FBR Capital Believes WLB Won’t Stop Here

By Ryan Adsit

FBR Capital analyst Lucas Pipes reiterated a Buy rating on Westmoreland Coal Company (NASDAQ: WLB) today and set a price target of $16. The company’s shares closed yesterday at $12.75, close to its 52-week high of $13.62.

According to TipRanks.com, Pipes is a 4-star analyst with an average return of 2.4% and a 51.4% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Stillwater Mining Company, Hallador Energy Company, and Cloud Peak Energy Inc.

Westmoreland Coal Company has an analyst consensus of Moderate Buy, with a price target consensus of $16.

Based on Westmoreland Coal Company’s latest earnings report from September 30, the company posted quarterly revenue of $370.7M and quarterly net profit of -$8.52M. In comparison, last year the company earned revenue of $349.8M and had a net profit of -$46.56M.

Based on the recent corporate insider activity of 16 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of WLB in relation to earlier this year. Most recently, in May 2016, Michael Hutchinson, a Director at WLB bought 3,364 shares for a total of $24,254.

Westmoreland Coal Co. operates as an energy company. The company operates through the following business segments: Coal & Power. The Coal segment includes the production and sale of coal from Wyoming, montana, North Dakota and Texas. The Power segment includes its ROVA operations located in North Carolina. It has two non-operating segments: Heritage and Corporate. The Heritage segment costs consist primarily of payments of retired workers for various types of postretirement medical benefits. The Corporate segment primarily consists of corporate administrative expenses. Westmoreland Coal was founded in 1854 and is headquartered in Englewood, CO.