Torchlight Energy Resources Inc. [NASDAQ: TRCH] stock went on a downward path that fall over -8.84% on Friday, amounting to a one-week price increase of more than 16.53%. 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.
Over the last 12 months, TRCH stock rose by 412.73%. The average equity rating for TRCH stock is currently 3.00, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $337.11 million, with 145.31 million shares outstanding and 121.48 million shares in the current float. Compared to the average trading volume of 24.89M shares, TRCH stock reached a trading volume of 14214729 in the most recent trading day, which is why market watchdogs consider the stock to be active.
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 0.23, with the Price to Sales ratio for TRCH stock in the period of the last 12 months amounting to 1685.55. The Price to Book ratio for the last quarter was 16.27, 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] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 16.53. With this latest performance, TRCH shares gained by 15.57% in over the last four-week period, additionally plugging by 624.32% over the last 6 months – not to mention a rise of 412.73% 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 55.66, with the RSI for the last a single of trading hit 59.41, and the three-weeks RSI is set at 53.42 for Torchlight Energy Resources Inc. [TRCH]. The present Moving Average for the last 50 days of trading for this stock 2.14, while it was recorded at 2.17 for the last single week of trading, and 1.03 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 -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.
Torchlight Energy Resources Inc. [TRCH] Insider Position Details
There are presently around $15 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 $2.96 million in TRCH stocks shares; and BLACKROCK INC., currently with $1.82 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 18 institutional holders increased their position in Torchlight Energy Resources Inc. [NASDAQ:TRCH] by around 1,000,848 shares. Additionally, 12 investors decreased positions by around 205,563 shares, while 11 investors held positions by with 5,883,050 shares. The mentioned changes placed institutional holdings at 7,089,461 shares, according to the latest SEC report filing. TRCH stock had 11 new institutional investments in for a total of 141,678 shares, while 6 institutional investors sold positions of 125,399 shares during the same period.