Peabody Energy jumps as convertible-notes plan fuels potential hedge-related buying

Peabody Energy Corporation (BTU) is up 12.0% today. Here is some analysis on what might have caused this price movement.

Analysis: The move appears tied to Peabody’s announced plan to issue new convertible notes and use the proceeds to manage its existing convertible debt. The company also highlighted that noteholder and bank hedging activity connected to the transaction could result in meaningful share purchases, which can sometimes push the stock higher in the near term.

Details:

Peabody announced an intention to offer $225 million of convertible senior notes due 2031, with an option for initial purchasers to buy up to an additional $25 million.

The company said it expects to use proceeds to fund capped call transactions and, along with available cash, repurchase a portion of its outstanding 3.250% convertible senior notes due 2028.

Peabody noted that holders of the 2028 notes who agree to sell back notes and have hedged their exposure may unwind hedges by buying BTU shares and/or adjusting derivatives, which can be substantial versus typical trading volume.

The company also said counterparties may buy shares and/or enter derivatives to hedge the capped calls around pricing and afterward, which can add incremental demand.

Sources:

Peabody Energy (press release/8-K), SEC EDGAR, Investing.com

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$BTU Insider Trading Activity

$BTU insiders have traded $BTU stock on the open market 3 times in the past 6 months. Of those trades, 0 have been purchases and 3 have been sales.

Here’s a breakdown of recent trading of $BTU stock by insiders over the last 6 months:

MARK SPURBECK (EVP and CFO) sold 30,000 shares for an estimated $1,067,400
DARREN RONALD YEATES (EVP & COO) sold 13,892 shares for an estimated $505,668
SCOTT T. JARBOE (CAO and Corporate Secretary) sold 2,151 shares for an estimated $73,693

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.

$BTU Hedge Fund Activity

We have seen 196 institutional investors add shares of $BTU stock to their portfolio, and 184 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

ORBIS ALLAN GRAY LTD removed 4,397,530 shares (-100.0%) from their portfolio in Q1 2026, for an estimated $144,898,613
MAVERICK CAPITAL LTD removed 4,067,173 shares (-100.0%) from their portfolio in Q1 2026, for an estimated $134,013,350
FIL LTD added 1,476,220 shares (+inf%) to their portfolio in Q1 2026, for an estimated $48,641,449
BANK OF AMERICA CORP /DE/ removed 1,427,158 shares (-84.9%) from their portfolio in Q1 2026, for an estimated $47,024,856
JANE STREET GROUP, LLC removed 1,421,584 shares (-61.3%) from their portfolio in Q1 2026, for an estimated $46,841,192
PHOENIX FINANCIAL LTD. removed 1,253,673 shares (-97.7%) from their portfolio in Q1 2026, for an estimated $41,308,525
VANGUARD GROUP INC added 1,191,438 shares (+8.5%) to their portfolio in Q4 2025, for an estimated $35,385,708

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$BTU Price Targets

Multiple analysts have issued price targets for $BTU recently. We have seen 4 analysts offer price targets for $BTU in the last 6 months, with a median target of $36.25.

Here are some recent targets:

George Eadie from UBS set a target price of $30.5 on 05/06/2026
Nick Giles from B. Riley Securities set a target price of $42.0 on 03/31/2026
Chris LaFemina from Jefferies set a target price of $44.0 on 01/20/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.