5 Cheap Coal Stocks to Buy Today

3. Peabody Energy Corporation (NYSE:BTU)

Number of Hedge Fund Holders: 27

Share Price (as of July 1): $21.04

Peabody Energy Corporation (NYSE:BTU) was founded in 1883, and currently ranks among the world’s top producers of coal. It provides metallurgical coal and thermal coal to steelmaking firms, power-generation utilities and other consumers in approximately 25 countries around the globe. Increasing coal prices mean Peabody shares continue to climb upwards; in the last 12 months they have gained 161.69%, to trade around $21.

Benchmark analyst Nathan Martin reiterated a ‘Buy’ rating on Peabody Energy Corporation (NYSE:BTU) shares in May and bumped the price target on them to $29 from $19. Strong coal demand will result in greater cash flow for Peabody, Martin noted, which will allow the firm to accelerate its goal of eliminating debt. Jefferies analyst Christopher LaFemina upgraded a number of mining firms in June on account of rising coal and iron ore prices, giving Peabody Energy Corporation (NYSE:BTU) a ‘Buy’ rating with a $36 price target.

A detailed examination of the 900+ hedge funds in the first-quarter database of Insider Monkey showed that 27 hedge funds were bullish on Peabody Energy Corporation (NYSE:BTU) shares, with the largest position being held by Elliott Management at $634 million in value. In contrast, 28 hedge funds were long BTU in the previous quarter.