How will the third‑quarter stock dividend affect METC’s share price and trading volume in the short term?

Short‑term price impact

A stock‑dividend is treated by the market as a modest, non‑cash dilution. When the dividend is announced, the “ex‑dividend” date will trigger an automatic price‑adjustment equal to the fair‑value of the new shares that will be issued. In practice, the market usually discounts the price by roughly the percentage of the dividend (e.g., a 5 % stock‑dividend will shave ~5 % off the pre‑announcement price) as the same equity is now split into a larger share count. Because the payout is non‑cash and the underlying fundamentals of Ramaco (oil‑and‑gas assets, cash‑flow generation, recent drilling updates) have not changed, the price correction is typically modest and short‑lived. Expect a 2‑4 % dip on the ex‑date, followed by a quick rebound if the broader market remains bullish on the sector.

Short‑term volume dynamics

The ex‑dividend date creates a “buy‑the‑dividend” window for investors who want to be on record for the additional shares, while short‑covering and position‑adjustment activity spikes on the “record‑date” side. Consequently, daily trading volume will rise 30‑50 % above the 30‑day average for the two‑day window surrounding the ex‑date and record‑date. This heightened activity is largely mechanical rather than sentiment‑driven, so price moves will be relatively muted and more reflective of the dividend‑adjustment rather than new information.

Actionable take‑away

• If you are long: Stay in the position; the dividend‑adjusted price dip is temporary and the extra shares improve future liquidity. Consider buying on the dip if the broader trend remains up‑trend (e.g., price above the 20‑day SMA and holding above the 50‑day SMA).
  
• If you are short‑term neutral: Avoid initiating new short positions until the ex‑date passes, as the forced price adjustment can trigger a quick bounce and the elevated volume may widen spreads.
  

In short, the third‑quarter stock dividend will generate a modest, predictable price discount and a noticeable but short‑lived surge in volume—both of which can be used as a low‑risk entry point for bullish traders or a defensive hold for existing long positions.