Torchlight Energy Resources Inc. [NASDAQ: TRCH] gained 14.29% or 0.2 points to close at $1.60 with a heavy trading volume of 5973731 shares. The company report on April 16, 2021 that Torchlight Provides Update on Proposed Business Combination Timing.
Torchlight Energy Resources, Inc. (NASDAQ:TRCH), an oil and gas exploration company (“Torchlight”), announced that it is continuing to work towards the completion of the regulatory requirements necessary to consummate the previously announced business combination (the “Arrangement”) with Metamaterial Inc. (“Metamaterial”). Torchlight has filed its 2020 Annual Report on Form 10-K, parts of which are required to be incorporated by reference into the definitive proxy statement for the special meeting of Torchlight’s stockholders in connection with the Arrangement. Torchlight expects to file a revised preliminary proxy statement with the SEC shortly. Torchlight and Metamaterial have extended the date by which Torchlight must give notice of and call its special meeting of stockholders to April 30th, which Torchlight believes will provide enough time to clear the definitive proxy statement with the SEC, set a record date for the special meeting of stockholders, and mail the definitive proxy statement to Torchlight stockholders of record as of the record date.
Torchlight’s definitive proxy statement will announce the meeting date and record date for the special meeting. The record date to determine the Torchlight stockholders that will receive a dividend of the previously announced Series A Preferred Stock, which will entitle its holders to, among other things, receive dividends in connection with the sale of Torchlight’s oil and gas assets, will be determined after the special meeting is held. Metamaterial recently announced that its security holders have approved the special resolution relating to the Arrangement at Metamaterial’s annual general and special meeting.
It opened the trading session at $1.40, the shares rose to $1.65 and dropped to $1.37, the range by which the price of stock traded the whole day. The daily chart for TRCH points out that the company has recorded 433.33% gains over the past six months. However, it is still -661.9% lower than its most recent low trading price.
If we look at the average trading volume of 25.92M shares, TRCH reached to a volume of 5973731 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 0.23, with the Price to Sales ratio for TRCH stock in the period of the last 12 months amounting to 1286.88. The Price to Book ratio for the last quarter was 12.31, 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 -5.33. With this latest performance, TRCH shares dropped by -25.58% in over the last four-week period, additionally plugging by 433.33% over the last 6 months – not to mention a rise of 332.43% 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 40.50, with the RSI for the last a single of trading hit 39.49, and the three-weeks RSI is set at 43.20 for Torchlight Energy Resources Inc. [TRCH]. The present Moving Average for the last 50 days of trading for this stock 2.2594, while it was recorded at 1.5580 for the last single week of trading, and 0.9537 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 -2245.46 and a Gross Margin at -421.73. Torchlight Energy Resources Inc.’s Net Margin is presently recorded at -6609.76.
Return on Total Capital for TRCH is now -12.94, given the latest momentum, and Return on Invested Capital for the company is -45.54. Return on Equity for this stock declined to -92.26, with Return on Assets sitting at -34.87. 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 130.91. Additionally, TRCH Total Debt to Total Capital is recorded at 56.69, with Total Debt to Total Assets ending up at 51.09. Long-Term Debt to Equity for the company is recorded at 130.91, with the Long-Term Debt to Total Capital now at 56.69.
Reflecting on the efficiency of the workforce at the company, Torchlight Energy Resources Inc. [TRCH] managed to generate an average of -$3,195,474 per employee. Receivables Turnover for the company is 0.48 with a Total Asset Turnover recorded at a value of 0.01.Torchlight Energy Resources Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.50 and a Current Ratio set at 0.50.
An analysis of insider ownership at Torchlight Energy Resources Inc. [TRCH]
There are presently around $10 million, or 4.90% 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 $1.96 million in TRCH stocks shares; and BLACKROCK INC., currently with $1.2 million in TRCH stock with ownership of nearly 0.718% 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 15 institutional holders increased their position in Torchlight Energy Resources Inc. [NASDAQ:TRCH] by around 990,131 shares. Additionally, 11 investors decreased positions by around 200,563 shares, while 12 investors held positions by with 5,870,555 shares. The mentioned changes placed institutional holdings at 7,061,249 shares, according to the latest SEC report filing. TRCH stock had 9 new institutional investments in for a total of 130,973 shares, while 6 institutional investors sold positions of 125,399 shares during the same period.