TMC the metals (NASDAQ:TMC) Shares Gap Up - Time to Buy?

Key Points

• TMC shares opened sharply higher, rising from a prior close of $2.30 to $2.55, but later traded at $2.328—near the previous close.
• Commercial mining remains dependent on regulatory approval: NOAA’s decision on TMC USA’s application is now expected by mid-December, later than previously anticipated.
• HC Wainwright maintained a Buy rating but cut its price target from $11.75 to $5.50. TMC reported just $0.08 million in quarterly revenue and used $19.4 million in operating cash, with about $123 million available in cash and credit facilities.

TMC the metals company Inc. (NASDAQ:TMC - Get Free Report)'s share price gapped up prior to trading on Friday. The stock had previously closed at $2.30, but opened at $2.55. TMC the metals shares last traded at $2.3280, with a volume of 1,016,550 shares trading hands.

TMC the metals News Summary

Investors following TMC have been watching these news items:

• Neutral Sentiment: HC Wainwright kept its “Buy” rating, but cut its price target from $11.75 to $5.50. The lower target is a significant reassessment, although it still implies substantial upside from the cited share price. HC Wainwright rating and target
• Negative Sentiment: NOAA now expects to decide by mid-December whether to certify TMC USA’s consolidated application, later than the previously expected end of October. The delay prolongs uncertainty around the approvals needed for commercial mining. TMC third-quarter corporate update
• Negative Sentiment: The company reported just $0.08 million in revenue, used $19.4 million of cash in operations during the quarter, and had approximately $123 million available in cash and credit facilities at quarter-end. TMC has demonstrated its mining technology but still lacks permission to mine commercially, leaving its business prospects dependent on regulatory progress. Is TMC stock a buy?

Analyst Upgrades and Downgrades

A number of research firms have recently commented on TMC. Stifel Nicolaus initiated coverage on shares of TMC the metals in a report on Friday, August 28th. They issued a "buy" rating and a $10.00 target price for the company. HC Wainwright reduced their price target on shares of TMC the metals from $11.75 to $5.50 and set a "buy" rating on the stock in a research note on Friday. Zacks Research raised shares of TMC the metals from a "strong sell" rating to a "hold" rating in a report on Wednesday, November 4th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of TMC the metals in a research report on Thursday, October 15th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $8.88.

TMC the metals Price Performance

The company has a market capitalization of $1.01 billion, a price-to-earnings ratio of -3.14 and a beta of 2.22. The firm's fifty day moving average price is $3.25 and its 200-day moving average price is $4.67.

TMC the metals (NASDAQ:TMC - Get Free Report) last released its quarterly earnings data on Thursday, November 12th. The company reported ($0.06) earnings per share for the quarter, meeting the consensus estimate of ($0.06). The firm had revenue of $0.08 million for the quarter. On average, research analysts predict that TMC the metals company Inc. will post -0.38 earnings per share for the current year.

Hedge Funds Weigh In On TMC the metals

Several large investors have recently bought and sold shares of TMC. GK Wealth Management LLC acquired a new stake in shares of TMC the metals during the third quarter valued at about $29,000. Consolidated Capital Management LLC acquired a new position in shares of TMC the metals in the third quarter valued at approximately $38,000. Lazari Capital Management Inc. acquired a new position in shares of TMC the metals in the third quarter valued at approximately $38,000. Searle & CO. bought a new position in TMC the metals in the 3rd quarter valued at approximately $38,000. Finally, Brookstone Capital Management bought a new position in TMC the metals in the 3rd quarter valued at approximately $39,000. 4.39% of the stock is currently owned by institutional investors.

TMC the metals Company Profile

TMC the metals company Inc. is a deep-sea minerals exploration and development company focused on polymetallic nodules found on the ocean floor. The nodules contain metals including nickel, copper, cobalt and manganese, which are used in batteries, stainless steel and other industrial applications. The company's exploration activities are centered in the Clarion-Clipperton Zone of the Pacific Ocean. Through subsidiaries sponsored by Pacific island nations, TMC holds exploration contracts with the International Seabed Authority.

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