average target price over the next 12 months is $28.67. Based on these targets, ARLP could surge 55.49% to reach the target high and rise by 26.34% to reach the target low. Reaching the average price target will result in a growth of 39.31% 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.

Dividends & Yield:

In terms of dividends, ARLP has a current ratio of $2.8, which is $2.8 over the trailing 12-months, while a dividend of $1.42 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and ARLP currently yields $12.63. In the past year, ARLP’s dividend yield has been $12.63, but when looking at the stock over the past five years, its yield has been $14.57. Accordingly, ARLP has a current buyback yield of $0.05. This was $0.05 for the TTM, and it was $1.77 for the past five years.

Summary of Insider Activity:

Insiders traded ARLP stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 8 while that of sell transactions has risen to 7 over the past year. The total number of shares bought during that period was 547,216 while 981,050 shares were sold.

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