5 Cheap Coal Stocks to Buy Today

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

Number of Hedge Fund Holders: 22

Share Price (as of July 1): $12.81

Ramaco Resources, Inc. (NASDAQ:METC) is next up on our list of cheap coal stocks to buy. Based in Kentucky, the firm is a provider of metallurgical coal to blast furnace steel mills, coke plants, and metallurgical coal consumers in the United States and internationally. The company’s portfolio includes the Berwind, Elk Creek, RAM Mine, and Knox Creek mines in the states of Virginia, West Virginia, and Pennsylvania.

Money managers have been decidedly bullish on Ramaco Resources, Inc. (NASDAQ:METC), which has posted gains of 126.73% in the last 12 months and looks set to continue its red-hot trajectory. 22 hedge funds held $38.7 million worth of positions in Ramaco Resources, Inc. (NASDAQ:METC) at the end of the first quarter, compared to 14 funds in the previous quarter with $13.2 million worth of stakes.

Israel Englander’s Millennium Management stood as Ramaco Resources, Inc.’s (NASDAQ:METC) biggest shareholder in the first quarter, with approximately 524,000 shares valued at $8.27 million. This was a massive 504% jump in stake over the previous quarter.

On June 7, Ramaco Resources, Inc. (NASDAQ:METC) was upgraded to ‘Buy’ from ‘Hold’ by Jefferies analyst Christopher LaFemina, who revised the price target to $25, up from $16. He upgraded his forecasts for iron ore and coal prices, noting that the mining sector is currently undervalued and well-positioned to post outperformance as energy demand picks up again in China.

Horos Asset Management had this to say about Ramaco Resources, Inc. (NASDAQ:METC) in its Q1 2022 investor letter:

“This quarter we sold our entire stakes in Ramaco Resources. The reason is purely due to their lower upside potential after a very strong performance. In the case of Ramaco Resources, 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.”