why Peabody Energy Corporation [BTU] is a Good Choice for Investors After New Price Target of $28.40

Peabody Energy Corporation [NYSE: BTU] jumped around 1.45 points on Tuesday, while shares priced at $20.67 at the close of the session, up 7.54%. The company report on July 29, 2022 that PIC AU HOLDINGS LLC AND PIC AU HOLDINGS CORPORATION, WHOLLY-OWNED SUBSIDIARIES OF PEABODY, ANNOUNCE OFFER TO PURCHASE UP TO $27.204 MILLION IN AGGREGATE PRINCIPAL AMOUNT OF THEIR 10.000% SENIOR SECURED NOTES DUE 2024.


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Wholly-owned subsidiaries of Peabody (NYSE: BTU), PIC AU Holdings LLC, a Delaware limited liability company (the “Main Issuer”), and PIC AU Holdings Corporation, a Delaware corporation (together with the Main Issuer, the “Co-Issuers”), today announced their offer to purchase (the “Offer”) for cash up to $27.204 million (the “Excess Cash Flow Amount”) in aggregate principal amount of their 10.000% Senior Secured Notes due 2024 (the “Notes”) at a purchase price equal to 103.91% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest as set forth in the Indenture (as defined below), to, but excluding, the settlement date, on the terms and subject to the conditions set forth in the Offer to Purchase, dated July 29, 2022 (the “Offer to Purchase”). The Offer is being made to satisfy the requirements of the Indenture. The Excess Cash Flow Amount for the Offer represents the pro rata portion of the Excess Cash Flow (as defined in the Indenture) to be applied to an offer to purchase the Notes pursuant to the Indenture, with the remainder to be applied to a concurrent debt repurchase offer of Priority Lien Debt (as defined in the Indenture) under the Credit Agreement, dated as of January 29, 2021, among the Co-Issuers, as co-borrowers, the lenders party thereto from time to time and Wilmington Trust, National Association (as successor to JPMorgan Chase Bank, N.A.), as administrative agent.

The Offer will expire at 5:00 p.m., New York City time, on August 29, 2022, unless extended or earlier terminated by the Co-Issuers (the “Expiration Time”).  Subject to the Excess Cash Flow Amount, for each $1,000 principal amount of Notes validly tendered (and not validly withdrawn) prior to the Expiration Time and accepted by the Co-Issuers, holders of Notes will receive $1,039.10 in cash (the “Offer Price”), plus accrued and unpaid interest as set forth in the Indenture, to, but excluding, the settlement date. Tendered Notes may be validly withdrawn at any time prior to the Expiration Time, unless extended or earlier terminated by the Co-Issuers. The settlement date is currently expected to be the second business day following the Expiration Time.

Peabody Energy Corporation stock is now 105.26% up from its year-to-date (YTD) trading value. BTU Stock saw the intraday high of $20.95 and lowest of $19.67 per share. The company’s 52-week high price is 33.29, which means current price is +110.27% above from all time high which was touched on 04/18/22.

Compared to the average trading volume of 5.83M shares, BTU reached a trading volume of 5081103 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Peabody Energy Corporation [BTU]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for BTU shares is $28.40 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on BTU stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Jefferies have made an estimate for Peabody Energy Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on June 07, 2022. The new note on the price target was released on October 29, 2021, representing the official price target for Peabody Energy Corporation stock. Previously, the target price had yet another raise from $15 to $22, while B. Riley Securities kept a Buy rating on BTU stock.

The Average True Range (ATR) for Peabody Energy Corporation is set at 1.55, with the Price to Sales ratio for BTU stock in the period of the last 12 months amounting to 0.74. The Price to Book ratio for the last quarter was 1.52, with the Price to Cash per share for the same quarter was set at 5.84. Price to Free Cash Flow for BTU in the course of the last twelve months was 12.29 with Quick ratio for the last quarter at 1.90.

How has BTU stock performed recently?

Peabody Energy Corporation [BTU] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 6.27. With this latest performance, BTU shares dropped by -0.62% in over the last four-week period, additionally plugging by 63.27% over the last 6 months – not to mention a rise of 78.96% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for BTU stock in for the last two-week period is set at 48.91, with the RSI for the last a single of trading hit 52.27, and the three-weeks RSI is set at 47.83 for Peabody Energy Corporation [BTU]. The present Moving Average for the last 50 days of trading for this stock 22.22, while it was recorded at 19.50 for the last single week of trading, and 18.31 for the last 200 days.

Peabody Energy Corporation [BTU]: Deeper insight into the fundamentals

Peabody Energy Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.90 and a Current Ratio set at 2.20.

Insider trade positions for Peabody Energy Corporation [BTU]

There are presently around $2,291 million, or 82.00% of BTU stock, in the hands of institutional investors. The top three institutional holders of BTU stocks are: ELLIOTT INVESTMENT MANAGEMENT L.P. with ownership of 25,859,970, which is approximately 0% of the company’s market cap and around 0.50% of the total institutional ownership; STATE STREET CORP, holding 8,210,721 shares of the stock with an approximate value of $169.72 million in BTU stocks shares; and FMR LLC, currently with $163.75 million in BTU stock with ownership of nearly New of the company’s market capitalization.

123 institutional holders increased their position in Peabody Energy Corporation [NYSE:BTU] by around 30,972,347 shares. Additionally, 110 investors decreased positions by around 14,604,597 shares, while 23 investors held positions by with 65,274,639 shares. The mentioned changes placed institutional holdings at 110,851,583 shares, according to the latest SEC report filing. BTU stock had 62 new institutional investments in for a total of 18,672,426 shares, while 43 institutional investors sold positions of 3,209,364 shares during the same period.

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