Peabody Energy Stock Up 105% in a Year as $14.15 Million Stake Gets Trimmed
Key Points
Gate City Capital Management sold 481,537 shares of Peabody Energy, with an estimated transaction value of $14.15 million based on quarterly average prices.
Meanwhile, the quarter-end value of the BTU position decreased by $10.83 million, reflecting both trading activity and price changes.
Post-sale, Gate City Capital Management holds 609,806 shares of Peabody Energy, valued at $18.11 million as of December 31, 2025.
The BTU stake now accounts for 7.84% of the fund’s AUM.
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On February 17, 2026, Gate City Capital Management reported selling 481,537 shares of Peabody Energy (NYSE:BTU), an estimated $14.15 million trade based on quarterly average pricing.
What happened
According to a February 17, 2026, SEC filing, Gate City Capital Management reduced its holding in Peabody Energy (NYSE:BTU) by 481,537 shares during the fourth quarter of 2025. The estimated transaction value, calculated using the quarter’s average closing price, was approximately $14.15 million. At quarter-end, the remaining BTU position was valued at $18.11 million, and the position’s value shift, including price movements, was $10.83 million lower than the previous quarter.
What else to know
- Following the sale, Peabody Energy represented 7.84% of the fund’s 13F assets under management.
- Top holdings after the filing:
- NASDAQ: ALCO: $47.21 million (20.4% of AUM)
- NYSE: EVC: $32.50 million (14.1% of AUM)
- NYSE: IPI: $25.35 million (11.0% of AUM)
- NASDAQ: HTLD: $19.80 million (8.6% of AUM)
- NYSE: BTU: $18.11 million (7.8% of AUM)
- As of February 16, 2026, shares of Peabody Energy were priced at $34.45, up 104.8% over the past year, outperforming the S&P 500 by 93.02 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $3.86 billion |
| Net income (TTM) | ($52.90 million) |
| Dividend yield | 0.90% |
| Price (as of market close February 13, 2026) | $34.45 |
Company snapshot
- Peabody Energy produces and sells thermal and metallurgical coal, with operations spanning the United States and Australia.
- The firm generates revenue primarily through coal mining, preparation, and direct or brokered sales to utilities and industrial users.
- It serves electricity generators, industrial facilities, and steel manufacturers across global markets, including Asia and North America.
Peabody Energy is a leading coal producer with a global footprint, supplying both thermal and metallurgical coal for power generation and steelmaking. The company leverages extensive coal reserves and a diversified customer base to maintain its position in the energy and industrial sectors. Strategic international operations and a broad product portfolio support its competitive standing in the global coal market.
What this transaction means for investors
Big gains force tough decisions, but when a stock doubles in a year, trimming a stake is often simply about discipline.
Peabody wrapped 2025 with $3.86 billion in revenue and $454.9 million in adjusted EBITDA, even as full-year net income swung to a $52.9 million loss amid weaker seaborne pricing. The fourth quarter delivered $118.1 million in Adjusted EBITDA and solid segment performance, particularly in the Powder River Basin, which lifted full-year segment EBITDA 27% year over year.
The bigger story might be Centurion. Longwall mining began two months ahead of schedule, targeting 3.5 million tons in 2026 and ramping toward 4.7 million tons annually, with a stated $2.1 billion net present value at benchmark pricing. That materially increases leverage to premium metallurgical coal.
Ultimately, with Peabody still a top holding, this looks like reasonable risk management after a 100% run, and it doesn’t seem to necessarily suggest a change in conviction.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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