Peabody Energy Stock: Why One Fund Trimmed 3 Million Shares After a Big Run
Key Points
Seattle-based wealth advisory Progeny 3 sold 3 million shares of Peabody Energy Corporation in the third uqarter, reducing exposure by approximately $28.5 million as of September 30.
The transaction value equals approximately 2.8% of 13F reportable AUM.
Following the sale, Progeny reported holding 908,593 BTU shares valued at approximately $24.1 million.
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Seattle-based wealth advisory Progeny 3 disclosed a reduction of 3 million shares in Peabody Energy Corporation (NYSE:BTU), trimming its stake by an estimated $28.5 million as of September 30, per SEC filings.
What Happened
An SEC filing published November 14, shows Progeny 3 sold 3 million shares of Peabody Energy Corporation (NYSE:BTU) over the previous quarter. The position decreased in value by an estimated $28.5 million, with the fund holding 908,593 shares valued at $24.1 million as of September 30. The stake now accounts for 1.2% of the fund’s $1.9 billion reportable U.S. equity holdings.
What Else to Know
Top holdings after the filing:
- NYSE:CCJ: $204.8 million (10.6% of AUM)
- NYSE:TIC: $203.1 million (10.5% of AUM)
- NASDAQ:IBKR: $146.3 million (7.6% of AUM)
- NYSE:APG: $121.7 million (6.3% of AUM)
- NASDAQ:SSNC: $99.9 million (5.2% of AUM)
As of Thursday, Peabody Energy Corporation shares were priced at $29.16, up 27% over the past year and well outperforming the S&P 500, which is up 12% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $4 billion |
| Net Income (TTM) | ($32.7 million) |
| Dividend Yield | 1% |
| Price (as of Thursday) | $29.16 |
Company Snapshot
- Peabody Energy produces and sells thermal and metallurgical coal, with operations spanning the United States and Australia; main revenue streams include coal sales to utilities and industrial customers.
- The company operates through mining, preparation, and sale of coal, as well as trading and transportation-related services, generating income from both direct coal sales and brokered contracts.
- It serves electricity generators, industrial facilities, and steel manufacturers in the U.S. and international markets such as Japan, India, and China.
Peabody Energy Corporation is a leading coal producer with a diversified portfolio of mining operations and a significant reserve base. The company leverages its scale and geographic reach to supply both thermal and metallurgical coal to a global customer base.
Foolish Take
This move looks like a classic portfolio recalibration during a period of exceptional—but volatile—performance for Peabody Energy. The stock surged into mid-October before swinging sharply, and with third-quarter earnings showing both operational strength and headline noise, Progeny 3’s decision to trim may reflect disciplined risk management rather than fading conviction.
The company reported a $70.1 million net loss, driven largely by $54 million in costs from the terminated acquisition, and adjusted EBITDA came in at $99.5 million, supported by an increase in revenues compared to the second quarter. Peabody ended the quarter with $603 million in cash and more than $950 million in total liquidity, reinforcing balance-sheet resilience even as seaborne markets pricing stabilized at the lower end of the cycle.
Against that backdrop, Progeny 3’s sale—executed on or before September 30—looks like a tactical trim after a major run-up, especially given the fund’s concentration in large, secular themes like uranium (CCJ) and infrastructure (TIC).
Glossary
13F reportable AUM: The total market value of U.S. equity securities a fund must report quarterly to the SEC.
AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm.
Dividend yield: Annual dividends paid by a company divided by its share price, shown as a percentage.
Forward P/E: Price-to-earnings ratio using forecasted earnings for the next year, estimating how much investors pay per dollar of future profit.
EV/EBITDA: Enterprise value divided by earnings before interest, taxes, depreciation, and amortization; used to compare company valuations.
Trailing twelve months: The most recent 12 consecutive months of financial data, often used for performance analysis.
TTM: The 12-month period ending with the most recent quarterly report.
Metallurgical coal: Coal used primarily in steel production, as opposed to thermal coal used for electricity generation.
Brokered contracts: Agreements arranged by a third party to buy or sell goods, such as coal, on behalf of clients.
Reserve base: The total quantity of mineral resources, such as coal, that a company can economically extract.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cameco, Interactive Brokers Group, and Tic Solutions. The Motley Fool recommends SS&C Technologies and recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group and short January 2027 $46.25 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy.
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