Alliance Resource Partners' senior VP sells $1.06 million in stock

Published 13/12/2024, 22:32
Alliance Resource Partners' senior VP sells $1.06 million in stock

Timothy J. Whelan, the Senior Vice President of Sales at Alliance Resource (NASDAQ:ARLP) Partners LP (NASDAQ:ARLP), has recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Whelan sold a total of 40,000 common units in two separate transactions. This insider activity comes as ARLP demonstrates strong financial health, with an InvestingPro analysis showing the stock has delivered an impressive 59.35% return over the past year.

The first transaction took place on December 11, where Whelan sold 10,000 units at a price of $26.25 per unit. The second transaction occurred on December 13, involving the sale of 30,000 units at $26.69 per unit. The combined total of these transactions amounts to $1,063,200. According to InvestingPro data, the stock currently trades at an attractive P/E ratio of 7.62 and offers a substantial dividend yield of 10.68%.

Following these sales, Whelan retains ownership of 117,946 common units in Alliance Resource Partners. The transactions were executed directly, reflecting a reduction in his direct ownership stake in the company. InvestingPro analysis indicates the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which covers this and 1,400+ other US equities.

In other recent news, Alliance Resource Partners faced mixed results in its third-quarter financial performance. The company reported an adjusted EBITDA of $170 million, falling short of Benchmark's estimate of $198 million and the market consensus of $203 million. This was affected by shipment deferrals, a decrease in export sales, and challenging conditions at its Appalachia mining operations. Despite these hurdles, Alliance Resource Partners is finalizing additional contracts for approximately 21.7 million tons from 2025 to 2030, which are expected to elevate its 2025 commitments to historical levels.

Meanwhile, the company reported an increase in coal sales shipments by 6.7% to 8.4 million tons, but experienced a decrease in coal production by 7.2% to 7.8 million tons and a 2.1% drop in the average coal sales price per ton compared to the previous year. The company's net income for Q3 2024 was reported at $86.3 million, with consolidated revenue at $613.6 million.

In light of these developments, Benchmark analyst maintained a Buy rating on the stock and raised the stock price target for Alliance Resource Partners to $27 from $26. The company is also undertaking major capital projects expected to complete in early 2025, aiming to lower operating costs and extend mine life. These are the recent developments for Alliance Resource Partners.

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