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Peabody Energy Stock Rises after Termination of Purchase Agreements

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Written by Timothy Sykes Reviewed by Bryce Tuohey Fact-checked by Matt Monaco
Updated 9/7/2025, 12:13 pm ET 9/7/2025, 12:13 pm ET | 6 min 6 min read
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Peabody Energy Corporation’s stocks have been trading up by 9.89 percent, driven by robust energy sector momentum.

Energy industry expert:

Analyst sentiment – neutral

Market Position & Fundamentals: Peabody Energy (BTU) is currently under financial pressure despite its long-standing position in the energy sector. The company’s recent quarterly reports indicate negative net income from continuing operations at -$51.6 million and an EBITDA margin of 16.2%, highlighting challenges in maintaining profitability. Peabody’s total debt-to-equity ratio stands at a conservative 0.11, strengthening its balance sheet stability. However, the gross margin sits unequivocally high at 100%, reflecting well on operational efficiency but offset by weak profitability margins (profit margin total of 4.24%). While revenue growth over three and five-year periods is positive, the company’s high P/E ratio of 24.53 suggests it may be overvalued relative to earnings, raising concerns amid negative net incomes. Overall, Peabody is struggling with profitability despite a structurally sound balance sheet.

Technical Analysis & Trading Strategy: The recent price action of Peabody Energy suggests the emergence of a bullish trend, characterized by a noticeable rally from $16.78 to $19.12 over the analyzed period. Notably, the significant upward move on September 4, with a sharp high close of $19.12, represents a solid breakout from previous range-bound levels. Volume patterns would be crucial to confirming the strength of this trend, with amplified buying volume underlining this price surge. An actionable trading strategy would be to enter long positions, capitalizing on momentum if the stock maintains levels above $18.50. Moreover, technical indicators such as the Moving Average Convergence Divergence (MACD) could be evaluated for bullish crossover signals, supporting the positive continuation of this trend.

Catalysts & Outlook: Recent news spotlighting an adjustment of UBS’s price target for Peabody Energy to $15.50—up from $14—illustrates mixed sentiment. Although the firm retains a Neutral rating, the adjustment points to tempered optimism following the company’s termination of purchase agreements with Anglo American. This development, due to a material adverse change, bolstered Peabody’s stock price, albeit temporarily. Compared to energy and fossil fuel benchmarks, Peabody’s operational struggles pose a risk, given the sector’s intensified competitive dynamics and fluctuating market conditions. Analysts’ average price target of $18.97 provides an upper resistance level, suggesting limited upside potential. Overall, Peabody faces headwinds; however, operational efficiencies and conservative debt management offer a cushion, resulting in a cautious, yet stable outlook.

Candlestick Chart

Weekly Update Sep 01 – Sep 05, 2025: On Sunday, September 07, 2025 Peabody Energy Corporation stock [NYSE: BTU] is trending up by 9.89%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Peabody Energy Corporation is showing varied financial metrics, possibly providing traders with mixed signals. The stock prices have seen fluctuations with an upward trajectory over recent days, recording a close at $19.12 as of September 5, 2025, up from $16.8 on September 2, 2025. This sharp increase highlights significant market interest and potential investor confidence.

The profitability ratios paint an intriguing picture; the company’s EBIT margin stands at 7.1%, with an EBITDA margin reaching over 16%. Despite these seemingly healthy margins, the net income numbers reveal a different story. A reported net income of negative $27.6 million could be cause for concern, especially as the Peabody Energy’s stock appears buoyed by other factors. Additionally, the company’s return on equity presents at an impressive 35.22%, however, the return on capital lags at 5.92%. These metrics indicate effective equity utilization but also suggest potential inefficiencies in leveraging the company’s broader capital base.

More Breaking News

The recent analyst update, which adjusts the price target upwards, also correlates with the upward trend in recent trading prices. Investors might interpret this as a signal of a more robust market performance outlook for Peabody Energy. The company’s valuation metrics, such as a P/E ratio of 24.53, suggest that the stock might be valued at a premium currently, reflecting perhaps investor anticipation of future performance rather than current profitability.

Conclusion

The positive shifts in Peabody Energy’s stock price showcase trader optimism aided by market developments such as UBS’s revised price targets and strategic company decisions in terminating unfruitful agreements. As millionaire penny stock trader and teacher Tim Sykes says, “Embrace the journey, the ups and downs; each mistake is a lesson to improve your strategy.” Despite these bullish signals, the nuanced understanding of Peabody’s financial position reveals a more complex landscape. Balancing high equity returns against operational profitability challenges will prompt traders to weigh immediate gains against long-term sustainability. As Peabody Energy steers to bolster its market standing post-purchase agreement termination, the financial metrics and strategic decisions will play pivotal roles in shaping its stock’s near-term trajectory.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”