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 Click to see monthly returns in table format!

Lists

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

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!