Billionaire Ken Griffin Ups Stake in Arch Coal Inc (ACI) to Over 5%

Ken Griffin and his fund, Citadel Advisors, have boosted their stake in Arch Coal Inc (NYSE:ACI), a new filing with the Security and Exchange Commission shows. The passive stake held by Citadel contains almost 11.6 million shares, which have an aggregate value of $47.6 million (current price of the stock), and are equal to 5.4% of the common stock. Previously, Citadel disclosed ownership of around 160,100 shares of Arch Coal, and  another 875,000 shares under options.

CITADEL INVESTMENT GROUP

The stock of Arch Coal Inc (NYSE:ACI) is a volatile one, sporting a beta of around 1.9. It has been down by over 7% since the beginning of the year, and declined by almost 20% over the past year. For the previous year, Arch Coal posted a net loss of $1.08 per diluted share, which was significantly lower than the loss of $0.36 per share posted a year ago, although it was above the consensus estimate of -$1.25. For the current year, the company is expected to deliver a net loss of -$1.49 per share, and revenue of around $3.2 billion. Overall, on average, analysts appreciate the stock as a ‘Hold’, with the average target price of around $4.6 per share.

However, Arch Coal Inc (NYSE:ACI) is refocusing its strategy in order to increase its potential. The company divested its Canyon Fuel subsidiary for over $420 million in cash last year, and aside from the gain, it anticipates to save a significant amount of cash during the next couple of years, according to a statement.

In addition, recently Arch Coal Inc (NYSE:ACI) sold its Hazard subsidiary to Blackhawk Mining, LLC for $26.3 million in cash, the company stated in a press release. The complex includes mining site and infrastructure and 38 million tons of thermal coal reserves. Through the deal, Arch Coal managed to divest over $15 million of reclamation liabilities, and received the possibility for future royalty payments of up to $35 million.

At the same time, a look at the whole list of shareholders of Arch Coal Inc (NYSE:ACI), shows that aside from Ken Griffin, several other major hedge funds are bullish on the company. Israel Englander‘s Millennium Management has initiated a long stake in the company and currently holds around 1.1 million shares. Moreover, Millennium boosted the number of shares held under “call” by some 3,000%, also to some 1.1 million shares.

Disclosure: none

Recommended Reading:

Billionaire Ken Griffin’s New Stock Moves

Ken Griffin and Citadel Are Bullish on Veeva Systems Inc (VEEV)

Citadel Advisors’ Two Latest Moves: ChannelAdvisor Corp (ECOM) and KB Home (KBH)

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!