Seattle-based wealth advisory Progeny 3 disclosed a reduction of 3 million shares in Peabody Energy Corporation (BTU 0.37%), trimming its stake by an estimated $28.5 million as of September 30, per SEC filings.
What Happened
An SEC filing published November 14, shows Progeny 3 sold 3 million shares of Peabody Energy Corporation (BTU 0.37%) over the previous quarter. The position decreased in value by an estimated $28.5 million, with the fund holding 908,593 shares valued at $24.1 million as of September 30. The stake now accounts for 1.2% of the fund’s $1.9 billion reportable U.S. equity holdings.
What Else to Know
Top holdings after the filing:
- NYSE:CCJ: $204.8 million (10.6% of AUM)
- NYSE:TIC: $203.1 million (10.5% of AUM)
- NASDAQ:IBKR: $146.3 million (7.6% of AUM)
- NYSE:APG: $121.7 million (6.3% of AUM)
- NASDAQ:SSNC: $99.9 million (5.2% of AUM)
As of Thursday, Peabody Energy Corporation shares were priced at $29.16, up 27% over the past year and well outperforming the S&P 500, which is up 12% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $4 billion |
| Net Income (TTM) | ($32.7 million) |
| Dividend Yield | 1% |
| Price (as of Thursday) | $29.16 |
Company Snapshot
- Peabody Energy produces and sells thermal and metallurgical coal, with operations spanning the United States and Australia; main revenue streams include coal sales to utilities and industrial customers.
- The company operates through mining, preparation, and sale of coal, as well as trading and transportation-related services, generating income from both direct coal sales and brokered contracts.
- It serves electricity generators, industrial facilities, and steel manufacturers in the U.S. and international markets such as Japan, India, and China.
Peabody Energy Corporation is a leading coal producer with a diversified portfolio of mining operations and a significant reserve base. The company leverages its scale and geographic reach to supply both thermal and metallurgical coal to a global customer base.
Foolish Take
This move looks like a classic portfolio recalibration during a period of exceptional—but volatile—performance for Peabody Energy. The stock surged into mid-October before swinging sharply, and with third-quarter earnings showing both operational strength and headline noise, Progeny 3’s decision to trim may reflect disciplined risk management rather than fading conviction.
The company reported a $70.1 million net loss, driven largely by $54 million in costs from the terminated acquisition, and adjusted EBITDA came in at $99.5 million, supported by an increase in revenues compared to the second quarter. Peabody ended the quarter with $603 million in cash and more than $950 million in total liquidity, reinforcing balance-sheet resilience even as seaborne markets pricing stabilized at the lower end of the cycle.
Against that backdrop, Progeny 3’s sale—executed on or before September 30—looks like a tactical trim after a major run-up, especially given the fund’s concentration in large, secular themes like uranium (CCJ) and infrastructure (TIC).
Glossary
13F reportable AUM: The total market value of U.S. equity securities a fund must report quarterly to the SEC.
AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm.
Dividend yield: Annual dividends paid by a company divided by its share price, shown as a percentage.
Forward P/E: Price-to-earnings ratio using forecasted earnings for the next year, estimating how much investors pay per dollar of future profit.
EV/EBITDA: Enterprise value divided by earnings before interest, taxes, depreciation, and amortization; used to compare company valuations.
Trailing twelve months: The most recent 12 consecutive months of financial data, often used for performance analysis.
TTM: The 12-month period ending with the most recent quarterly report.
Metallurgical coal: Coal used primarily in steel production, as opposed to thermal coal used for electricity generation.
Brokered contracts: Agreements arranged by a third party to buy or sell goods, such as coal, on behalf of clients.
Reserve base: The total quantity of mineral resources, such as coal, that a company can economically extract.
