TMC the metals (NASDAQ:TMC) Shares Gap Up - Should You Buy?

Key Points

• Shares of TMC the metals gapped up premarket, opening at $6.56 vs. the prior close of $5.83 and trading around $6.55 on ~6.47M shares, a roughly 10.7% gain.
• Analyst coverage is mixed—three Buy, one Hold and one Sell—with a MarketBeat consensus of Hold and an average target price of $7.42 (HC Wainwright raised its target to $7.50).
• Risks include weak fundamentals and insider selling: TMC missed EPS (reported ($0.14) vs. ($0.06) expected) and has a negative P/E, while insider Erika Ilves sold 1,591,485 shares (reducing her stake by ~58%), though insiders still own 27.6%.

Shares of TMC the metals company Inc. (NASDAQ:TMC - Get Free Report) gapped up prior to trading on Friday . The stock had previously closed at $5.83, but opened at $6.56. TMC the metals shares last traded at $6.55, with a volume of 6,472,659 shares trading hands.

Wall Street Analysts Forecast Growth

TMC has been the topic of several research reports. HC Wainwright increased their target price on TMC the metals from $7.25 to $7.50 and gave the stock a "buy" rating in a research note on Friday, November 14th. Weiss Ratings reissued a "sell (d-)" rating on shares of TMC the metals in a research note on Wednesday, October 8th. Finally, Zacks Research raised shares of TMC the metals from a "strong sell" rating to a "hold" rating in a research note on Thursday, November 13th. Three equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $7.42.

TMC the metals Stock Up 10.7%

The company's fifty day moving average is $6.84 and its two-hundred day moving average is $6.00. The stock has a market cap of $2.67 billion, a price-to-earnings ratio of -8.38 and a beta of 1.71.

TMC the metals (NASDAQ:TMC - Get Free Report) last posted its quarterly earnings results on Thursday, November 13th. The company reported ($0.14) EPS for the quarter, missing the consensus estimate of ($0.06) by ($0.08). Sell-side analysts predict that TMC the metals company Inc. will post -0.22 EPS for the current fiscal year.

Insider Activity at TMC the metals

In related news, insider Erika Ilves sold 1,591,485 shares of the stock in a transaction on Monday, September 22nd. The stock was sold at an average price of $5.77, for a total value of $9,182,868.45. Following the transaction, the insider owned 1,145,792 shares of the company's stock, valued at $6,611,219.84. This represents a 58.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders own 27.60% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in TMC. Sprott Inc. acquired a new position in TMC the metals in the first quarter valued at approximately $26,000. NewEdge Advisors LLC purchased a new stake in shares of TMC the metals during the 2nd quarter worth approximately $28,000. Wolverine Asset Management LLC boosted its holdings in shares of TMC the metals by 752.6% in the 2nd quarter. Wolverine Asset Management LLC now owns 4,945 shares of the company's stock valued at $33,000 after buying an additional 4,365 shares in the last quarter. Sunbelt Securities Inc. purchased a new position in shares of TMC the metals in the 3rd quarter valued at $34,000. Finally, KBC Group NV acquired a new stake in TMC the metals during the 2nd quarter worth $37,000. Hedge funds and other institutional investors own 4.39% of the company's stock.

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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