Peabody Energy Target of Unusually Large Options Trading (NYSE:BTU)

Peabody Energy Corporation (NYSE:BTU) was the target of unusually large options trading on Friday. Stock investors purchased 21,779 call options on the company. This represents an increase of approximately 94% compared to the typical volume of 11,255 call options.

Peabody Energy News Summary

Here are the key news stories impacting Peabody Energy this week:

• Positive Sentiment: Analyst upgrade and higher price target — B. Riley raised its price target on BTU to $43 and reiterated a “buy” rating, signaling institutional optimism and providing fresh upside justification for investors. Benzinga
• Positive Sentiment: Unusually large bullish options activity — Traders bought 21,779 call options (about a 94% increase vs. average), which is a near-term bullish signal and can amplify upward price moves as market-makers hedge. (Source: options flow report)
• Positive Sentiment: Operational update: Centurion longwall ahead of schedule — Company filings and the PR release note Centurion ramping faster than planned and that key operational/financial metrics met or exceeded 2025 guidance, supporting better cash-flow prospects. Peabody Reports Results
• Positive Sentiment: Dividend declared — The board declared a quarterly dividend of $0.075/share (payable March 10), which can support investor interest and income buyers even though the yield is modest. Dividend Announcement
• Neutral Sentiment: Q4 earnings materials / transcripts available — Multiple transcripts and write-ups were published (call transcripts on MSN, Yahoo, Seeking Alpha), useful for investors digging into management commentary and forward guidance. MSN Transcript Yahoo
• Negative Sentiment: Q4 results: slight EPS miss and revenue down year-over-year — Peabody reported $0.09 EPS (missed consensus by $0.01) and revenue declined ~9% YoY; net margin and ROE remain slightly negative, which tempers the bullish headlines. Press Release
• Negative Sentiment: Analyst downgrade from Zacks — Zacks moved BTU from “hold” to “strong sell,” which may pressure sentiment among retail and some institutional investors. Zacks
• Negative Sentiment: Valuation / downgrade commentary — Some analysts/commentators note that after a large rally (roughly 95% over the past year), near-term upside looks less compelling and valuation sits at the higher end of recent ranges, which could cap further gains. Seeking Alpha

Peabody Energy Price Performance

BTU opened at $36.88 on Friday. The company has a quick ratio of 1.49, a current ratio of 1.85 and a debt-to-equity ratio of 0.09. The company’s 50-day moving average price is $32.31 and its 200 day moving average price is $26.60. Peabody Energy has a fifty-two week low of $9.61 and a fifty-two week high of $39.95. The firm has a market cap of $4.48 billion, a price-to-earnings ratio of -81.96 and a beta of 0.52.

Peabody Energy (NYSE:BTU) last posted its earnings results on Thursday, February 5th. The coal producer reported $0.09 EPS for the quarter, missing the consensus estimate of $0.10 by ($0.01). The company had revenue of $1.02 billion for the quarter, compared to the consensus estimate of $1.02 billion. Peabody Energy had a negative net margin of 1.37% and a negative return on equity of 0.93%. The firm’s revenue for the quarter was down 9.0% compared to the same quarter last year. During the same period last year, the company posted $0.25 earnings per share. As a group, sell-side analysts expect that Peabody Energy will post 2.61 earnings per share for the current year.

Peabody Energy Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Monday, February 23rd will be given a $0.075 dividend. The ex-dividend date of this dividend is Monday, February 23rd. This represents a $0.30 annualized dividend and a yield of 0.8%. Peabody Energy’s dividend payout ratio (DPR) is currently -103.45%.

Insider Transactions at Peabody Energy

In related news, CAO Scott T. Jarboe sold 2,151 shares of the firm’s stock in a transaction that occurred on Wednesday, January 14th. The shares were sold at an average price of $34.26, for a total value of $73,693.26. Following the transaction, the chief accounting officer owned 82,306 shares in the company, valued at approximately $2,819,803.56. This trade represents a 2.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 0.41% of the company’s stock.

Hedge Funds Weigh In On Peabody Energy

Several institutional investors have recently modified their holdings of the company. Massachusetts Financial Services Co. MA acquired a new position in Peabody Energy during the 4th quarter valued at about $90,603,000. Sourcerock Group LLC acquired a new position in shares of Peabody Energy during the second quarter worth approximately $28,092,000. State Street Corp boosted its position in shares of Peabody Energy by 19.3% during the second quarter. State Street Corp now owns 9,208,031 shares of the coal producer’s stock worth $123,572,000 after buying an additional 1,487,531 shares during the period. Phoenix Financial Ltd. bought a new position in Peabody Energy in the 4th quarter worth approximately $38,125,000. Finally, Vanguard Group Inc. increased its position in Peabody Energy by 8.5% in the 4th quarter. Vanguard Group Inc. now owns 15,135,096 shares of the coal producer’s stock valued at $449,512,000 after acquiring an additional 1,191,438 shares during the period. Institutional investors own 87.44% of the company’s stock.

Analyst Ratings Changes

A number of analysts have recently issued reports on BTU shares. B. Riley Financial lifted their price objective on shares of Peabody Energy from $38.00 to $43.00 and gave the company a “buy” rating in a research note on Wednesday. Weiss Ratings raised shares of Peabody Energy from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, January 12th. Jefferies Financial Group boosted their price objective on shares of Peabody Energy from $42.00 to $44.00 and gave the stock a “buy” rating in a report on Tuesday, January 20th. Zacks Research cut shares of Peabody Energy from a “hold” rating to a “strong sell” rating in a research report on Wednesday. Finally, Wall Street Zen raised Peabody Energy from a “sell” rating to a “hold” rating in a research report on Friday, January 23rd. Four analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $38.20.

About Peabody Energy

Peabody Energy Corporation is one of the world’s largest private-sector coal companies, engaged primarily in the production and sale of metallurgical and thermal coal. The company’s operations span surface and underground mines, serving utilities, steel mills and other industrial customers that rely on coal as an essential component in power generation and steelmaking. Peabody’s product portfolio includes high-energy thermal coal for electricity generation and low-volatile metallurgical coal used in steel production, reflecting its diverse end-market reach.

Founded in 1883, Peabody Energy has grown from a regional mining concern into a global energy supplier.