On June 21, 2023, Yorktown Energy Partners IX, L.P. (Trades, Portfolio), a prominent investment firm, significantly reduced its holdings in Ramaco Resources Inc (METC, Financial), a leading player in the steel industry. This article aims to provide an in-depth analysis of this transaction, the profiles of the guru and the company involved, and the potential implications for both parties.
Details of the Transaction
Yorktown Energy Partners IX, L.P. (Trades, Portfolio) sold 4,487,552 shares of Ramaco Resources Inc on June 21, 2023, at a trade price of $9.56 per share. This transaction resulted in an 80% reduction in the guru's holdings in the company, leaving them with 1,121,888 shares. The transaction had a significant impact on the guru's portfolio, reducing its position by 76.17%. Despite this, Ramaco Resources Inc still constitutes 79.89% of the guru's portfolio, and the guru holds 11.99% of the company's total shares.
Profile of Yorktown Energy Partners IX, L.P. (Trades, Portfolio)
Yorktown Energy Partners IX, L.P. (Trades, Portfolio), based at 410 Park Avenue, New York, NY, is a renowned investment firm with a focus on the Basic Materials and Energy sectors. The firm currently holds three stocks in its portfolio, with a total equity of $56 million. Its top holdings include Southwestern Energy Co (SWN, Financial), Ramaco Resources Inc (METC, Financial), and Sitio Royalties Corp (STR, Financial).
Overview of Ramaco Resources Inc
Founded in 2017, Ramaco Resources Inc is a US-based company that specializes in the operation and development of high-quality, low-cost metallurgical coal in southern West Virginia, southwestern Virginia, and southwestern Pennsylvania. The company, which operates as a single segment, has a market capitalization of $514.405 million. Despite a 5.02% decrease in its stock price since the transaction, the company's stock is significantly undervalued according to the GF Valuation, with a GF Value of $12.99 and a Price to GF Value ratio of 0.70.
Analysis of Ramaco Resources Inc's Stock Performance
With a GF Score of 80, Ramaco Resources Inc is likely to have an average performance. The company's balance sheet, profitability, and growth ranks are 7, 6, and 6 respectively, while its GF Value rank is 10. Despite a momentum rank of 5, the company's F Score is 4, indicating potential financial instability. The company's cash to debt ratio is 0.25, ranking 376th in the industry.
Context within the Steel Industry
Operating within the steel industry, Ramaco Resources Inc has an interest coverage of 16.16, ranking 153rd in the industry. The company's ROE and ROA are 33.81% and 18.52% respectively, with respective ranks of 50 and 39. Despite a 0.00% growth in operating margin, the company has seen a 75.50% growth in gross margin over the past three years.
Conclusion
In conclusion, Yorktown Energy Partners IX, L.P. (Trades, Portfolio)'s decision to reduce its stake in Ramaco Resources Inc has had a significant impact on both the guru's portfolio and the company's stock. Despite this, the company remains a major part of the guru's portfolio and continues to show potential for growth within the steel industry. As of July 10, 2023, all data and rankings are accurate and are based on the provided relative data.
