PureCycle Technologies (NASDAQ:PCT) Stock Falls 8.3% - Should You Sell?

Key Points

• PureCycle Technologies shares fell 8.3% to approximately $4.03, with trading volume 74% below its average daily level.
• The company reported weaker-than-expected quarterly results, including an EPS loss of $0.80 versus the $0.29 consensus estimate and revenue of $4.51 million versus $6.11 million expected.
• Analyst sentiment is mixed, resulting in a consensus “Hold” rating and an average price target of $11.75, while insiders own 18.8% and institutional investors hold 63.01% of the stock.

PureCycle Technologies, Inc. (NASDAQ:PCT - Get Free Report)'s share price dropped 8.3% during trading on Monday. The company traded as low as $3.97 and last traded at $4.0250. 1,254,854 shares traded hands during trading, a decline of 74% from the average daily volume of 4,774,071 shares. The stock had previously closed at $4.39.

Analyst Upgrades and Downgrades

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

PureCycle Technologies Stock Performance

The firm has a market cap of $818.67 million, a PE ratio of -2.77 and a beta of 2.63. 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 stock has a 50-day moving average price of $6.19 and a 200 day moving average price of $7.46.

PureCycle Technologies (NASDAQ:PCT - Get Free Report) last released 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). PureCycle Technologies had a negative net margin of 1,618.84% and a negative return on equity of 612.39%. The business had revenue of $4.51 million during the quarter, compared to analyst estimates of $6.11 million. Research analysts forecast that PureCycle Technologies, Inc. will post -0.9 earnings per share for the current year.

Insider Activity at PureCycle Technologies

In related news, Director Fernando Musa acquired 15,479 shares of the business's 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 acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. 18.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On PureCycle Technologies

A number of institutional investors have recently bought and sold shares of PCT. Cassaday & Co Wealth Management LLC purchased a new position in PureCycle Technologies during the first quarter worth approximately $33,000. SHP Wealth Management purchased a new stake in shares of PureCycle Technologies during the 4th quarter valued at $43,000. Sigma Planning Corp purchased a new stake in shares of PureCycle Technologies during the 1st quarter valued at $53,000. Turtle Creek Wealth Advisors LLC acquired a new stake in shares of PureCycle Technologies during the 1st quarter worth $63,000. Finally, Sequoia Financial Advisors LLC increased its holdings in shares of PureCycle Technologies by 17.6% during the 1st quarter. Sequoia Financial Advisors LLC now owns 13,451 shares of the company's stock worth $70,000 after buying an additional 2,016 shares during the last quarter. 63.01% of the stock is currently owned by hedge funds and other institutional investors.

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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