On March 24, 2025, Yorktown Energy Partners XI, L.P. (Trades, Portfolio) made a significant move by reducing its holdings in Ramaco Resources Inc (METC, Financial). The firm decreased its position by 3,783,272 shares, leaving it with a total of 1,052,404 shares in the company. This transaction reflects a strategic decision by Yorktown Energy Partners XI, L.P. (Trades, Portfolio) to adjust its investment portfolio, impacting both its own holdings and the market perception of Ramaco Resources Inc.
Profile of Yorktown Energy Partners XI, L.P. (Trades, Portfolio)
Yorktown Energy Partners XI, L.P. (Trades, Portfolio) is a prominent investment firm located at 410 Park Avenue, 19th Floor, New York, NY 10022. The firm specializes in the energy and basic materials sectors, with a focus on identifying and investing in high-potential companies within these industries. Its top holdings include Riley Exploration Permian Inc (REPX, Financial), Ramaco Resources Inc (METC, Financial), and Ramaco Resources Inc (METCB, Financial). With a total equity of $117 million, Yorktown Energy Partners XI, L.P. (Trades, Portfolio) is a significant player in the investment landscape, particularly in the energy sector.
About Ramaco Resources Inc
Ramaco Resources Inc is a U.S.-based metallurgical coal company with operations in southern West Virginia and southwestern Virginia. The company focuses on high-quality metallurgical coal reserves and resources, serving North American blast furnace steel mills and international consumers. With a market capitalization of $474.781 million, Ramaco Resources Inc is a key player in the metallurgical coal industry. The current stock price is $8.97, and it is considered modestly undervalued with a GF Value of $11.88, indicating potential for future growth.
Financial Performance of Ramaco Resources Inc
Ramaco Resources Inc has a Price-to-Earnings (P/E) ratio of 59.80, reflecting its current valuation in the market. The year-to-date price change is -16.25%, indicating a decline in stock value over the year. The company's GF Score is 89/100, suggesting good outperformance potential. Both the Balance Sheet and Profitability Ranks are at 7/10, indicating a solid financial foundation and profitability.
Impact of the Transaction
The reduction in shares by Yorktown Energy Partners XI, L.P. (Trades, Portfolio) had a trade impact of -28.3 on its portfolio. Despite this reduction, Ramaco Resources Inc still constitutes 10.98% of Yorktown's holdings, while Yorktown holds 1.95% of Ramaco Resources Inc's total shares. This strategic decision reflects a rebalancing of Yorktown's investment portfolio, potentially to optimize returns or manage risk.
Market and Growth Analysis
Ramaco Resources Inc has demonstrated a 3-year revenue growth of 32.60% and an EBITDA growth of 5.50%. However, its earnings growth over the same period has declined by 50.40%. The stock's momentum, as indicated by the RSI 14 Day at 46.76, suggests neutral momentum. These metrics highlight the company's growth potential and the challenges it faces in maintaining profitability.
Conclusion
Yorktown Energy Partners XI, L.P. (Trades, Portfolio)'s decision to reduce its stake in Ramaco Resources Inc is a strategic move that aligns with its investment philosophy. For value investors, the modest undervaluation of Ramaco Resources Inc, combined with its growth potential in the metallurgical coal industry, presents an opportunity worth considering. The transaction underscores the dynamic nature of investment strategies and the importance of adapting to market conditions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
