TMC the metals (NASDAQ:TMC) Shares Gap Down - Here's Why

Key Points

• TMC the metals company Inc. saw its stock price decline from a previous close of $8.69 to an opening price of $8.12, ultimately trading at $8.14 with over 3.8 million shares exchanged.
• Despite a recent rating downgrade to "strong sell" by Zacks Research, analysts have mixed views with three rating it as "buy" and setting an average target price of $7.33.
• Insiders have sold significant shares recently, with Anthony O'sullivan and Erika Ilves decreasing their ownership by 18.17% and 58.14%, respectively, indicating potential concerns about the company's outlook.

TMC the metals company Inc. (NASDAQ:TMC - Get Free Report)'s stock price gapped down before the market opened on Friday . The stock had previously closed at $8.69, but opened at $8.12. TMC the metals shares last traded at $8.14, with a volume of 3,897,056 shares traded.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on TMC. Weiss Ratings reissued a "sell (d-)" rating on shares of TMC the metals in a report on Wednesday, October 8th. HC Wainwright restated a "buy" rating and set a $7.25 target price on shares of TMC the metals in a research report on Monday, August 18th. Wedbush upgraded TMC the metals from a "neutral" rating to an "outperform" rating and raised their target price for the stock from $6.00 to $11.00 in a research report on Wednesday, June 25th. Finally, Zacks Research downgraded TMC the metals from a "hold" rating to a "strong sell" rating in a research report on Wednesday. Three research analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, TMC the metals has a consensus rating of "Hold" and an average price target of $7.33.

TMC the metals Stock Down 5.4%

The company has a market cap of $3.34 billion, a P/E ratio of -22.31 and a beta of 1.70. The business has a 50-day moving average price of $6.26 and a two-hundred day moving average price of $5.22.

TMC the metals (NASDAQ:TMC - Get Free Report) last released its earnings results on Thursday, August 14th. The company reported ($0.07) earnings per share for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.01). As a group, sell-side analysts expect that TMC the metals company Inc. will post -0.22 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Anthony O'sullivan sold 250,000 shares of TMC the metals stock in a transaction on Tuesday, August 26th. The stock was sold at an average price of $5.25, for a total transaction of $1,312,500.00. Following the completion of the sale, the insider directly owned 1,125,667 shares of the company's stock, valued at $5,909,751.75. The trade was a 18.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Erika Ilves sold 1,591,485 shares of the business's stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $5.77, for a total value of $9,182,868.45. Following the completion of the transaction, the insider directly owned 1,145,792 shares of the company's stock, valued at approximately $6,611,219.84. The trade was a 58.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. 27.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Old West Investment Management LLC boosted its position in shares of TMC the metals by 100.0% during the first quarter. Old West Investment Management LLC now owns 4,270,076 shares of the company's stock worth $7,345,000 after buying an additional 2,135,038 shares during the period. Baird Financial Group Inc. raised its holdings in TMC the metals by 35.1% during the first quarter. Baird Financial Group Inc. now owns 2,946,027 shares of the company's stock worth $5,067,000 after acquiring an additional 766,167 shares in the last quarter. Jump Financial LLC bought a new stake in TMC the metals during the second quarter worth about $6,216,000. BNP Paribas Financial Markets bought a new stake in TMC the metals in the second quarter valued at approximately $3,133,000. Finally, Mirador Capital Partners LP raised its stake in TMC the metals by 306.1% in the third quarter. Mirador Capital Partners LP now owns 449,990 shares of the company's stock valued at $2,866,000 after buying an additional 339,174 shares during the period. 4.39% of the stock is owned by institutional investors and hedge funds.

About TMC the metals

TMC the metals company Inc, a deep-sea minerals exploration company, focuses on the collection, processing, and refining of polymetallic nodules found on the seafloor in California. It primarily explores for nickel, cobalt, copper, and manganese products. The company holds exploration and commercial rights in three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean.

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