Arch Coal Inc (ACI) Shares Fall on Looming January 15 Bankruptcy


It’s hard to believe that shares of Arch Coal Inc (NYSE:ACI) were trading at over $19.00 each less than one year ago. The American based coal mining and processing company has faced rough times ever since. Employing over 6,000 workers, they had become the second largest supplier of coal in the U.S. Now, however, bankruptcy looms, and the stock has taken a nose dive.

Arch Coal Inc (NYSE:ACI) owes $90 million to creditors, and yesterday they decided to delay a bankruptcy filing for another month, hoping that by some means they could work out some sort of agreement with their creditors. The stock reacted positively going from around $0.71 in pre-market trading yesterday to around $1.20 in pre-market today. And then the collapse occurred. With bankruptcy now looming for January 15, and creditors not seeming to line up to negotiate, shareholders are again dumping the stock.

The stock is down 14.95% or $0.16 following the news, hitting $0.91 per share. Approximately 1.52M shares traded hands. ACI shares have risen 22.99% since May 13, 2015 and are currently uptrending. It has outperformed the S&P500 by 25.61%.

From a total of 4 analysts covering Arch Coal Inc. (NYSE:ACI) stock, 1 rate it a “Buy”, 1 a “Sell”, and 2 a “Hold”. This means that 25% of the ratings are positive. The highest target price is $6.24 while the lowest target price is $0.50. The mean of all analyst targets is $3.37 which is 270.33% above today’s ($0.91) stock price. Arch Coal Inc. was the topic of 6 analyst reports since August 3, 2015 according to the firm StockzIntelligence Inc. Sterne Agee CRT downgraded shares on November 10 to a “Neutral” rating. Vetr upgraded ACI stock in a recent report from September 8 to a “Strong-Buy” rating.

The institutional sentiment decreased to 0 in Q2 2015. It’s down 0.46, from 0.46 in 2015Q2. The ratio worsened, as 140 funds sold all their Arch Coal Inc shares they owned while 2 reduced their positions. 0 funds bought stakes while 0 increased their total positions. Institutions now own 593,697 shares which is 99.24% less than the previous share count of 78.29 million in 2015Q2.

D.C. Capital Advisors Ltd holds 1.05% of its total portfolio in Arch Coal Inc, equating to 500,000 shares. Marque Millennium Capital Management Lcc owns 19,390 shares representing 0.05% of their total US portfolio. Moreover, Municipal Employees' Retirement System Of Michigan has 0.01% of their total portfolio invested in the company, equating to 54,300 shares. The Kentucky-based Alphamark Advisors Llc has a total of 0% of their portfolio invested in the stock. Keeley Asset Management Corp, a Illinois-based fund reported 20,000 shares owned.

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 $23.04 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.