Peabody Energy Receives $37 Average Price Target from Analysts

Shares of Peabody Energy Corporation (NYSE:BTU) have garnered a consensus rating of “Hold” from six analysts covering the company, according to Marketbeat.com. Among these analysts, one has issued a sell rating, two have rated the stock as a hold, and three have given it a buy rating. The average price target for Peabody Energy over the next year is set at $37.00.

Recent assessments from various brokerages have contributed to this outlook. On January 12, 2024, Weiss Ratings upgraded Peabody from a “sell (d+)” to a “hold (c-)” rating. Following this, on January 23, Wall Street Zen also raised its rating from sell to hold. UBS Group increased its price target for Peabody from $27.00 to $29.00, maintaining a neutral stance as of December 12, 2023. Notably, B. Riley Financial raised its target price from $38.00 to $43.00 with a buy rating on February 4, while Jefferies Financial Group adjusted its target from $42.00 to $44.00, also issuing a buy rating on January 20.

In addition to analyst ratings, institutional trading activity has been significant. Vanguard Group Inc. increased its holdings in Peabody Energy by 8.5% during the fourth quarter, owning now 15,135,096 shares valued at approximately $449.5 million after acquiring an additional 1,191,438 shares. Similarly, State Street Corp raised its stake by 3.3%, now holding 9,532,978 shares, valued at $283.1 million. Other notable institutional investors include American Century Companies Inc., which lifted its stake by 8.7%, and Massachusetts Financial Services Co., which purchased a new stake valued at around $90.6 million. Overall, institutional investors own 87.44% of Peabody Energy’s stock.

Looking at the stock’s performance, shares of Peabody Energy opened at $33.53 on a recent trading day. Over the past year, the stock has fluctuated between a low of $9.61 and a high of $39.95. Currently, Peabody boasts a market capitalization of $4.08 billion, with a price-to-earnings ratio of -74.51. Its moving averages indicate a 50-day average of $33.55 and a 200-day average of $27.87. The company maintains a debt-to-equity ratio of 0.09 and a current ratio of 1.85.

Peabody Energy recently disclosed its earnings results on February 5, 2024. The firm reported earnings per share (EPS) of $0.09 for the quarter, missing the consensus estimate of $0.10 by $0.01. Despite revenue of $1.02 billion, which aligned with analysts’ expectations, the company experienced a 9.0% decline in quarterly revenue year-over-year. Last year, Peabody reported an EPS of $0.25. Analysts predict that Peabody Energy will achieve an EPS of 2.61 for the current fiscal year.

Furthermore, Peabody Energy announced a quarterly dividend of $0.075 per share, scheduled for payment on March 10, 2024. Shareholders of record as of February 23 will be eligible for this dividend, which translates to an annualized dividend of $0.30 and a yield of 0.9%. The ex-dividend date is also set for February 23, with a current payout ratio of -66.67%.

Founded in 1883, Peabody Energy Corporation has evolved from a regional mining operation into one of the world’s largest private-sector coal producers. The company is engaged primarily in the production and sale of metallurgical and thermal coal, serving utilities, steel mills, and industrial customers that depend on coal for power generation and steelmaking. Peabody’s diverse product portfolio includes high-energy thermal coal and low-volatile metallurgical coal, reflecting its broad market reach.