Warrior Met Coal Inc. (NYSE: HCC)’s stock price has soared by 5.88 in relation to previous closing price of 44.55. Nevertheless, the company has seen a gain of 13.25% in its stock price over the last five trading days. Seeking Alpha reported 2023-08-28 that My old position, Arch Resources, has underperformed peers in the met coal industry year-to-date. The new “floor” for met coal index prices is expected to be around $200-250/ton, which makes all major US producers very intriguing investments. I favor Warrior at this juncture due to their low-cost production and growth opportunity from Blue Creek.
Is It Worth Investing in Warrior Met Coal Inc. (NYSE: HCC) Right Now?
Warrior Met Coal Inc. (NYSE: HCC) has a price-to-earnings ratio of 5.29x that is above its average ratio. Additionally, the 36-month beta value for HCC is 1.13. There are mixed opinions on the stock, with 2 analysts rating it as a “buy,” 0 rating it as “overweight,” 4 rating it as “hold,” and 0 rating it as “sell.”
The average price predicted by analysts for HCC is $45.80, which is -$1.5 below the current price. The public float for HCC is 51.21M and currently, short sellers hold a 5.82% ratio of that float. The average trading volume of HCC on September 15, 2023 was 633.09K shares.
HCC’s Market Performance
HCC’s stock has seen a 13.25% increase for the week, with a 20.52% rise in the past month and a 35.55% gain in the past quarter. The volatility ratio for the week is 3.30%, and the volatility levels for the past 30 days are at 2.65% for Warrior Met Coal Inc. The simple moving average for the past 20 days is 15.94% for HCC’s stock, with a 26.61% simple moving average for the past 200 days.
Analysts’ Opinion of HCC
Many brokerage firms have already submitted their reports for HCC stocks, with B. Riley Securities repeating the rating for HCC by listing it as a “Buy.” The predicted price for HCC in the upcoming period, according to B. Riley Securities is $50 based on the research report published on September 23, 2022 of the previous year 2022.
HCC Trading at 16.05% from the 50-Day Moving Average
After a stumble in the market that brought HCC to its low price for the period of the last 52 weeks, the company was able to rebound, for now settling with 4.31% of gains for the given period.
Volatility was left at 2.65%, however, over the last 30 days, the volatility rate increased by 3.30%, as shares surge +18.85% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +18.55% upper at present.
During the last 5 trading sessions, HCC rose by +13.25%, which changed the moving average for the period of 200-days by +32.91% in comparison to the 20-day moving average, which settled at $41.06. In addition, Warrior Met Coal Inc. saw 39.50% in overturn over a single year, with a tendency to cut further gains.
Reports are indicating that there were more than several insider trading activities at HCC starting from Chopin Brian M, who sale 2,816 shares at the price of $45.00 back on Sep 13. After this action, Chopin Brian M now owns 11,187 shares of Warrior Met Coal Inc., valued at $126,720 using the latest closing price.
Stock Fundamentals for HCC
Current profitability levels for the company are sitting at:
- +48.14 for the present operating margin
- +50.95 for the gross margin
The net margin for Warrior Met Coal Inc. stands at +36.88. The total capital return value is set at 54.94, while invested capital returns managed to touch 42.76. Equity return is now at value 30.70, with 22.10 for asset returns.
Based on Warrior Met Coal Inc. (HCC), the company’s capital structure generated 23.19 points at debt to equity in total, while total debt to capital is 18.82. Total debt to assets is 16.55, with long-term debt to equity ratio resting at 21.53. Finally, the long-term debt to capital ratio is 17.47.
When we switch over and look at the enterprise to sales, we see a ratio of 1.12, with the company’s debt to enterprise value settled at 0.26. The receivables turnover for the company is 12.18 and the total asset turnover is 0.97. The liquidity ratio also appears to be rather interesting for investors as it stands at 7.54.
In conclusion, Warrior Met Coal Inc. (HCC) has seen better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.