Peabody Energy (NYSE:BTU) Shares Gap Down on Disappointing Earnings

Peabody Energy Co. (NYSE:BTU - Get Free Report)'s share price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $17.98, but opened at $17.22. Peabody Energy shares last traded at $17.01, with a volume of 984,346 shares changing hands.

The coal producer reported $0.28 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.53 by ($0.25). Peabody Energy had a return on equity of 10.33% and a net margin of 8.75%.

Peabody Energy Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 11th. Investors of record on Wednesday, February 19th will be given a dividend of $0.075 per share. The ex-dividend date of this dividend is Wednesday, February 19th. This represents a $0.30 annualized dividend and a dividend yield of 1.79%. Peabody Energy's dividend payout ratio (DPR) is presently 11.11%.

Analysts Set New Price Targets

BTU has been the subject of several recent analyst reports. Benchmark dropped their price objective on Peabody Energy from $30.00 to $26.00 and set a "buy" rating for the company in a research note on Friday. Jefferies Financial Group dropped their target price on shares of Peabody Energy from $30.00 to $26.00 and set a "buy" rating for the company in a research report on Monday, January 6th. Finally, BMO Capital Markets raised shares of Peabody Energy from a "market perform" rating to an "outperform" rating and set a $26.00 price target for the company in a report on Monday, December 16th.

Hedge Funds Weigh In On Peabody Energy

Institutional investors and hedge funds have recently bought and sold shares of the business. Franklin Resources Inc. raised its holdings in shares of Peabody Energy by 79.2% in the third quarter. Franklin Resources Inc. now owns 175,424 shares of the coal producer's stock valued at $4,693,000 after buying an additional 77,525 shares during the last quarter. Zacks Investment Management acquired a new stake in Peabody Energy in the 3rd quarter valued at about $1,714,000. Geode Capital Management LLC raised its stake in shares of Peabody Energy by 8.0% in the third quarter. Geode Capital Management LLC now owns 2,918,536 shares of the coal producer's stock worth $77,473,000 after acquiring an additional 216,887 shares during the last quarter. State Street Corp lifted its position in shares of Peabody Energy by 7.6% during the third quarter. State Street Corp now owns 7,631,707 shares of the coal producer's stock worth $202,546,000 after purchasing an additional 540,219 shares in the last quarter. Finally, The Manufacturers Life Insurance Company grew its stake in shares of Peabody Energy by 167.4% during the third quarter. The Manufacturers Life Insurance Company now owns 200,073 shares of the coal producer's stock valued at $5,310,000 after purchasing an additional 125,244 shares during the last quarter. Institutional investors and hedge funds own 87.44% of the company's stock.

Peabody Energy Trading Up 5.2 %

The company has a quick ratio of 1.75, a current ratio of 2.15 and a debt-to-equity ratio of 0.27. The business's fifty day moving average is $20.01 and its two-hundred day moving average is $22.81. The firm has a market cap of $2.04 billion, a price-to-earnings ratio of 6.20 and a beta of 0.95.

Peabody Energy Company Profile

Peabody Energy Corporation engages in coal mining business in the United States, Japan, Taiwan, Australia, India, Brazil, Belgium, Chile, France, Indonesia, China, Vietnam, South Korea, Germany, and internationally. The company operates through Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S.