In a recently disclosed Form 4 filing with the Securities and Exchange Commission, Gregory Stone, the Chief Ocean Scientist at TMC the metals Co Inc. (NASDAQ:TMC), sold a substantial amount of company shares. The transactions were conducted over several dates, culminating in the sale of 64,489 common shares and generating over $70,000 in proceeds for Stone. The first sale took place on September 28, 2023, where 14,489 shares were sold at an average price of $1.0026. Additional sales occurred on December 4 and December 22, 2023, with 25,000 shares sold each day at average prices of $1.1624 and $1.0957, respectively. The December transactions ranged in price from $1.09 to $1.17, as detailed in the footnotes of the filing. Despite the significant sales, Stone retained 320,876 shares in the company following the transactions.
The Incentive Plan
Aside from the sales, the Form 4 filing also disclosed an award of 12,414 restricted stock units (RSUs) to Stone on March 20, 2024, as part of TMC’s short-term incentive plan. These RSUs were granted at a price of $0.00 and vested immediately upon issuance, indicating that they were awarded rather than purchased. The filing also outlined Stone’s commitment to providing full details of the sales transactions upon request by the SEC staff, the issuer, or a security holder of the issuer.
Analysis and Insights
Investors and market observers frequently examine insider transactions, such as those detailed in Form 4 filings, to gain perspective on executives’ sentiments toward their company’s stock. In the case of TMC the metals Co Inc., Gregory Stone’s decision to reduce his stake in the company may raise questions about TMC’s financial standing and market performance. According to InvestingPro data, TMC boasts a market capitalization of approximately $499.38 million and is currently trading at a high Price / Book multiple of 9.02.
Despite a negative return on assets of -133.0% in the last twelve months as of Q1 2023, TMC has exhibited strong returns over the short and medium term. The company delivered a 21.64% price total return in the last month and a notable 50.93% price total return in the last six months. Moreover, TMC’s stock soared with an 89.27% price total return over the last year, reflecting positive performance. However, analysts remain cautious regarding TMC’s profitability prospects for the current year.
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The insider transactions involving Gregory Stone at TMC the metals Co Inc. shed light on the company’s stock performance and future outlook. Investors are encouraged to utilize available resources, like InvestingPro, to make informed decisions regarding their investment strategies.