The Whitehaven Coal Ltd (ASX: WHC) share price has tumbled in recent times, hitting its lowest point in nearly a month on Monday.
Indeed, it's dumped 11.7% since this time last week. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has gained 2.6%.
The Whitehaven share price closed Tuesday's session at $9.15.
So, what might be going wrong with the ASX 200 coal share? Let's take a look.
What might be weighing on Whitehaven shares?
The Whitehaven Coal share price has been struggling over the last week amid falling coal prices, bearish experts, the company's annual general meeting (AGM), and earnings from fellow coal producers.
Let's start with the Whitehaven AGM, hosted last Wednesday.
There, shareholders and management welcomed further on-market share buybacks – aiming to snap up an extra 25% of the company's outstanding stock. That's on top of the 10% already secured through a previous buyback.
But optimism from such capital return activities might have been balanced by the quarterly earnings of coal peer Coronado Global Resources Inc (ASX: CRN), released on Monday. While the ASX 200 coal miner is enjoying a record year, falling commodity prices appear to be kicking in.
Coronado's revenue fell 15% quarter-on-quarter as its average realised coal price dropped 21% to US$253 per tonne.
Coal prices have come off their September record high – which saw it reach approximately US$450 a tonne – to trade near US$350 right now. And that's tipped to continue dropping, though experts' opinions differ when it comes to how fast it might fall.
And some appear to wonder if the Whitehaven share price will follow the path worn by the commodity's value.
Alto Capital's Tony Locantro tips the stock as a sell, saying, courtesy of The Bull:
The coal sector has outperformed the market … [Whitehaven] shares have risen from $2.75 on January 5 to close at $9.83 on October 27. Investors may want to consider locking in a profit.
Not all are so bearish, however. Goldman Sachs recently upped its price target on the stock to $9.70, slapping it with a neutral rating.
The broker tips demand for coal to continue in the near term, driving volatility in the Whitehaven share price.
