Arch Coal Inc (ACI) Stock Rises After Company Reaffirms Otter Creek Mine

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It seems as though Arch Coal Inc (NYSE:ACI) has been faced with delay after delay as of late. However, on Friday, the company informed the media that they will be resubmitting its application for a permit for its Otter Creek Mine. This comes on the heels of a $400 million railroad service which was put on hold last week.

Investors seem to be responding positively to the latest news from the company, and this comes as no surprise as there are said to be around 1.4 million tons of coal that will be minable in the Otter Creek area. Back in 2011, Arch Coal purchased Montana Land Board’s public mineral leases for $86 million, in order to mine this huge amount of resourses.

The stock is up 9.01% or $0.1 after the positive news, hitting $1.21 per share. About 2.00 million shares traded hands. ACI has risen 11.00% since April 27, 2015 and is uptrending. It has outperformed by 11.89% the S&P500.

Out of 4 analysts covering Arch Coal Inc. (NYSE:ACI), 1 rate it “Buy”, 1 “Sell”, while 2 “Hold”. This means 25% are positive. $6.24 is the highest target while $0.50 is the lowest. The $3.37 average target is 178.51% above today’s ($1.21) stock price. Arch Coal Inc. was the topic in 6 analyst reports since August 3, 2015 according to StockzIntelligence Inc. Sterne Agee CRT downgraded the stock on November 10 to “Neutral” rating. Vetr upgraded the shares of ACI in a report on September 8 to “Strong-Buy” rating.

“We continue to compile information and data to respond to Montana DEQ’s second set of inquiries related to the Otter Creek mine permit application,” said Logan Bonacorsi, of Arch Coal. “We anticipate resubmittal of the application later this year — now expected to be in early December. At that time, we believe the application will be deemed complete and the process will continue toward issuance of the mine permit.”

The institutional sentiment decreased to 0.46 in Q2 2015. Its down 0.58, from 1.04 in 2015Q1. The ratio turned negative, as 52 funds sold all Arch Coal Inc shares owned while 53 reduced positions. 22 funds bought stakes while 26 increased positions. They now own 78.29 million shares or 39.01% less from 128.36 million shares in 2015Q1.

D.C. Capital Advisors Ltd holds 0.98% of its portfolio in Arch Coal Inc for 5.00 million shares. Athena Global Investors Llc owns 2.16 million shares or 0.66% of their US portfolio. Moreover, Apollo Management Holdings L.P. has 0.17% invested in the company for 2.69 million shares. The Connecticut-based Sound Energy Partners Inc. has invested 0.14% in the stock. 10, a Alabama-based fund reported 824,016 shares.

Arch Coal, Inc. is a coal producer, which sells all of its coal to power plants, steel mills and industrial facilities. The company has a market cap of $23.54 million. The Firm is engaged in the production of thermal and metallurgical coal from surface and underground mines located throughout the United States, for sale to utility, industrial and steel producers both in the United States and around the world. It currently has negative earnings. It operates mining complexes in West Virginia, Kentucky, Maryland, Virginia, Illinois, Wyoming and Colorado.

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