An interesting stock that came up in some of our conversations today is Peabody Energy Corporation (NYSE:BTU). At current price of $8.74, the shares have already lost -0.27 points (-2.94% lower) from its previous close of $9.01. Should you buy or avoid them? The stock sets an active trading volume day with a reported 729626 contracts so far this session. BTU shares had a relatively better volume day versus average trading capacity of 1.64 million shares, but with a 96.01 million float and a -9.81% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for BTU stock indicates that the average analyst price target is $14.33 per share. This means the stock has a potential increase of 63.96% from where the BTU share price has been trading recently.
During the recent trading session for Peabody Energy Corporation (NYSE:BTU), the company witnessed their stock drop by $-1.26 over a week and tumble down $-1.08 from the price 20 days ago. When compared to their established 52-week high of $37.37, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 06/02/19. The recent low of $8.5 stood for a -75.1% since 09/01/20, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for Peabody Energy Corporation, the two-week RSI stands at 37.37. This figure suggests that BTU stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current BTU readings is similarly very revealing as it has a stochastic reading of 21.08% at this stage. This figure means that BTU share price today is being overbought.
Technical chart claims that Peabody Energy Corporation (BTU) would settle between $9.28/share to $9.54/share level. However, if the stock price goes below the $8.62 mark, then the market for Peabody Energy Corporation becomes much weaker. If that happens, the stock price might even plunge as low as $8.23 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.41. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at B. Riley FBR lowered their recommendation on shares of BTU from Buy to Neutral in their opinion released on October 30. JP Morgan analysts have lowered their rating of Peabody Energy Corporation (NYSE:BTU) stock from Overweight to Neutral in a separate flash note issued to investors on August 19. Analysts at Jefferies lowered the stock to a Hold call from its previous Buy recommendation, in a research note that dated back to August 06.
BTU equity has an average rating of 2.62, with the figure leaning towards a bullish end. 6 analysts who tracked the company were contacted by Reuters. Amongst them, 3 rated the stock as a hold while the remaining 3 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 3 analysts rated Peabody Energy Corporation (NYSE:BTU) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, BTU stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/E ratio is 3.3 while for the average stock in the same group, the multiple is 3.5. Peabody Energy Corporation current P/B ratio of 0.3 means it is trading at a discount against its industry’s 0.6.
Peabody Energy Corporation (BTU)’s current-quarter revenues are projected to climb by nearly -23.2% to hit $1.07 billion, based on current consensus estimate. The firm’s full-year revenues are expected to expand by over -17.8% from $5.58 billion to a noteworthy $4.59 billion. At the other end of the current quarter income statement, Peabody Energy Corporation is expected to see its adjusted earnings surge by roughly -147.3% to hit $-1.04 per share. For the fiscal year, BTU’s earnings are projected to climb by roughly -97.5% to hit $0.11 per share.