Arch Resources (NYSE:ARCH) Trading Down 3% - Here's What Happened

Shares of Arch Resources, Inc. (NYSE:ARCH) experienced a 3% decline on Friday. The stock fell to a low of $139.26 before closing at $139.27. A total of 145,428 shares changed hands, marking a significant drop in trading volume, down 62% from the average of 384,917 shares. The previous close for Arch Resources was $143.63.

Arch Resources Alerts

Analyst Ratings

• Peabody Energy Positioned as a Dual-Function Energy and Steel Investment

Numerous brokerage firms recently updated their views on Arch Resources. B. Riley revised its price target for ARCH from $198.00 to $188.00 while maintaining a "buy" rating in a report on September 6th. Benchmark reiterated a "buy" rating, setting a $180.00 target for the stock in a report issued on November 18th. StockNews.com started coverage on Arch Resources, assigning a "hold" rating on December 13th. Furthermore, Jefferies Financial Group adjusted its rating for ARCH from "buy" to "hold" and increased its price target from $155.00 to $165.00 in a report published on November 13th. Currently, four analysts suggest holding the stock, while two recommend buying it; this results in a consensus rating of "Hold" with a target price averaging $173.60 according to MarketBeat.com.

ARCH's Stock Performance

• Teck Resources Reaches a 12-Year High Amid Deal Speculations

The market capitalization of Arch Resources stands at $2.51 billion, with a price-to-earnings ratio of 14.54 and a beta coefficient of 0.64. The company’s 50-day simple moving average is $156.50, and the 200-day average is $147.40.

Arch Resources recently shared its quarterly earnings on November 5th, reporting an earnings per share (EPS) loss of $0.34, falling short of the analysts' consensus estimate of $1.83 by $2.17. The company generated revenue of $617.90 million during the quarter, exceeding expectations of $587.71 million. Arch reported a return on equity of 13.22% and a net margin of 6.69%. However, revenue dropped by 17% compared to the same quarter last year, down from $3.91 EPS during the prior year. Analysts forecast that Arch Resources will report EPS of 5.86 for the current fiscal year.

Dividend Announcement

• Three Performers to Consider for Q4

The firm recently declared a quarterly dividend, which was paid on November 26th. Shareholders who were on record as of November 15th received a dividend of $0.25 per share, leading to an annual dividend of $1.00 and a yield of 0.72%. The payout ratio for Arch Resources stands at 10.50%.

Insider Activities

In recent company news, VP Deck Slone sold 253 shares of Arch Resources on October 14th at an average price of $144.75, totaling approximately $36,621.75. Following the sale, the vice president retains ownership of 29,120 shares valued at around $4,215,120, reflecting a 0.86% reduction in their stake. This transaction was reported to the Securities and Exchange Commission. Approximately 5.40% of the stock is held by company insiders.

Hedge Fund Activity

Several institutional investors and hedge funds have adjusted their holdings in Arch Resources recently. FMR LLC increased its stake by 159.5% during the third quarter, owning 657,654 shares worth $90,862,000 after acquiring an additional 404,249 shares. Holocene Advisors LP raised its ownership by 422.4% in Q3, holding 250,349 shares valued at $34,588,000 after acquiring 202,425 additional shares. Pacer Advisors Inc. grew its stake by 13.6% in Q2, now holding 1,001,093 shares worth $152,396,000 after buying an extra 119,505 shares. First Eagle Investment Management LLC purchased a new stake valued at $11,813,000 during Q2, while Point72 Asset Management L.P. invested approximately $9,828,000 in a new position during Q3. Institutional ownership comprises about 88.14% of Arch Resources stock.

About Arch Resources

Arch Resources, Inc. is engaged in producing and selling metallurgical products. The company's operations are divided into two segments: Metallurgical and Thermal. They manage active mines and control numerous coal land leases across states including Ohio, Maryland, Virginia, West Virginia, Wyoming, Kentucky, Montana, Pennsylvania, Colorado, and Illinois, along with smaller properties in Alabama, Indiana, Washington, Arkansas, California, Utah, and Texas.

Final Thoughts

This recent drop in stock price may make potential investors question whether to sell or hold. With a current rating of "Hold" among analysts, investors should consider the research reports before deciding on Arch Resources.

Arch, Resources, NYSE