PureCycle Technologies (NASDAQ:PCT) Reaches New 52-Week Low - Here's Why

Key Points

• PureCycle Technologies shares fell 4.9% to a new 52-week low of $4.34, well below their 50-day and 200-day moving averages of $6.29 and $7.49, respectively.
• The company reported a quarterly loss of $0.80 per share, missing the $0.29 consensus estimate, while revenue of $4.51 million also fell short of expectations.
• Analysts have a mixed outlook, resulting in an average “Hold” rating and an $11.75 price target; meanwhile, director Fernando Musa purchased nearly $99,000 of shares, and insiders own 18.8% of the company.

PureCycle Technologies, Inc. (NASDAQ:PCT - Get Free Report) shares hit a new 52-week low during trading on Wednesday. The company traded as low as $4.34 and last traded at $4.43, with a volume of 6268632 shares trading hands. The stock had previously closed at $4.66.

Wall Street Analysts Forecast Growth

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

PureCycle Technologies Trading Down 4.9%

The firm has a market cap of $889.99 million, a price-to-earnings ratio of -3.03 and a beta of 2.57. The company has a 50-day moving average price of $6.29 and a 200 day moving average price of $7.49. The company has a quick ratio of 2.42, a current ratio of 2.60 and a debt-to-equity ratio of 27.37.

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

Insider Activity

In related news, Director Fernando Musa purchased 15,479 shares of the stock in a transaction dated Friday, September 4th. The shares were acquired at an average cost of $6.38 per share, for a total transaction of $98,756.02. Following the acquisition, the director directly owned 175,983 shares in the company, valued at approximately $1,122,771.54. The trade was a 9.64% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 18.80% of the stock is owned by company insiders.

Institutional Trading of PureCycle Technologies

A number of institutional investors have recently bought and sold shares of the company. Cassaday & Co Wealth Management LLC bought a new stake in shares of PureCycle Technologies during the 1st quarter worth about $33,000. SHP Wealth Management bought a new stake in shares of PureCycle Technologies during the 4th quarter worth $43,000. Sigma Planning Corp acquired a new position in PureCycle Technologies in the 1st quarter valued at $53,000. Turtle Creek Wealth Advisors LLC bought a new position in PureCycle Technologies in the 1st quarter worth $63,000. Finally, Sequoia Financial Advisors LLC raised its holdings in PureCycle Technologies by 17.6% in the 1st quarter. Sequoia Financial Advisors LLC now owns 13,451 shares of the company's stock worth $70,000 after acquiring an additional 2,016 shares during the period. Institutional investors and hedge funds 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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