Torchlight Energy Resources Inc. [TRCH] is 254.29% higher this YTD. Is it still time to buy?

Torchlight Energy Resources Inc. [NASDAQ: TRCH] price surged by 2.06 percent to reach at $0.05. The company report on February 22, 2021 that Torchlight Loans Metamaterial US$10,000,000, Allowing Metamaterial to Execute on Business Plan in Advance of Shareholder Votes.

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Torchlight Energy Resources, Inc. (NASDAQ:TRCH), an oil and gas exploration company (“Torchlight”) and Metamaterial Inc. (“META”) (CSE:MMAT), a developer of high-performance functional materials and nanocomposites, announced that, in accordance with the terms of the previously announced Arrangement Agreement (the “Arrangement Arrangement”) between Torchlight and META, pursuant to which Torchlight and META will complete a business combination (the “Arrangement”), Torchlight has loaned US$10,000,000 to META evidenced by an unsecured convertible promissory note (the “Promissory Note”). The Promissory Note bears interest at 8% per annum, with all unpaid principal and interest due in one lump sum payment on February 18, 2022 (the “Maturity Date”). If the Arrangement Agreement is terminated or expires without the completion of the Arrangement, Torchlight will have the right to convert all or any portion of the principal amount and any accrued but unpaid interest under the Promissory Note into the common shares of META (the “Common Shares”) at a conversion price of C$2.80 per Common Share (subject to adjustment as described in the Promissory Note). Further, if the Arrangement is not completed, META will be obligated to repay to Torchlight the total unpaid balance of the principal and interest under the Promissory Note, to the extent not converted into Common Shares, on the Maturity Date.

META intends to use approximately US$5,000,000 of the proceeds from the loan made pursuant to the Promissory Note to accelerate its acquisition of certain pilot scale production equipment to expand its roll-to-roll product family production capabilities, support META’s on-going development of optical products for targeted use in life sciences applications, and expand its metaOptix™ product line for its e-commerce business. The remainder will be used for general corporate purposes including working capital and merger related costs.

A sum of 23371106 shares traded at recent session while its average daily volume was at 23.83M shares. Torchlight Energy Resources Inc. shares reached a high of $2.57 and dropped to a low of $2.15 until finishing in the latest session at $2.48.

Guru’s Opinion on 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 0.56, with the Price to Sales ratio for TRCH stock in the period of the last 12 months amounting to 1155.02. The Price to Book ratio for the last quarter was 15.50, with the Price to Cash per share for the same quarter was set at 0.00.

TRCH Stock Performance Analysis:

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 -20.51. With this latest performance, TRCH shares gained by 57.96% in over the last four-week period, additionally plugging by 703.11% over the last 6 months – not to mention a rise of 288.23% 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 51.88, with the RSI for the last a single of trading hit 47.35, and the three-weeks RSI is set at 54.44 for Torchlight Energy Resources Inc. [TRCH]. The present Moving Average for the last 50 days of trading for this stock 1.63, while it was recorded at 2.82 for the last single week of trading, and 0.66 for the last 200 days.

Insight into Torchlight Energy Resources Inc. Fundamentals:

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.

TRCH Stock EPS

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.

Torchlight Energy Resources Inc. [TRCH] Insider Position Details

There are presently around $18 million, or 5.00% of TRCH stock, in the hands of institutional investors. The top three institutional holders of TRCH stocks are: VANGUARD GROUP INC with ownership of 3,026,300, which is approximately 30.884% of the company’s market cap and around 8.30% of the total institutional ownership; AMG NATIONAL TRUST BANK, holding 1,399,855 shares of the stock with an approximate value of $3.47 million in TRCH stocks shares; and BLACKROCK INC., currently with $2.13 million in TRCH stock with ownership of nearly 0.718% of the company’s market capitalization.

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Positions in Torchlight Energy Resources Inc. stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 15 institutional holders increased their position in Torchlight Energy Resources Inc. [NASDAQ:TRCH] by around 1,004,631 shares. Additionally, 10 investors decreased positions by around 185,063 shares, while 13 investors held positions by with 5,901,555 shares. The mentioned changes placed institutional holdings at 7,091,249 shares, according to the latest SEC report filing. TRCH stock had 9 new institutional investments in for a total of 145,473 shares, while 5 institutional investors sold positions of 109,899 shares during the same period.

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