TMC Should I Buy
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TMC The Metals Company Inc. is not a strong buy at the moment for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. While the company has positive news catalysts and long-term growth potential, the technical indicators are bearish, insider selling is significant, and there are no strong trading signals or recent congress trading data to support an immediate buy decision. It is better to wait for clearer bullish signals or improved technical trends before considering an entry.
The MACD is negative and contracting, RSI is neutral at 40.419, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The price is below the pivot level of 5.257, with key support at 4.848 and resistance at 5.665. Overall, the technical indicators suggest a bearish trend.
The U.S. Department of Defense supports TMC's domestic mining license, which could lead to federal funding and procurement opportunities. The company is advancing plans for a domestic processing facility in Texas, potentially benefiting from federal grants. TMC's stock has risen over 23% this year, reflecting market optimism about its deep-sea mining potential.
Insiders are selling heavily, with a 367.11% increase in selling activity over the last month. Regulatory hurdles from the International Seabed Authority and the lack of U.S. ratification of the UN Convention on the Law of the Sea pose significant risks. Technical indicators are bearish, and there is no recent congress trading data or strong trading signals to support a buy.
No financial data is available for the latest quarter. However, the company is making progress with its commercial production application and feasibility studies for a processing facility, which could drive future growth.
Maxim initiated coverage with a Buy rating and a $10 price target, while Wedbush lowered its price target from $11 to $8 but maintained an Outperform rating. Analysts remain optimistic about the company's long-term strategy and potential for securing a commercial permit by 2026.
