61.8 F
New York
Wednesday, October 21, 2020

Peabody Energy Corporation (NYSE:BTU) on the Path to Ruin

Must read

Magnolia Oil & Gas Corporation (NYSE:MGY) is Gaining Momentum on Earnings Catalyst

Magnolia Oil & Gas Corporation (MGY) shares are trading at lower $4.93 and the avg recommendation for the stock is Moderate Buy, while the...

Coherus BioSciences Inc. (NASDAQ:CHRS) Finding Zero Support

Coherus BioSciences Inc. (CHRS) shares are trading at lower $17.08 and the avg recommendation for the stock is Strong Buy, while the current analyst...

Live Nation Entertainment Inc. (NYSE:LYV) on the Path to Ruin

Live Nation Entertainment Inc. (LYV) shares are trading at lower $53.97 and the avg recommendation for the stock is Moderate Buy, while the current...

The Unprecedented Rise of United Natural Foods Inc. (NYSE:UNFI)

United Natural Foods Inc. (UNFI) shares are trading at lower $19.37 and the avg recommendation for the stock is Moderate Buy, while the current...

Peabody Energy Corporation (BTU) shares are trading at lower $1.66 and the avg recommendation for the stock is Hold, while the current analyst price target stands at $2.92.

To add more color to this target, the company’s high over the last year is $16.75 and the low is $1.71. Over the last 52 weeks, BTU is down -89.43% while the S&P 500 is up 16.45%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, BTU reported a profit of $70.4 million. Peabody Energy Corporation also saw revenues increase to $626.7 million. In addition, BTU has free cash flow of -$153.2 million as of 06-2020. The company’s EBITDA came in at -$1.42 billion which compares well with its peers.

BTU booked profit margins of -55.40%, its Return on Equity (ROE) is -91.30%, and its Return on Assets is -33.40%. All told, it is clear that, BTU needs to be on your watchlist.

Find out when BTU reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.

Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. BTU has a short ratio of 3.92 and outstanding shares of 97.90M.

Company Outlook

BTU has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.81 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -20.96. Peabody Energy Corporation BTU also noted assets of $4.95 billion at the end of the last quarter. Investors should also keep an eye on sector updates as BTU has historically followed its peers on positive news.

All told, Peabody Energy Corporation BTU has strung together solid data and demonstrated underlying fundamentals. At its current valuation, BTU represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Peabody Energy Corporation BTU is now commanding a market cap of 163.96M and a float of 96.57M. BTU is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of BTU stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in BTU, either long or short, and we have not been compensated for this article.

Latest article

The Forecast Just Changed on Marathon Patent Group Inc. (NASDAQ:MARA)

Marathon Patent Group Inc. (MARA) shares are trading at higher $2.46. To add more color to this target, the company’s high over the last...

International Business Machines Corporation (NYSE:IBM) on the Path to Ruin

International Business Machines Corporation (IBM) shares are trading at lower $117.37 and the avg recommendation for the stock is Moderate Buy, while the current...

Is Now the Time to Invest in Parsley Energy Inc. (NYSE:PE)?

Parsley Energy Inc. (PE) shares are trading at higher $10.62 and the avg recommendation for the stock is Strong Buy, while the current analyst...

Iterum Therapeutics plc (NASDAQ:ITRM) Stock is Soaring, Here is Why

Iterum Therapeutics plc (ITRM) shares are trading at higher $1.15 and the avg recommendation for the stock is Hold. To add more color to...

Weidai Ltd. (NYSE:WEI) is Holding Steady

Weidai Ltd. (WEI) shares are trading at higher $5.13 and the avg recommendation for the stock is Moderate Sell. To add more color to...