Investors loved the coal miner early in the week and then quickly changed their minds, sending the shares lower. Here's why.
Shares of Peabody Energy (NYSE: BTU) crashed 16% by noon EDT on Tuesday, tanking on a day the coal stock received an analyst upgrade and one day after skyrocketing. This morning, B. Riley raised its price target on Peabody Energy by $1 to $23 a share, stating it saw the company's preliminary results as a "positive step forward." Peabody Energy reported its preliminary numbers for the third quarter yesterday, announcing its coal sales had topped $900 million to levels not seen in nearly seven quarters.
Coal stock Peabody Energy (NYSE: BTU) shot up Monday morning, having jumped as much as 20.6% as of 11:10 a.m. EDT after the market took a liking to the coal producer's preliminary numbers. A deeper dive into the numbers, though, reflects muted year-over-year growth, which means there was more to Peabody Energy stock's rally this morning. The biggest number from Peabody Energy's preliminary results that caught the market's attention is its coal sales, which crossed $900 million during the quarter to levels last seen nearly seven quarters ago.