NEW YORK (TheStreet) -- Shares of Peabody Energy Corp. (BTU) are gaining by 9.61% to $2.51 in late-morning trading on Monday, following a decision by the Supreme Court that determined the Environmental Protection Agency must consider the financial impact to a company when stepping in to impose regulations over public health concerns.
The regulation was a part of an Obama Administration initiative to get power plants to reduce emissions of mercury and other air pollutants.
Peabody Energy, the largest coal producer in the U.S., was one of many companies opposing the EPA rule, CNBC.com reports. Exelon (EXC), the biggest nuclear power plant in the nation, was one of a number of power companies in favor of the rule.
The question the Supreme Court was considering was whether the EPA should have taken into account the cost of compliance when moving to regulate pollutants, CNBC.com noted. Industry groups and even some states were opposed to this measure claiming that limiting emissions could result in costs of up to $9.6 billion.
Separately, TheStreet Ratings team rates PEABODY ENERGY CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PEABODY ENERGY CORP (BTU) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow."