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

Key Points

• PureCycle Technologies shares hit a new 52-week low, falling to $3.59 during Tuesday trading from a prior close of $3.92.
• Recent quarterly results missed expectations: the company reported a $0.80 per-share loss versus a projected $0.29 loss, while revenue of $4.51 million fell short of the $6.11 million consensus estimate.
• Analyst sentiment is mixed, with one Buy, one Hold and one Sell rating; the average rating is Hold with an $11.75 price target, while the company continues to post deeply negative profitability metrics.

PureCycle Technologies, Inc. (NASDAQ:PCT - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Tuesday. The stock traded as low as $3.59 and last traded at $3.60, with a volume of 5,381,632 shares. The stock had previously closed at $3.92.

Wall Street Analyst Weigh In

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

PureCycle Technologies Stock Performance

The business has a 50-day simple moving average of $5.90 and a 200 day simple moving average of $7.39. The company has a debt-to-equity ratio of 27.37, a current ratio of 2.60 and a quick ratio of 2.42. The firm has a market cap of $723.24 million, a PE ratio of -2.47 and a beta of 2.63.

PureCycle Technologies (NASDAQ:PCT - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.80) earnings per share for the quarter, missing analysts' consensus estimates of ($0.29) by ($0.51). The company had revenue of $4.51 million for the quarter, compared to analysts' expectations of $6.11 million. PureCycle Technologies had a negative net margin of 1,618.84% and a negative return on equity of 612.39%. Equities research analysts forecast that PureCycle Technologies, Inc. will post -0.90 EPS for the current year.

Insider Activity

In other news, Director Fernando Musa acquired 15,479 shares of PureCycle Technologies stock in a transaction dated Friday, September 4th. The stock was purchased at an average cost of $6.38 per share, with a total value of $98,756.02. Following the completion of the purchase, the director directly owned 175,983 shares in the company, valued at approximately $1,122,771.54. This trade represents a 9.64% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 18.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Cassaday & Co Wealth Management LLC bought a new stake in PureCycle Technologies during the 1st quarter valued at approximately $33,000. SHP Wealth Management bought a new position in PureCycle Technologies in the 4th quarter worth approximately $43,000. Avidian Wealth Enterprises LLC bought a new position in PureCycle Technologies in the 3rd quarter worth approximately $44,000. Sigma Planning Corp bought a new position in PureCycle Technologies in the 1st quarter worth approximately $53,000. Finally, Turtle Creek Wealth Advisors LLC purchased a new stake in PureCycle Technologies during the 1st quarter valued at approximately $63,000. Hedge funds and other institutional investors own 63.01% of the company's stock.

About PureCycle Technologies

PureCycle Technologies, Inc is a recycling technology company that develops and operates facilities designed to convert waste polypropylene (PP) plastic into recycled resin. Its process is intended to remove colors, odors and other contaminants from used polypropylene, producing a material with properties comparable to virgin polypropylene.

The company's primary product is PureFive™ recycled polypropylene, which can be used in applications such as packaging, consumer products, automotive components and other plastic goods.

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