PureCycle Technologies (NASDAQ:PCT) Trading Down 7.7% - Here's What Happened

Key Points

• PureCycle Technologies shares fell 7.7% to about $5.79, with trading volume below its average.
• Analyst opinions remain mixed, producing 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 a significant quarterly loss, with EPS of negative $0.80 versus expectations of negative $0.29 and revenue of $4.51 million below the $6.11 million consensus estimate.

PureCycle Technologies, Inc. (NASDAQ:PCT - Get Free Report) shares were down 7.7% during trading on Thursday . The company traded as low as $5.81 and last traded at $5.7850. 3,740,678 shares changed hands during trading, a decline of 21% from the average daily volume of 4,713,980 shares. The stock had previously closed at $6.27.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Northland Securities set a $13.00 price objective on PureCycle Technologies in a research 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. Cantor Fitzgerald lowered their target price on PureCycle Technologies from $14.00 to $12.00 and set an "overweight" rating on the stock in a research note on Friday, August 7th. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of PureCycle Technologies in a research report on Wednesday, September 2nd. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $11.75.

PureCycle Technologies Stock Performance

The stock has a market capitalization of $1.16 billion, a P/E ratio of -3.95 and a beta of 2.57. The company has a 50 day simple moving average of $6.73 and a 200-day simple moving average of $7.65. The company has a debt-to-equity ratio of 27.37, a current ratio of 2.60 and a quick ratio of 2.42.

PureCycle Technologies (NASDAQ:PCT - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported ($0.80) earnings per share (EPS) 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 the consensus estimate of $6.11 million. On average, equities analysts forecast that PureCycle Technologies, Inc. will post -0.9 EPS for the current year.

Insider Activity

In other news, Director Fernando Musa purchased 15,479 shares of the stock in a transaction dated Friday, September 4th. The shares were purchased at an average cost of $6.38 per share, with a total value of $98,756.02. Following the completion of the acquisition, the director owned 175,983 shares in the company, valued at $1,122,771.54. This represents a 9.64% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders own 18.80% of the company's stock.

Institutional Trading of PureCycle Technologies

Hedge funds and other institutional investors have recently bought and sold shares of the company. Integrated Wealth Concepts LLC raised its position in shares of PureCycle Technologies by 4.3% during the 1st quarter. Integrated Wealth Concepts LLC now owns 36,571 shares of the company's stock valued at $253,000 after buying an additional 1,516 shares in the last quarter. ProShare Advisors LLC raised its stake in shares of PureCycle Technologies by 6.9% during the fourth quarter. ProShare Advisors LLC now owns 23,738 shares of the company's stock worth $204,000 after acquiring an additional 1,526 shares in the last quarter. Lido Advisors LLC lifted its holdings in shares of PureCycle Technologies by 5.0% in the 3rd quarter. Lido Advisors LLC now owns 32,824 shares of the company's stock worth $432,000 after acquiring an additional 1,574 shares during the last quarter. Cetera Investment Advisers boosted its stake in shares of PureCycle Technologies by 1.7% in the 1st quarter. Cetera Investment Advisers now owns 110,643 shares of the company's stock valued at $574,000 after purchasing an additional 1,823 shares in the last quarter. Finally, Sequoia Financial Advisors LLC grew 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 valued at $70,000 after purchasing an additional 2,016 shares during the last quarter. Institutional investors own 63.01% of the company's stock.

About PureCycle Technologies

PureCycle Technologies, Inc operates as a recycling technology company focused on restoring waste polypropylene to a “virgin-like” state through a proprietary purification process licensed from Procter & Gamble. The company develops, owns and operates recycling facilities that convert used polypropylene feedstock—such as packaging and industrial plastics—into ultra‐pure recycled resin. This resin, known as Qualified Recycled Polymer (QRP), is designed to meet stringent quality specifications for applications in packaging, consumer goods and industrial products.

Headquartered in Orlando, Florida, PureCycle was established with technology development efforts dating back to licensing agreements in the mid-2010s and later spun off as a publicly traded entity in 2021.

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