Torchlight Energy Resources Inc. [TRCH] is -62.52% lower this YTD. Is it still time to buy?

Torchlight Energy Resources Inc. [NASDAQ: TRCH] loss -7.53% or -0.03 points to close at $0.28 with a heavy trading volume of 1260761 shares. The company report on August 28, 2020 that Torchlight Announces Drilling Completion on New Hazel Project Horizontal Well.

Torchlight Energy Resources, Inc. (NASDAQ:TRCH) (“Torchlight” or the “Company”), today reported that the recently announced well drilled by the option holders on the Hazel acreage has been drilled and cased. The rig will be released and preparations made for the frac to be delivered in early October. The horizontal portion of the well was successfully steered in the Wolfcamp A zone from start to finish and reached an approximate horizontal length of 7500 feet.

“It is positive news that the Flying B Ranch #4H was drilled successfully and stayed in zone to the desired horizontal length,” stated John Brda CEO of Torchlight. “The stimulation on this well will be significantly larger with 3200 pounds of sand per foot in order to maximize the potential production from the wellbore.”.

It opened the trading session at $0.308, the shares rose to $0.3081 and dropped to $0.27, the range by which the price of stock traded the whole day. The daily chart for TRCH points out that the company has recorded -58.10% loss over the past six months. However, it is still 0.0% lower than its most recent low trading price.

If we look at the average trading volume of 1.11M shares, TRCH reached to a volume of 1260761 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Torchlight Energy Resources Inc. [TRCH]:

ROTH Capital have made an estimate for Torchlight Energy Resources Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on March 13, 2020.

The Average True Range (ATR) for Torchlight Energy Resources Inc. is set at 0.03, with the Price to Sales ratio for TRCH stock in the period of the last 12 months amounting to 88.58. The Price to Book ratio for the last quarter was 1.50, with the Price to Cash per share for the same quarter was set at 0.00.

Trading performance analysis for TRCH stock

Torchlight Energy Resources Inc. [TRCH] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -6.59. With this latest performance, TRCH shares dropped by -10.97% in over the last four-week period, additionally sinking by -58.10% over the last 6 months – not to mention a drop of -75.86% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for TRCH stock in for the last two-week period is set at 38.92, with the RSI for the last a single of trading hit 35.97, and the three-weeks RSI is set at 41.29 for Torchlight Energy Resources Inc. [TRCH]. The present Moving Average for the last 50 days of trading for this stock 0.3321, while it was recorded at 0.3077 for the last single week of trading, and 0.5032 for the last 200 days.

Torchlight Energy Resources Inc. [TRCH]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Torchlight Energy Resources Inc. [TRCH] shares currently have an operating margin of -987.84 and a Gross Margin at -549.17. Torchlight Energy Resources Inc.’s Net Margin is presently recorded at -1318.49.

Return on Total Capital for TRCH is now -19.98, given the latest momentum, and Return on Invested Capital for the company is -31.32. Return on Equity for this stock declined to -59.47, with Return on Assets sitting at -24.90. When it comes to the capital structure of this company, Torchlight Energy Resources Inc. [TRCH] has a Total Debt to Total Equity ratio set at 151.66. Additionally, TRCH Total Debt to Total Capital is recorded at 60.26, with Total Debt to Total Assets ending up at 55.83. Long-Term Debt to Equity for the company is recorded at 78.80, with the Long-Term Debt to Total Capital now at 31.31.

Reflecting on the efficiency of the workforce at the company, Torchlight Energy Resources Inc. [TRCH] managed to generate an average of -$4,919,698 per employee. Receivables Turnover for the company is 1.46 with a Total Asset Turnover recorded at a value of 0.02.Torchlight Energy Resources Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.10 and a Current Ratio set at 0.10.

Torchlight Energy Resources Inc. [TRCH]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Torchlight Energy Resources Inc. posted -0.02/share EPS, while the average EPS was predicted by analysts to be reported at -0.02/share. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for TRCH.

An analysis of insider ownership at Torchlight Energy Resources Inc. [TRCH]

There are presently around $2 million, or 14.30% of TRCH stock, in the hands of institutional investors. The top three institutional holders of TRCH stocks are: VANGUARD GROUP INC with ownership of 2,014,583, which is approximately -0.228% of the company’s market cap and around 25.45% of the total institutional ownership; AMG NATIONAL TRUST BANK, holding 1,299,855 shares of the stock with an approximate value of $0.37 million in TRCH stocks shares; and BLACKROCK INC., currently with $0.24 million in TRCH stock with ownership of nearly -14.175% of the company’s market capitalization.

Positions in Torchlight Energy Resources Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 10 institutional holders increased their position in Torchlight Energy Resources Inc. [NASDAQ:TRCH] by around 290,909 shares. Additionally, 12 investors decreased positions by around 366,757 shares, while 15 investors held positions by with 5,457,546 shares. The mentioned changes placed institutional holdings at 6,115,212 shares, according to the latest SEC report filing. TRCH stock had 7 new institutional investments in for a total of 210,422 shares, while 3 institutional investors sold positions of 54,880 shares during the same period.

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