Billionaire Jim Simons’ RenTech’s 10 Small-Cap Stock Picks with Huge Upside Potential

4. Alpha Metallurgical Resources Inc (NYSE:AMR)

Renaissance Technologies’ Stake Value: $108,107,826

Upside Potential as of May 1: 48.74%

Market Capitalization as of May 1: $1.535 Billion

Number of Hedge Fund Holders: 33

Alpha Metallurgical Resources Inc (NYSE:AMR) is a US-based mining company that mainly produces metallurgical coal (a raw material used to make steel). The company operates coal mines in Central Appalachia and supplies its products to steel producers both in the US and around the world.

In Q4 2024, Alpha Metallurgical Resources Inc (NYSE:AMR) reported a net loss of $2.1 million ($0.16 per diluted share) for the quarter. This is a huge decline from the $176.0 million net income reported in Q4 2023. Adjusted EBITDA came in at $53.2 million, down from $266.3 million in the same period last year. On the other hand, operating cash flow decreased to $56.3 million compared to $199.4 million in Q4 2023. The management reduced its 2025 volume guidance for metallurgical coal shipments to 14.5-15.5 million tons, the reason being weak metallurgical coal market conditions.

Despite the challenging financial posture, several institutional investors have strengthened their stakes in Alpha Metallurgical Resources Inc (NYSE:AMR). Russell Investments Group Ltd. boosted its position by 86.5% in Q4 2024, acquiring an additional 4,280 shares to bring its total ownership to 9,228 shares. Barclays PLC grew its holdings by 308.2% in Q3, adding 14,089 shares for a total position of 18,646 shares. Notably, 33 hedge funds and institutional investors, including RenTech, now own 84.29% of the company’s stock. Analysts hold a Moderate Buy opinion on the stock, and their 12-month average price target points to a 48.74% upside from current levels as of May 1.