In a recent filing with the Securities and Exchange Commission, TMC the metals Co Inc. (NYSE:TMC) reported that its Chief Financial Officer, Craig Shesky, has sold a significant portion of company stock. The transaction, which took place on March 22, 2024, involved the sale of 233,424 common shares at an average price of $1.6087, totaling over $375,509.
The sale was conducted to cover tax withholding obligations related to the vesting of Restricted Stock Units (RSUs) granted to Shesky as part of the company's incentive plans. According to the filing, the shares were sold at prices ranging from $1.58 to $1.65 per share. This "sell to cover" provision is a common practice for executives to fulfill tax liabilities without the need for an out-of-pocket expense.
Prior to the sale, the CFO acquired 187,663 common shares upon the vesting of RSUs on March 20, 2024, as part of the company's long-term incentive plan. Additionally, Shesky received 213,362 common shares as part of TMC's short-term incentive plan, which vested upon issuance.
Following these transactions, the CFO's direct ownership in the company stands at 947,242 common shares. It's worth noting that the RSUs granted as part of the long-term incentive plan are subject to a vesting schedule that requires continued service through each vesting date, with further vesting set to occur on the anniversaries of the grant dates in 2025 and 2026.
Investors often keep a close eye on insider transactions as they can provide insights into an executive's view of the company's future prospects. However, transactions like these, which are related to tax obligations, may not always signal a change in an executive's confidence in the company.
TMC the metals Co Inc., formerly known as Sustainable Opportunities Acquisition Corp., is a metal mining company with a focus on energy and transportation. The company's business address is located in Vancouver, Canada.
InvestingPro Insights
TMC the metals Co Inc. (NYSE:TMC), while navigating executive stock sales, also presents a mixed bag of financial metrics and market performance. According to real-time data from InvestingPro, TMC has a market capitalization of $499.38 million, reflecting its standing in the industry. However, investors should note the company's negative P/E ratio, sitting at -3.29, and an adjusted P/E ratio for the last twelve months as of Q3 2023 at -3.38, indicating that the company is not currently profitable.
The company's Price / Book ratio for the same period stands at a high 9.02, which suggests that the stock might be trading at a premium compared to its book value. This aligns with one of the InvestingPro Tips indicating that TMC is trading at a high Price / Book multiple. On the performance front, TMC has shown a strong return over the last three months with a 46.85% price total return, and an impressive 89.27% return over the last year, highlighting a potential investor confidence in the company's growth prospects.
While the recent sale by CFO Craig Shesky might not necessarily indicate a lack of confidence in TMC's future, the company's financial health, as per other InvestingPro Tips, reveals that analysts are not expecting TMC to be profitable this year and that the stock price movements have been quite volatile. These factors could be crucial for investors to consider when assessing the company's long-term value and stability.
For those interested in a deeper analysis, there are additional InvestingPro Tips available that could provide further insights into TMC's financial health and market performance. To explore these tips and enhance your investment strategy, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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