TMC the Metals Company (TMC) Surges 2.59% on Analyst Upgrades, Institutional Buys as Nodule Reserves Validate $23.6B Potential

The shares of TMC the Metals Company Inc. (TMC) surged 2.59% on the latest trading session, marking the second consecutive day of gains. Over the past two days, the stock has rallied 11.77%, reaching an intraday high of 4.03% and hitting its highest level since October 2025. This upward momentum reflects renewed investor optimism amid strategic developments and shifting analyst sentiment.

Recent analyst activity has played a pivotal role in shaping market dynamics. Zacks Research upgraded TMC from "Strong Sell" to "Hold," while Wedbush raised its price target to $11.00 per share and assigned an "Outperform" rating. HC Wainwright maintained a "Buy" recommendation with a $7.25 target, contributing to a "Moderate Buy" consensus. These adjustments underscore confidence in TMC’s exploration of polymetallic nodules in the Clarion Clipperton Zone, a key asset for meeting global demand in critical minerals like nickel, cobalt, and copper.

Institutional investors have also bolstered their positions, with Wolverine Asset Management increasing its stake by 752.6% in Q2 2025 and Allworth Financial LP raising its holdings by 48% in Q1. Such moves signal growing institutional confidence in TMC’s long-term potential, despite mixed insider transactions. Directors Brendan May and Anthony O’Sullivan sold significant portions of their holdings, raising questions about short-term liquidity or risk management strategies. However, institutional buying has offset these sales, highlighting a nuanced market perception of TMC’s growth trajectory.

A critical catalyst for the stock’s recent performance was TMC’s announcement of its first-ever nodule reserves, backed by $23.6 billion in net present value studies. This milestone validates the economic viability of its deep-sea resources and positions the company as a key player in the energy transition. The exploration rights in the Clarion Clipperton Zone, rich in battery metals, align with surging demand for EVs and renewable infrastructure. Analysts suggest that accelerated commercial extraction timelines could further enhance investor appeal, though regulatory and operational hurdles remain unaddressed.

Despite these positives, TMC’s stock remains volatile, with a beta of 1.64, indicating heightened sensitivity to market swings. While the recent 6.5% rally on September 27, 2025, reflects improved sentiment, the company’s unprofitable operations and high valuation multiples (negative P/E of -14.93) highlight ongoing risks. Investors must balance the speculative nature of deep-sea mining with the potential for long-term gains as TMC navigates commercialization challenges and secures strategic partnerships.