Peabody Energy shares (BTU), a pure-play coal-mining company, have seen a dramatic rise in price year-over-year due to Reddit’s increased interest. The stock has seen a decline in recent months. So, given the coal industry’s current supply and capacity constraints, is the stock worth betting on now? Let’s find out.Peabody Energy Corporation (BTU) in St. Louis, Miss., is one of the largest private-sector coal mining companies globally. There are five distinct segments that it operates: Seaborne Thermal Mining; Seaborne Metallurgical Mining. Powder River Basin Mining. And Other U.S. Thermal Mining. BTU was greatly benefited by strong coal market demand, and an increase in pricing as countries recover from the pandemic. BTU’s stock price has increased 482.2% so far in 2018, mainly due to recent Reddit hype surrounding the coal mining company WallStreetBets.

However, BTU’s shares have tanked 21.3% over the past five days. Insider Monkey’s database shows that 18 hedge funds held shares in BTU at the close of the 2nd quarter 2021. This is down from 21 during the previous quarter. Closing yesterday’s session at $14.03, the stock is trading 29.2% below its 52-week high of $19.83.

Although surging prices and a rebound in electricity demand have been a boon for the coal industry, pandemic-related supply disruptions and capacity constraints could affect the industry’s growth.

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