Investors Buy High Volume of Call Options on PureCycle Technologies (NASDAQ:PCT)

Key Points

• Unusual options activity: Traders purchased 40,909 call options on PureCycle Technologies, roughly 220% above the average call volume.
• Stock and financial performance remain weak: Shares fell 0.5% to $4.41, near their 52-week low, while the company reported a larger-than-expected quarterly loss and lower-than-expected revenue.
• Analyst sentiment is mixed: Ratings range from Buy to Sell, producing a consensus “Hold” rating and an average price target of $11.75, substantially above the current share price.

PureCycle Technologies, Inc. (NASDAQ:PCT - Get Free Report) was the recipient of some unusual options trading on Wednesday. Stock traders acquired 40,909 call options on the stock. This is an increase of approximately 220% compared to the average volume of 12,797 call options.

PureCycle Technologies Stock Down 0.5%

Shares of PureCycle Technologies stock traded down $0.02 during trading on Wednesday, reaching $4.41. The stock had a trading volume of 10,635,089 shares, compared to its average volume of 4,789,349. The company has a market capitalization of $885.99 million, a price-to-earnings ratio of -3.02 and a beta of 2.57. PureCycle Technologies has a 52 week low of $4.28 and a 52 week high of $15.49. The stock has a fifty day moving average price of $6.29 and a two-hundred day moving average price of $7.49. The company has a current ratio of 2.60, a quick ratio of 2.42 and a debt-to-equity ratio of 27.37.

PureCycle Technologies (NASDAQ:PCT - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported ($0.80) EPS for the quarter, missing the consensus estimate of ($0.29) by ($0.51). The business had revenue of $4.51 million for the quarter, compared to analyst estimates of $6.11 million. PureCycle Technologies had a negative return on equity of 612.39% and a negative net margin of 1,618.84%. Sell-side analysts predict that PureCycle Technologies will post -0.9 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on PCT shares. Cantor Fitzgerald cut their target price on shares of PureCycle Technologies from $14.00 to $12.00 and set an "overweight" rating on the stock in a report on Friday, August 7th. Northland Securities set a $13.00 target price on PureCycle Technologies in a research note on Friday, June 12th. Weiss Ratings reiterated a "sell (e+)" rating on shares of PureCycle Technologies in a report on Wednesday, September 2nd. Finally, Alembic Global Advisors set a $16.00 price objective on PureCycle Technologies in a research report on Tuesday, June 16th. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, PureCycle Technologies currently has an average rating of "Hold" and a consensus target price of $11.75.

Insider Transactions at PureCycle Technologies

In related news, Director Fernando Musa bought 15,479 shares of the firm's stock in a transaction dated Friday, September 4th. The stock was bought at an average cost of $6.38 per share, for a total transaction of $98,756.02. Following the transaction, the director owned 175,983 shares of the company's stock, valued at $1,122,771.54. This represents a 9.64% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 18.80% of the company's stock.

Institutional Trading of PureCycle Technologies

Several institutional investors and hedge funds have recently bought and sold shares of PCT. SHP Wealth Management bought a new position in PureCycle Technologies in the fourth quarter valued at approximately $43,000. Cassaday & Co Wealth Management LLC acquired a new stake in shares of PureCycle Technologies in the 1st quarter valued at approximately $33,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of PureCycle Technologies in the second quarter valued at $82,000. Sigma Planning Corp bought a new position in shares of PureCycle Technologies in the first quarter valued at $53,000. Finally, Proficio Capital Partners LLC acquired a new position in PureCycle Technologies during the second quarter worth $91,000. Institutional investors own 63.01% of the company's stock.

About PureCycle Technologies

PureCycle Technologies, Inc is a chemical recycling company that develops and operates technology designed to convert waste polypropylene plastic into recycled polypropylene resin. Unlike conventional mechanical recycling, which can leave behind colors, odors and other contaminants, PureCycle's proprietary purification process is intended to separate impurities from polypropylene and produce a recycled material with properties similar to virgin resin.

The company's products are recycled polypropylene pellets and related materials that can be used in applications such as packaging, consumer products, automotive components and other molded plastic goods.

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