Peabody Energy (BTU) Soars 2.76% on Policy Support, Lockout Concerns

Peabody Energy (BTU) surged 2.76% today, marking its second consecutive day of gains, with a total increase of 7.77% over the past two days. The share price reached its highest level since May 2025, with an intraday gain of 3.57%.

The strategy of buying BTU shares after they reach a recent high and selling them one week later resulted in a significant loss. Over the past five years, the strategy had a return of -39.32%, with a benchmark return of -100.00% and an excess return of 60.68%. The strategy's CAGR was -18.11%, indicating a decline in value, and had a maximum drawdown of 0.00%, suggesting that the strategy avoided any further losses during the backtest period. However, the strategy had a high volatility of 43.76% and a Sharpe ratio of -0.41, indicating significant risk and moderate returns.

Peabody Energy's stock price has been influenced by several recent developments. The company extended a worker lockout at its Australian coal mine, which could potentially disrupt operations and financial performance. This move has raised concerns among investors about the potential impact on the company's productivity and profitability.

On the other hand, the company's stock has benefited from favorable policy conditions following support from a tax and spending bill. This legislative support has provided a boost to investor confidence, contributing to the recent positive momentum in Peabody Energy's stock price.

Despite the positive developments, Peabody Energy's revenue for the last twelve months was reported at $4.19 billion, representing an 8.24% year-over-year decline. This revenue decline has raised concerns among investors about the company's financial health and future prospects. However, the bullish technical assessment for Peabody Energy in the intermediate term, as of July 9, 2025, suggests that the stock may continue to perform well in the coming months.

Additionally, D.A. Davidson & CO. increased its stake in Peabody Energy by 145.1% during the first quarter, indicating strong institutional confidence in the company. This significant increase in stake by a major financial entity has further bolstered investor sentiment and contributed to the recent rally in Peabody Energy's stock price.