Don't Take a Position in American Resources Without Knowing Its Fundamentals!

American Resources logged a 0.3% change during today's morning session, and is now trading at a price of $1.47 per share. The S&P 500 index moved 0.1% and the Nasdaq posted a -0.1% change. AREC's trading volume is 38,434 compared to the stock's average volume of 585,014.

Shares of American Resources have a 50-day average price of $1.4698 as of January 2022. American Resources Corporation engages in the extraction, processing, transportation, distribution, and sale of metallurgical coal to the steel industries. The small-cap Basic Materials company has 11 full time employees and is based in Fishers, IN. American Resources has not offered any dividends in the last year.

Snapshot of the Company's Negative and Irregular Margins with a Negative Rate of Change:

2019-12-31 2020-12-31 2021-12-31
Revenue (k) $24,478 $1,060 $7,755
Revenue Growth n/a -95.67% 631.85%
Gross Margins -23.8% -382.0% -8.2%
Gross Margins Growth n/a -1505.04% 97.85%
Operating Margins -133.4% -1552.1% -365.3%
Operating Margins Growth n/a -1063.49% 76.46%
Earnings Per Share -$2.94 -$0.35 -$0.59
EPS Growth n/a 88.1% -68.57%
Free Cash Flow (k) -$19,534 -$13,847 -$32,161
FCF Growth n/a 29.11% -132.26%
Capital Expenditures (k) -$327 $0 -$3,069
LT Debt to Equity -0.17 -0.98 -3.91

American Resources has negative earnings for the current period, so its trailing twelve month P/E ratio is not meaningful. But based on its EPS guidance of 0.19, the company has a forward P/E ratio of 7.7. In contrast, the Basic Materials sector's average P/E ratio is 8.57.

American Resources Benefits From Positive Market Indicators:

2 analysts are following American Resources and have set target prices ranging from $4.5 to $5 per share. On average, they have given the company a rating of buy. At the current price of $1.47, AREC is trading -69.16% away from its average analyst target price of $4.75 per share, implying an analyst consensus of strong upside potential for the stock.

The company has an average amount of shares sold short since 5.0% of the company's shares are tied to short positions. Institutions own 10.8% of American Resources's shares, while the insider ownership rate stands at 26.63%. The biggest shareholder is the Vanguard Group, Inc. with a 12% stake in the company worth approximately $3,191,344.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

IN FOCUS