AMR stock plunges to 52-week low, hitting 125.57 USD

Published 18/03/2025, 14:42
AMR stock plunges to 52-week low, hitting 125.57 USD

Alpha Metallurgical Resources Inc. (NYSE:AMR) shares tumbled to a 52-week low this week, with stock prices dropping to 125.57 USD. According to InvestingPro data, the company maintains strong fundamentals with a "GREAT" financial health score, trading at an attractive P/E ratio of 8.8x and showing a robust free cash flow yield of 23%. The significant downturn reflects a stark contrast from the company’s performance over the past year, which has seen the stock undergo a precipitous decline of 60.14%. Investors have been closely monitoring AMR’s trajectory as the company grapples with market volatility and industry-specific challenges. The 52-week low serves as a critical indicator of the current bearish sentiment surrounding the stock, prompting stakeholders to reassess their positions in the face of ongoing fluctuations in the energy sector. Technical indicators from InvestingPro suggest the stock is currently in oversold territory, and analysis indicates the shares are trading below their Fair Value. Discover 16 additional exclusive insights and comprehensive analysis in the Pro Research Report, available with an InvestingPro subscription.

In other recent news, Alpha Metallurgical Resources reported disappointing fourth-quarter earnings for 2024, with earnings per share (EPS) at -$0.16, significantly missing the forecasted $1.70. Revenue also fell short, coming in at $617.35 million against the expected $699.90 million. Despite this, the company’s adjusted EBITDA increased to $53 million, surpassing Benchmark’s high-end estimate of $47 million, due to lower expenses. However, the company lowered its full-year 2025 metallurgical shipment guidance by 500,000 tons and raised its cost per ton estimate, citing global steel market weakness and severe winter weather as contributing factors.

Alpha Metallurgical Resources is focusing on cash management amid these challenging market conditions and is not considering resuming shareholder returns until recovery signs emerge. The company is open to mergers and acquisitions but has not identified suitable opportunities. Benchmark analyst Nathan P. Martin reiterated a Hold rating on the company’s stock, reflecting ongoing market challenges. The company maintains a strong cash position, with $481.6 million in unrestricted cash as of December 31, 2024, and continues to prioritize operational efficiency.

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