Alliance Resource Partners, L.P. (NASDAQ:ARLP) stock has reached a new 52-week high, trading at $27.8, signaling a robust period for the company amidst favorable market conditions. This milestone reflects a significant uptrend in the company's stock value, marking a 29.17% increase over the past year. Investors have shown increased confidence in Alliance Resource, a trend that is underscored by the stock's impressive performance and the company's ability to capitalize on the current market dynamics. The 52-week high serves as a testament to Alliance Resource's strong position in the market and its potential for sustained growth moving forward.
In other recent news, Alliance Resource Partners reported mixed third-quarter financial results. The company's adjusted EBITDA was $170 million, falling short of Benchmark's $198 million estimate and the $203 million market consensus. This was due to shipment deferrals, a decrease in export sales, and challenging conditions at its Appalachia mining operations. Despite this, Alliance Resource Partners' full-year sales and price per ton are expected to be at the lower end of the previously unchanged ranges, with expense per ton at the higher end of prior guidance.
The company also reported a net income for Q3 2024 of $86.3 million, with consolidated revenue at $613.6 million. Despite a decrease in coal production by 7.2% to 7.8 million tons and a 2.1% drop in the average coal sales price per ton, coal sales shipments increased by 6.7% to 8.4 million tons.
In other developments, Benchmark analyst raised the stock price target for Alliance Resource Partners to $27 from $26, while maintaining a Buy rating on the stock. The company is in the process of finalizing additional contracts for approximately 21.7 million tons spanning from 2025 to 2030. Finally, Alliance Resource Partners announced ongoing major capital projects, expected to complete in early 2025, which should lower operating costs and extend mine life.
InvestingPro Insights
Alliance Resource Partners' recent achievement of a new 52-week high is further supported by several key financial metrics and insights from InvestingPro. The company's stock is currently trading near its 52-week high, with a price that is 99.64% of its peak, reinforcing the article's observation of ARLP's robust performance.
InvestingPro data reveals that ARLP boasts a compelling P/E ratio of 7.88, suggesting that the stock may be undervalued relative to its earnings. This attractive valuation is complemented by a significant dividend yield of 10.43%, which aligns with one of the InvestingPro Tips highlighting ARLP's commitment to paying substantial dividends to shareholders.
Moreover, ARLP has demonstrated strong returns, with a 15.51% price total return over the past three months and an impressive 42.89% year-to-date. These figures underscore the stock's upward trajectory mentioned in the article.
InvestingPro Tips also point out that ARLP has maintained dividend payments for 26 consecutive years, indicating a consistent track record of shareholder returns. This long-standing dividend history, combined with the company's profitability over the last twelve months, supports the positive investor sentiment described in the article.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights, with 8 more tips available for Alliance Resource Partners.
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