5 Cheap Coal Stocks to Buy Now

4. Ramaco Resources, Inc. (NASDAQ:METC)

Number of Hedge Fund Holders: 22 

Share Price as of August 17: $10.80     

Ramaco Resources, Inc. (NASDAQ:METC) produces and sells metallurgical coal. On August 8, the company announced that it would be purchasing Maben Coal from Appleton Coal for $30 million. The former owns 33 million tons of mineable coal reserves on more than 28,000 leased acres in West Virginia. The firm expects to mine 1.5 million tons of coal contained in the Sewell seam as well as another 31 million tons of coal contained in the Pocahontas 3 and Pocahontas 4 seams in the near future.  

On August 10, B. Riley analyst Lucas Pipes maintained a Buy rating on Ramaco Resources, Inc. (NASDAQ:METC) stock and lowered the price target to $24 from $31, identifying higher capital spending and cost assumptions as some of the reasons behind the target drop. 

At the end of the first quarter of 2022, 22 hedge funds in the database of Insider Monkey held stakes worth $38 million in Ramaco Resources, Inc. (NASDAQ:METC), compared to 14 in the previous quarter worth $13 million.

Among the hedge funds being tracked by Insider Monkey, London-based investment firm Marshall Wace LLP is a leading shareholder in Ramaco Resources, Inc. (NASDAQ:METC), with 485,907 shares worth more than $7.6 million.

In its Q1 2022 investor letter, Horos Asset Management, an asset management firm, highlighted a few stocks and Ramaco Resources, Inc. (NASDAQ:METC) was one of them. Here is what the fund said:

“This quarter we sold our entire stakes in Ramaco Resources, Inc. (NASDAQ:METC). The reason is purely due to their lower upside potential after a very strong performance. In the case of Ramaco Resources, Inc. (NASDAQ:METC), as we mentioned in the previous quarterly letter, its high volatility allowed us to realize high returns on two different occasions (we exited the position and then re-entered it) in a short period of time, demonstrating the importance of rebalancing positions in our portfolio. Meanwhile, although with somewhat different dynamics, our investments in the metallurgical coal companies Ramaco Resources has  strong returns and we sold them during the period.”