TLDR
- Trilogy Metals stock hit a new 52-week high of $8.45 on Tuesday and closed at $8.79, up 18.29% from the previous close of $6.56.
- The company received $35.6 million in investment from the US government and obtained federal permits for its Ambler Access Project in Alaska.
- Raymond James upgraded the stock from “hold” to “moderate buy” on October 7th, while Cormark downgraded from “moderate buy” to “hold” on October 8th.
- Company insiders sold over 1 million shares worth $6.6 million in recent transactions, including Director Janice Stairs selling 50,613 shares and CFO Elaine Sanders selling 449,599 shares.
- The stock has a market cap of $1.60 billion, with institutional investors owning 16.75% of shares, including new positions from Envestnet Asset Management and DLD Asset Management.
Trilogy Metals stock climbed to a new 52-week high on Tuesday, reaching $8.45 during intraday trading. The stock closed at $8.79, representing an 18.29% increase from the previous close of $6.56.
Trading volume reached 33.95 million shares. This marks a substantial increase in activity for the Alaska-focused mining company.
The rally comes after the company received federal permits for its Ambler Access Project. The US government also committed $35.6 million in investment to support the venture.
The federal backing represents a key development for the company’s Alaska operations. Cash and equivalents stood at over $23 million, though the company reported negative free cash flow.
Analyst Reactions and Rating Changes
Raymond James Financial upgraded Trilogy Metals from “hold” to “moderate buy” on October 7th. The same day, Cowen maintained a “hold” rating on the shares.
Cormark downgraded the stock from “moderate buy” to “hold” on October 8th. TD Securities also kept its “hold” rating in a report released October 7th.
BMO Capital Markets maintained a “market perform” rating with a $5.50 price target. Currently, two analysts rate the stock as a buy while four have issued hold ratings.
The consensus rating stands at “hold” with an average price target of $7.75. The stock trades above this target following Tuesday’s surge.
The company’s 50-day moving average sits at $2.30. The 200-day moving average stands at $1.77, showing the recent price acceleration.
Insider Trading Activity
Director Janice Stairs sold 50,613 shares on October 9th at an average price of $6.56. The transaction totaled $332,021.28.
After the sale, Stairs directly owned 508,608 shares valued at $3,336,468.48. The trade represented a 9.05% decrease in her position.
CFO Elaine Sanders sold 449,599 shares on October 8th at an average price of $6.84. The total value reached $3,075,257.16.
Following the transaction, Sanders held 3,149,561 shares worth $21,542,997.24. This sale reduced her stake by 12.49%.
Over the past three months, insiders sold 1,014,506 shares worth $6,612,194. Company insiders own 15.20% of the stock overall.
The insider sales occurred as the stock price climbed toward its annual high. The timing of these transactions coincided with federal permit approvals.
Institutional investors own 16.75% of company shares. Envestnet Asset Management acquired a new stake during the first quarter worth about $396,000.
DLD Asset Management also purchased a new position worth approximately $388,000. Old West Investment Management increased its holdings by 61.1% during the first quarter.
Old West now owns 12,611,879 shares valued at $19,611,000 after adding 4,781,670 shares. Virtu Financial purchased a new stake worth about $83,000 in the first quarter.
Legacy Capital Group California bought a new position valued at roughly $232,000. These institutional moves occurred before the recent price surge.
The company maintains a market capitalization of $1.60 billion. The price-to-earnings ratio stands at -192.76 with a beta of 1.18.
Trilogy reported a net loss from continuing operations in recent earnings. The company faces typical challenges for mining operations in development stages.
The Ambler Access Project received presidential approval for federal permits. This regulatory clearance removes a major hurdle for the Alaska mining operations.
The $35.6 million government investment provides financial support for project development. Federal backing signals confidence in the resource potential of the Ambler region.
