TMC the metals (NASDAQ:TMC) Shares Gap Down on Disappointing Earnings

Key Points

• TMC the Metals Company Inc. saw its shares drop to $4.91 after a disappointing earnings report, missing EPS expectations by $0.01.
• Analyst ratings have varied; Wedbush upgraded the stock from "neutral" to "outperform" with a target price increase to $11.00, while HC Wainwright set a new target of $7.25.
• Insiders have sold a total of 233,521 shares in the last 90 days, leading to a significant decrease in ownership among key directors.

TMC the metals company Inc. (NASDAQ:TMC - Get Free Report) shares gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $5.41, but opened at $5.00. TMC the metals shares last traded at $4.91, with a volume of 3,579,407 shares traded.

The company reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.01).

Analyst Upgrades and Downgrades

TMC has been the topic of a number of recent research reports. Wedbush raised TMC the metals from a "neutral" rating to an "outperform" rating and upped their target price for the company from $6.00 to $11.00 in a research note on Wednesday, June 25th. HC Wainwright increased their price target on TMC the metals from $5.50 to $7.25 and gave the company a "buy" rating in a report on Wednesday, August 6th.

Insider Activity at TMC the metals

In related news, Director Brendan May sold 44,204 shares of the firm's stock in a transaction that occurred on Thursday, June 26th. The shares were sold at an average price of $7.38, for a total transaction of $326,225.52. Following the transaction, the director owned 197,586 shares in the company, valued at $1,458,184.68. This trade represents a 18.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Anthony O'sullivan sold 164,317 shares of TMC the metals stock in a transaction that occurred on Wednesday, May 21st. The stock was sold at an average price of $4.49, for a total transaction of $737,783.33. Following the completion of the transaction, the insider owned 1,125,667 shares in the company, valued at approximately $5,054,244.83. This trade represents a 12.74% decrease in their position. The disclosure for this sale can be found here. Insiders sold 233,521 shares of company stock worth $1,259,009 in the last 90 days. 27.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Allworth Financial LP boosted its position in shares of TMC the metals by 48.0% during the 1st quarter. Allworth Financial LP now owns 14,796 shares of the company's stock valued at $25,000 after acquiring an additional 4,796 shares in the last quarter. Sprott Inc. acquired a new position in TMC the metals in the first quarter valued at about $26,000. Raymond James Financial Inc. acquired a new position in shares of TMC the metals during the fourth quarter worth approximately $28,000. NewEdge Advisors LLC acquired a new position in shares of TMC the metals during the second quarter worth approximately $28,000. Finally, Wolverine Asset Management LLC lifted its position in shares of TMC the metals by 752.6% during the second quarter. Wolverine Asset Management LLC now owns 4,945 shares of the company's stock worth $33,000 after purchasing an additional 4,365 shares in the last quarter. Institutional investors own 4.39% of the company's stock.

TMC the metals Price Performance

The firm has a market capitalization of $1.72 billion, a P/E ratio of -20.54 and a beta of 1.59. The stock's 50 day moving average is $6.29 and its two-hundred day moving average is $3.81.

TMC the metals Company Profile

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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