10 Pump and Dump Stocks Favored by Hedge Funds

3. Ramaco Resources, Inc. (NASDAQ:METC)

Number of Hedge Fund Holders: 22

Ramaco Resources, Inc. (NASDAQ:METC) is a metallurgical coal company engaged in the mining, processing, and sale of high-quality metallurgical coal used primarily in steel production. The company operates mines in the US, with a focus on low-cost, high-yield coal extraction. Its customers include domestic and international steel manufacturers, and it generates revenue through long-term supply contracts and spot market sales. METC emphasizes efficient production, reserve expansion, and sustainability initiatives to strengthen its position in the global steel supply chain.

Ramaco Resources, Inc. (NASDAQ:METC) had a strong Q4 2024, with record tons sold, cash costs under $100 per ton, and record liquidity levels despite challenging market conditions. The company managed to maintain cash margins of $33 per ton in Q4, down only $2 from Q2 despite a $30 drop in met coal prices. METC’s cash margins were nearly 50% higher than the next highest public peer in Central Appalachia for both Q3 and Q4. The company is seeing significant supply reductions in the US met coal market, with potentially 16 million tons of production coming out by the end of 2025.

Ramaco Resources, Inc. (NASDAQ:METC) expects the met coal prices to potentially increase in the second half of 2025 due to supply tightening and increased demand from certain markets, which should provide a significant uplift for revenue growth. The company has plans to add approximately 2 million tons of low-vol production when market conditions improve, which would increase overall production to 6.5-7 million tons within 24-36 months. METC’s rare earth and critical minerals project in Wyoming is progressing, with mining set to begin in July and construction of a pilot processing facility starting in the fall. The company maintains a strong balance sheet with record liquidity of about $140 million at year-end 2024. With high stock price volatility in the last 52 weeks and 22 hedge funds owning the stock, METC is one of the pump and dump stocks favored by hedge funds.