Torchlight Energy Resources Inc. (TRCH) shares are trading at higher $0.28 and the avg recommendation for the stock is Hold.
To add more color to this target, the company’s high over the last year is $1.27 and the low is $0.25. Over the last 52 weeks, TRCH is down -76.38% while the S&P 500 is up 13.33%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, TRCH reported a profit of $-3.03 million. Torchlight Energy Resources Inc. also saw revenues decrease to $46000.0. In addition, TRCH has free cash flow of -$5.91 million as of 06-2020. The company’s EBITDA came in at -$2.48 million which compares well with its peers.
TRCH Return on Equity (ROE) is -87.50%, and its Return on Assets is -37.30%. All told, it is clear that, TRCH needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. TRCH has a short ratio of 5.66 and outstanding shares of 84.86M.
TRCH has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.61 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.18. Torchlight Energy Resources Inc. TRCH also noted assets of $34.25 million at the end of the last quarter. Investors should also keep an eye on sector updates as TRCH has historically followed its peers on positive news.
All told, Torchlight Energy Resources Inc. TRCH has strung together solid data and demonstrated underlying fundamentals. At its current valuation, TRCH represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Torchlight Energy Resources Inc. TRCH is now commanding a market cap of 29.21M and a float of 78.27M. TRCH is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of TRCH stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in TRCH, either long or short, and we have not been compensated for this article.