PureCycle Technologies (NASDAQ:PCT) Shares Down 6.7% - Time to Sell?

Key Points

• PureCycle Technologies shares fell 6.7% to approximately $4.69, below both its 50-day moving average of $6.36 and 200-day moving average of $7.51.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $11.75; targets range from $12 to $16, while Weiss Ratings maintains a “sell” rating.
• The company reported weaker-than-expected quarterly results, including an adjusted loss of $0.80 per share versus an expected $0.29 loss and revenue of $4.51 million versus $6.11 million estimated. A director nevertheless bought nearly $99,000 of shares, increasing his position by 9.64%.

PureCycle Technologies, Inc. (NASDAQ:PCT - Get Free Report) shares traded down 6.7% on Monday. The company traded as low as $4.66 and last traded at $4.6850. Approximately 2,931,408 shares changed hands during trading, a decline of 38% from the average session volume of 4,723,608 shares. The stock had previously closed at $5.02.

Analyst Ratings Changes

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

PureCycle Technologies Price Performance

The company has a debt-to-equity ratio of 27.37, a quick ratio of 2.42 and a current ratio of 2.60. The company has a market capitalization of $953.27 million, a price-to-earnings ratio of -3.25 and a beta of 2.57. The company has a 50-day moving average price of $6.36 and a 200-day moving average price of $7.51.

PureCycle Technologies (NASDAQ:PCT - Get Free Report) last announced its quarterly earnings results 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). PureCycle Technologies had a negative net margin of 1,618.84% and a negative return on equity of 612.39%. The firm had revenue of $4.51 million during the quarter, compared to analyst estimates of $6.11 million. On average, equities research analysts expect that PureCycle Technologies, Inc. will post -0.9 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Fernando Musa bought 15,479 shares of the business's stock in a transaction on Friday, September 4th. The shares were bought at an average cost of $6.38 per share, for a total transaction of $98,756.02. Following the completion of the acquisition, the director 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 acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 18.80% of the company's stock.

Hedge Funds Weigh In On PureCycle Technologies

Several institutional investors and hedge funds have recently made changes to their positions in PCT. Cassaday & Co Wealth Management LLC acquired a new stake in PureCycle Technologies during the 1st quarter worth $33,000. SHP Wealth Management acquired a new position in PureCycle Technologies in the fourth quarter valued at about $43,000. Sigma Planning Corp bought a new stake in shares of PureCycle Technologies in the first quarter worth about $53,000. Turtle Creek Wealth Advisors LLC bought a new stake in shares of PureCycle Technologies in the first quarter worth about $63,000. Finally, Sequoia Financial Advisors LLC increased its holdings in shares of PureCycle Technologies by 17.6% in the first 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 in the last quarter. Institutional investors and hedge funds own 63.01% of the company's stock.

PureCycle Technologies Company Profile

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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