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SunCoke (SXC) Hits New 52-Week High on Proposed Merger
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Shares of SunCoke Energy, Inc. (SXC - Free Report) scaled a new 52-week high of $13.13 on Dec 7 before eventually closing at $12.96. Over the past 52 weeks, SunCoke’s shares have ranged from a low of $2.05 on Jan 20, 2016 to a high of $13.13 on Dec 7, 2016. The average volume of shares traded over the last three months is 0.9 million.
What’s Driving the Stock?
SunCoke is the largest independent coke supplier in North America. On Oct 31, SunCoke submitted a proposal to the board of directors of SunCoke Energy Partners, L.P. to acquire all outstanding units of the partnership not already owned by the company.
SunCoke Energy Partners unitholders would receive approximately 1.65 new shares of SunCoke common stock for each SunCoke Energy Partners common unit. The proposed transaction would enhance value for both the company and the partnership. The value of SunCoke Energy’s shares is increasing as expected. Share price of SunCoke Energy has surged 26.9% since the announcement of the proposed acquisition.
This merger will render the combined entity greater financial flexibility to initiate dividend distribution, allow it to pursue a broader set of growth opportunities and aid the generation of meaningful cash flow.
In addition, the company has commissioned a new ship loader, which will increase its annual transloading capacity by 15 million tons. This will allow the company to develop additional lines of business, expand its present operations and create additional sources of revenues.
Price Movement
The company’s stock has surged about 339.3% this year, outperforming the Zacks categorized Coal industry’s increase of 143.6% in the last 12 months.
SunCoke remains well positioned to create long-term value for investors, and its long-term fee-based, take-or-pay coke contracts with three major U.S. integrated steel producers offer it cash flow stability despite unfavorable fluctuations in steel price.
Zacks Rank & Other Key Picks
SunCoke currently sports a Zacks Rank #1 (Strong Buy). A couple of other favorably placed stocks in the same space include Alliance Resource Partners, L.P. (ARLP - Free Report) and Cloud Peak Energy Inc. . Both the stocks flaunt the same Zacks Rank as SunCoke. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alliance Resource’s estimates have increased from $2.50 to $2.98 in the last 60 days.
Meanwhile, Cloud Peak Energy’s estimates have narrowed from a loss of 53 cents to a loss of 2 cents in the last 60 days.
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SunCoke (SXC) Hits New 52-Week High on Proposed Merger
Shares of SunCoke Energy, Inc. (SXC - Free Report) scaled a new 52-week high of $13.13 on Dec 7 before eventually closing at $12.96. Over the past 52 weeks, SunCoke’s shares have ranged from a low of $2.05 on Jan 20, 2016 to a high of $13.13 on Dec 7, 2016. The average volume of shares traded over the last three months is 0.9 million.
What’s Driving the Stock?
SunCoke is the largest independent coke supplier in North America. On Oct 31, SunCoke submitted a proposal to the board of directors of SunCoke Energy Partners, L.P. to acquire all outstanding units of the partnership not already owned by the company.
SunCoke Energy Partners unitholders would receive approximately 1.65 new shares of SunCoke common stock for each SunCoke Energy Partners common unit. The proposed transaction would enhance value for both the company and the partnership. The value of SunCoke Energy’s shares is increasing as expected. Share price of SunCoke Energy has surged 26.9% since the announcement of the proposed acquisition.
This merger will render the combined entity greater financial flexibility to initiate dividend distribution, allow it to pursue a broader set of growth opportunities and aid the generation of meaningful cash flow.
In addition, the company has commissioned a new ship loader, which will increase its annual transloading capacity by 15 million tons. This will allow the company to develop additional lines of business, expand its present operations and create additional sources of revenues.
Price Movement
The company’s stock has surged about 339.3% this year, outperforming the Zacks categorized Coal industry’s increase of 143.6% in the last 12 months.
SunCoke remains well positioned to create long-term value for investors, and its long-term fee-based, take-or-pay coke contracts with three major U.S. integrated steel producers offer it cash flow stability despite unfavorable fluctuations in steel price.
Zacks Rank & Other Key Picks
SunCoke currently sports a Zacks Rank #1 (Strong Buy). A couple of other favorably placed stocks in the same space include Alliance Resource Partners, L.P. (ARLP - Free Report) and Cloud Peak Energy Inc. . Both the stocks flaunt the same Zacks Rank as SunCoke. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alliance Resource’s estimates have increased from $2.50 to $2.98 in the last 60 days.
Meanwhile, Cloud Peak Energy’s estimates have narrowed from a loss of 53 cents to a loss of 2 cents in the last 60 days.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>