Walter J. Scheller, the Chief Executive Officer of Warrior Met Coal, Inc. (NYSE:HCC), recently sold shares in the company, according to a filing with the Securities and Exchange Commission. On November 7, Scheller sold 6,664 shares of common stock at a weighted average price of $75.02, totaling approximately $499,933. This transaction was executed under a Rule 10b5-1 trading plan, which Scheller adopted on November 8, 2023.
Following this sale, Scheller retains direct ownership of 333,821 shares of Warrior Met Coal. The sale price for these transactions ranged from $75.00 to $75.05 per share.
In other recent news, Warrior experienced a challenging third quarter, with a decrease in net income and sales volume due to weak global demand and a decline in steelmaking coal prices. The company reported a net income of $42 million, down from $85 million in the same quarter last year, and a 17.5% decrease in sales volume. Despite these hurdles, the company remains optimistic about the Blue Creek project, which produced 39,000 short tons and is expected to yield 200,000 short tons in the latter half of 2024.
Warrior's capital expenditures for the quarter amounted to $123 million, with $94 million allocated to the Blue Creek project. Despite the challenging market conditions, the company maintains its full-year 2024 guidance. Warrior anticipates a slight improvement in steelmaking coal prices in the fourth quarter of 2024 and is committed to managing costs and maintaining capital discipline.
Recent developments indicate that the company is in discussions for the new Blue Creek coal volume, with expectations leaning towards contracted sales rather than spot market sales. The company also plans to hire approximately 250 employees this year and an additional 100 for Blue Creek next year. Despite a tough third quarter, Warrior remains focused on the Blue Creek project and disciplined cost management.
InvestingPro Insights
Walter J. Scheller's recent sale of Warrior Met Coal, Inc. (NYSE:HCC) shares comes at a time when the company's stock is performing exceptionally well. According to InvestingPro data, HCC has seen a remarkable 66.29% price total return over the past year, and is currently trading near its 52-week high, with the price at 99.01% of its highest point.
This strong performance is reflected in several InvestingPro Tips. For instance, HCC has shown significant returns over various time frames, including the last week, month, and three months. The company's financial health appears robust, with InvestingPro noting that HCC holds more cash than debt on its balance sheet and its cash flows can sufficiently cover interest payments.
Despite the recent insider sale, HCC's fundamentals remain solid. The company boasts a P/E ratio of 10.32, suggesting it may still be undervalued relative to its earnings. Additionally, HCC has been profitable over the last twelve months, with analysts predicting continued profitability this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for HCC, providing deeper insights into the company's financial position and market performance.
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