Strength Seen in Torchlight Energy Resources, Inc. (TRCH): Stock Adds 4.96 Percent Today

Torchlight Energy Resources, Inc. (NASDAQ:TRCH) could be one of the best stocks that investors may want to consider for their portfolio today as the company shares are trading 4.96% or 0.05 points up from last closing price of $1.01, reaching $1.0601 at last check. Any clue why there is so much of action in the TRCH stock? The share price has risen in 1 of the last 5 days and is down -0.98% over the past week. It will be exciting to see whether the stock manages to continue increasing or take a minor break for the next few days. The move came on solid volume too with far more shares changing hands than in a normal session. Trading activity as of this writing strengthened by 20,946 shares, and in total 187546 shares valued at $198818 were seen changing hands compared with 166600 shares valued at $168266 recorded at the previous session. You should take into consideration that a greater volume on higher prices causes bullish signal for the market. It shows the sentiment is in an uptrend and more and more traders want to enter in the TRCH stock.

Torchlight Energy Resources, Inc. (TRCH) shares have notched a 3-month decline of about -0.98%, but has still advanced 78.98% year to date. By comparison, the stock added 2.02% over the past 12 months, while it slipped -28.37% over the 1 month. The company’s market cap is around $75.8M, with its short interest ratio standing at 12.61%.

In the current trading session for TRCH, the stock witnessed two major price actions, it rose to a high of $1.0701 and was down as much as $1.02 at one point. The high recorded is very low when compared to their 52-week high which is $0.53. The 52-week high is now at -46.46 distance from current price. Their recent low of $1.98 represents a 99.25% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for TRCH is $2.85, this is above the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.

The stock of Torchlight Energy Resources, Inc. earned $-0.07 per share in the trailing 12 months and has a P/E ratio of -15.14. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 15.13 and lower compared to the sector’s average of 15.59. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. TRCH also has P/S multiple of 72.33. This is greater versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 0.63x.

TRCH‘s last price was down -13.81% as compared to the average trading price of 50 days recorded at $1.23 while enlarging the period to 200 trading days, the average closing price was $1.37. At present, there are 75.05 million in the total number of common shares owned by the public and among those 50.89 million shares have been available to trade. The percentage of shares being held by the company management was 35.38% while institutions stake was 9.3%. The company has generated negative returns on equity over the last 12 months (-27.6%). It managed to keep its gross profit margin at 40.5% over the past 12 months.

When assessing the full upside of the TRCH stock, there is another set of technicals that should be looked into and considered. Its -13.11% decline from moving average of $1.22 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 1.96 to the stock. With the beta been greater than one, this implies that the company shares are theoretically more volatile than the market, something that the traders definitely are keeping an eye on.

Most of the analysts surveyed by Thomson/First Call think quite highly of Torchlight Energy Resources, Inc. — 2 analysts rate the stock as a buy with another 0 rating it strong buy. There are 0 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $2.85 on shares of Torchlight Energy Resources, Inc. (NASDAQ:TRCH), which corresponds to 171.43% upside potential than its current market price of $1.0601 and implies potential despite the recent advance in the price. However, their current target price has fallen from $2.85 a month ago and is down handily from the consensus target of $2.85 a quarter ago.

In the last five years, the EPS of the company has been roughly 35.2%. Though the percentage looks encouraging, extra headwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will decrease annually by 0%. The revenue of the company has retreated at an average annualized rate of about -0.2 over the last five years. The company recently recorded a drop of -33.3%, but this figure is rather unattractive.

Let’s briefly check the hedge fund interest towards TRCH stock. Morgan Stanley added position in the company after it grew 45.6% or 113,203 shares of its common stock. The hedge fund now owns 164,823 shares worth $174,729, SEC documents show. Vanguard Group Inc. shored up assets in the stock as 1501321 shares have been purchased, increasing its stake by 29.4% to 1,942,710 shares which are currently valued at $2,059,467. In addition, BlackRock Inc. recently reported that it now owns 977,130 shares making a total of $1,035,856 based on the recent price. This refelects a change of 154.8% in their ownership.