With a current price of $1.98, Peabody Energy Corporation [NYSE:BTU] is active in the Thermal Coal industry, with a 5-day price swing of -6.36%.
For the year, the stock is trading -77.41%, while, as a point of reference, the S&P 500 is trading 0.5% YTD. Other data to note on this name is a price per sales number of 0.05.
The Bears are coming
Holding a Market Cap of $185.48 million, Peabody Energy Corporation has seen a trading range over the last year of $2.01-$16.75.
For the last five days, BTU is down from its last closing price. The average shares trading hands each day is 2.18M, with average 10-day volume coming in at 3.18 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for BTU. When we apply the Elder Force Index to Peabody Energy Corporation, we are seeing an Elder Force Indicator number of -81425.28.
The company’s enterprise value has gone from $950.56M to $942.88M quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, BTU made a profit of 70.4 million. Peabody Energy Corporation also saw quarter revenue growth year over year of -16.69%. In addition, the company has operating cash flow of $247.3 million.
Looking at popular technical indicators, the company’s 5-day moving average is 2.09 compared to the 50-day moving average of 2.7637. So, traders might want to tread carefully if they are going to bid.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. BTU currently holds a 9-day RSI of 27.47%, while 100-day RSI stands at 41.69%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. BTU’s 9-day MACD is -0.15 and the company’s 100-day MACD stands at -0.95.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 1.06% by insiders and 103.28% by institutions. Regarding institutional holdings, Elliott Investment Management L.P. owns 29.57%, while the second top holder, Price (T.Rowe) Associates Inc, currently owns 9.36%.
Over the last six months, insiders have sold 525 with the most recent transaction from Meintjes Charles F, EVP & COO, with a sell at price 3.01 per share.
Overall, the recommended rating for BTU is Hold. Currently, the company has 5 analysts watching the stock, and the average quarterly earnings estimate is -0.9. Quarterly revenue estimates are averaging 703.8M with the high estimate reaching 753.1M and the low at 617M.
To review, the current 1-year target estimate is sitting at 2.92, while the current price 1.98. Based on this, we expect the stock to rise considering the aforementioned fundamentals.