PureCycle Technologies (NASDAQ:PCT) Stock Jumps 5.2% - Still a Buy?

Key Points

• PureCycle Technologies shares rose 5.2% to about $3.36, despite trading volume falling 52% below its average.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $11.75; Cantor Fitzgerald lowered its target to $12 while maintaining an “overweight” rating.
• The company reported weaker-than-expected quarterly results, including an adjusted loss of $0.80 per share versus the expected $0.29 loss and revenue of $4.51 million versus the $6.11 million estimate.

Shares of PureCycle Technologies, Inc. (NASDAQ:PCT - Get Free Report) were up 5.2% during trading on Friday. The stock traded as high as $3.32 and last traded at $3.3550. 2,347,187 shares traded hands during trading, a decline of 52% from the average session volume of 4,870,872 shares. The stock had previously closed at $3.19.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on PCT. Cantor Fitzgerald dropped 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 note on Friday, August 7th. Weiss Ratings reiterated a "sell (e+)" rating on shares of PureCycle Technologies in a research report 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 assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $11.75.

PureCycle Technologies Stock Down 0.2%

The company has a market cap of $639.87 million, a P/E ratio of -2.18 and a beta of 2.63. The business's fifty day moving average is $5.68 and its two-hundred day moving average is $7.34. The company has a debt-to-equity ratio of 27.37, a quick ratio of 2.42 and a current ratio of 2.60.

PureCycle Technologies (NASDAQ:PCT - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported ($0.80) earnings per share (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 the consensus estimate of $6.11 million. PureCycle Technologies had a negative return on equity of 612.39% and a negative net margin of 1,618.84%. Equities analysts predict that PureCycle Technologies, Inc. will post -0.90 EPS for the current year.

Insider Activity

In other news, Director Fernando Musa bought 15,479 shares of PureCycle Technologies stock in a transaction that occurred on Friday, September 4th. The stock was bought at an average price of $6.38 per share, for a total transaction of $98,756.02. Following the purchase, the director directly owned 175,983 shares of the company's stock, valued at approximately $1,122,771.54. The trade was a 9.64% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 18.80% of the stock is currently owned by insiders.

Institutional Investors Weigh In On PureCycle Technologies

Several hedge funds and other institutional investors have recently added to or reduced their stakes in PCT. Quantinno Capital Management LP increased its holdings in shares of PureCycle Technologies by 707.8% during the 1st quarter. Quantinno Capital Management LP now owns 428,534 shares of the company's stock valued at $2,224,000 after purchasing an additional 375,486 shares in the last quarter. NewEdge Advisors LLC lifted its holdings in PureCycle Technologies by 600.9% during the second quarter. NewEdge Advisors LLC now owns 1,186,811 shares of the company's stock valued at $9,625,000 after purchasing an additional 1,017,488 shares in the last quarter. Bank of America Corp DE purchased a new position in PureCycle Technologies during the second quarter valued at $5,095,000. State Street Corp grew its position in shares of PureCycle Technologies by 12.0% in the second quarter. State Street Corp now owns 3,331,674 shares of the company's stock valued at $27,020,000 after purchasing an additional 355,675 shares during the period. Finally, Bank of New York Mellon Corp acquired a new stake in shares of PureCycle Technologies in the second quarter valued at about $3,290,000. 63.01% of the stock is owned by institutional investors and hedge funds.

PureCycle Technologies Company Profile

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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